What “Cash for Clunkers” tells us about ObamaCare…

"Cash for Clunkers" is a great experiment that shows us how legislation and government agencies work. "Cash for Clunkers" story has been unfolding for the last month and a half and it tells us a lot about how ObamaCare will turn into a boondoggle million times.

The "Cash for Clunkers" law titled as TITLE XIII--CONSUMER ASSISTANCE TO RECYCLE AND SAVE PROGRAM is only (8) Eight pages long.

ObamaCare bills are over thousand pages long. House version has (1018) One Thousand Eighteen pages!

The government agency that is tasked with implementing the "Cash for Clunkers" program created a document that is (136) One Hundred Thirty Six pages long to administer the program it now calls "Car Allowance Rebate System" (C.A.R.S.).

If there is a linear relationship with the pages of a law and the pages of government agency rules, the government agency rules for a 1018 page ObamaCare law will total (17,306) Seventeen Thousand Three Hundred Six pages.

NHTSA was able to write its rule book 24 days after the legislation went into effect. Consequently, for 24 days, legislation was not in effect. Who know how long it will take government agencies to read, interpret the ObamaCare legislation and write their procedures, rules and processes, especially when there are new agencies being created by ObamaCare?

C.A.R.S. program was to use $1,000,000,000 (One Billion) within a four month period. It was almost suspended in about four days due to concerns that the One Billion Dollars was already used up. The government added another 2,000,000,000 (Two Billion) to keep it going. Government effectively tripled the original amount it allocated for this program. Keep in mind that all this happened even before government paid a penny to anyone. This is what happened when people rushed to get their "free" $3500 or $4500.

How do you think people will react when they know that their health care is "free"? I don't know if anyone knows the estimated cost of ObamaCare but if there are any estimations by any government entity, make sure to multiply it by a factor of at least 17!

Let's not forget what Government's C.A.R.S. program is doing to the car dealers it supposed to be helping. The $3500 or $4500 tax-payer money promised by government per car sale is actually fronted by the car dealers. They take the customer's clunker that is worth nothing and pay $3500 or $4500 and then turn around and kill that car according to the ObamaCare for Cars Euthanasia rules. These car dealers spend time and energy to get all the required documentation and submit it to the government. They are promised to get a review of this documentation and get paid in 10 days if everything checks out. Well, if they get a rejection because paperwork was not in order, the 10 day waiting period starts again. Well, looks like 10 day promise is not being fulfilled either.

Dealers are not guaranteed reimbursement money until they have a voucher number. Part of the problem is this causes a cash flow problem.


“I’ve heard they have like 250,000 to 300,000 deals sitting with the government, waiting to be processed,” McLaughlin said. “They’ve only done like 14,000 voucher numbers.”

Car dealers: Show us the money

Who is going to be hurting when ObamaCare fails to pay? Doctors, hospitals, and patients to be sure.

Somebody is not hurting for sure though:

The vouchers are being processed by Citigroup Inc.,

It is good to be a banker in ObamaLand. How much money is Citigroup making by floating tax payer billions? They told us the first billion is already spent but 14,000 vouchers is only about $56,000,000. Citigroup is still sitting on the rest of the $3,000,000,000. This also means individual small businessmen all around the country fronted about $1,000,000,000 to clunker owners. They are not earning interest. They are having cash flow problems. What a scheme!

What about Government's response to dealers? When dealers started to look ways to minimize the risk government put on them, some customers started complaining. In response, NHTSA started answering these complaints and questions about "dealer contingencies" by blaming the dealers and by making them the bad guys. Unbelievable but true! Your government put small businessmen under undue risk and burden and now it is blaming them.

Think who will get the blame when ObamaCare does not deliver. Your doctor, your hospital and YOU!

I almost forgot this:

He is flabbergasted that auditors for the program may be coming soon.

“How do you audit somebody who hasn’t even been paid yet?” Wight asked.

Now the government wants to audit the big bad dealers. Don't be surprised if a number of dealers go out of business over this clunker program.

I am not even going to talk about the supposed merits and unintended consequences of the objectives of this government program. Just by looking at what it has been doing so far, every American should start screaming: Government, GET THE HELL OUT OF OUR LIVES!