Cash for Clunkers a screwed-up bureaucracy, says … a liberal Democrat?
posted at 3:35 pm on August 17, 2009 by Ed Morrissey
Bear in mind that the Congressman making this public isn’t a member of Republican leadership, isn’t a Republican at all, or even a Blue Dog Democrat. In fact, it’s the same Congressman who convinced the liberal activists at Netroots Nation that he represented their interests better than incumbent Senator Arlen Specter (R D-PA). The Cash for Clunkers program has only paid on 2% of the applications submitted by dealers, while over 80% of those applications have been rejected for petty bureaucratic nonsense:
The federal government has only reimbursed auto dealers for 2 percent of the claims they’ve submitted through the popular “cash for clunkers” program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process.
Rep. Joe Sestak, D-Pa., called for “immediate action” to address the problem in a statement Sunday, after writing a letter to President Obama Saturday expressing his concerns.
In the letter, Sestak said only 2 percent of claims have been paid and that four of every five applications have been “rejected for minor oversight.”
In recent days, auto dealers across the country have been complaining that the reimbursement payments are slow to process. And they said some of their applications were being rejected because of apparent procedural issues. The statistics Sestak cited suggest those complaints are not based on isolated incidents.
The program was supposedly so wildly successful that the Obama administration requested and received an extra $2 billion in financing just as Congress went on its recess. If they’ve only paid 2% of the applications, where did the original $1 billion go? What will happen to the next $2 billion?
And of course, the big question: if the federal government can’t run a program designed to kill a few hundred thousand cars, how can we expect them to run a program to keep hundreds of millions of Americans alive and in good health?
Blowback
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like the military?
sesquipedalian on August 17, 2009 at 3:38 PM
For people who love to spend money, Democrats are turning out to be not be so good at it.
myrenovations on August 17, 2009 at 3:39 PM
If all of the people who bought cars now have to pony up another 4500 bucks… oh crap is every democrat in every state screwed.
BlueWaters on August 17, 2009 at 3:40 PM
More like democrat Detroit. Smoke that.
daesleeper on August 17, 2009 at 3:40 PM
This is called “plausible deniability.” Sestak figures he’ll be the Dem nominee for the Senate seat and he’ll need a few bona fides in the “willing to criticize” Obama department for next year.
Mr. D on August 17, 2009 at 3:40 PM
I highly doubt you have inside knowledge, but we’re not that efficient.
BadgerHawk on August 17, 2009 at 3:40 PM
yeah…. hammers retail for $500
BPD on August 17, 2009 at 3:41 PM
Does Sestak own a GM dealership?
/s
Patrick S on August 17, 2009 at 3:41 PM
Well it’s not like fiscal responsibility is the strong suit of dems, from PBO on down.
Monica on August 17, 2009 at 3:41 PM
Poor Obama. Everything he touches turns to cr#p.
TXMomof3 on August 17, 2009 at 3:41 PM
So these auto dealers, in many cases, are just going to be out of luck on the $4500 they gave off on each car they sold.
That sounds about right.
BadgerHawk on August 17, 2009 at 3:41 PM
when you can’t attack the message…
change the subject, lol
back under the bridge!
DrRansom on August 17, 2009 at 3:42 PM
I’m sure Obama’s implementation of the broken window fallacy is at least as well run as the post office, or nationalized health care would be for that matter.
jhffmn on August 17, 2009 at 3:42 PM
Incompetence from this administration is a compliment.
fourdeucer on August 17, 2009 at 3:42 PM
There are hundreds of millions of people in the military? Interesting.
Slublog on August 17, 2009 at 3:42 PM
ACORN
RedNewEnglander on August 17, 2009 at 3:43 PM
Its the thousand cuts of cloward-piven.
daesleeper on August 17, 2009 at 3:43 PM
But wait, there’s a silver lining to this cloud. The extra $2 billion was taken from the windmill subsidy pot, so the money was going to be wasted anyway.
petefrt on August 17, 2009 at 3:43 PM
So when these dealers do not have the money to pay state and local sales tax, what happens?
Please pass the popcorn.
WashJeff on August 17, 2009 at 3:44 PM
I had to travel for a conference, and the government paid for the hotel. The government rate, the maximum the hotel could legally charge was $141. The hotel charged $141. When I’d called a week earlier just to see what the price would have been if I’d paid for it myself and then filled out a travel voucher: $130.
Government in a nutshell.
BadgerHawk on August 17, 2009 at 3:44 PM
The dealers who got killed may be counting their blessings now.
Empiricist on August 17, 2009 at 3:44 PM
A week ago I went to turn in my clunker for cash but typical of my luck it died on the way to the dealership.
I spoke with the sales guy and he said his group of dealerships had $500K out in c4c money waiting to be reimbursed by the feds. That kind of money can bankrupt a dealership.
roux on August 17, 2009 at 3:44 PM
Let’s not forget either that the supposed “green” benefits of getting all those gas-guzzling clunkers off the road is going to take a *very* long time to show up as well.
To borrow AP’s phrasing, the program is an “epic fail” on multiple levels.
ironman on August 17, 2009 at 3:44 PM
What part of “broke” don’t some understand?
elderberry on August 17, 2009 at 3:44 PM
YES.WE.CAN!!!
SI SE PUEDE!!!
Hope
Change
Vomit
What?
Dr.Cwac.Cwac on August 17, 2009 at 3:45 PM
As I understand it, the purpose of the military is to keep millions of Americans alive by dispatching those who want to make millions of Americans dead. And yeah, they’re fairly good at that. On the other hand, national defense is one of the things the government is SUPPOSED to do. The government is NOT supposed to provide health care. I’d ask you to show me where that’s a power of government in the Constitution, but that would be futile, since you probably wouldn’t care.
TheQuestion on August 17, 2009 at 3:45 PM
This kind of theivery MUST stop!!! We have to take control of our own government or we are surley doomed as a nation. That is what the the end game is on this road to communist/marxisim.
sonnyspats1 on August 17, 2009 at 3:46 PM
Hopefully the money was just moved into a pending column in the books until the applications were completed, otherwise, wow, the explaination for this one should be good!
Hurry up, pass it, pass it now, don’t ask questions!
NickelAndDime on August 17, 2009 at 3:46 PM
Imagine that….Another government program that is a hugh toilet flush of tax dollars that is a dismal failure.
CDM on August 17, 2009 at 3:48 PM
What would you expect from a government that couldn’t even run a whorehouse in Nevada?
Dave R. on August 17, 2009 at 3:48 PM
I can not even tell you how many people in this small town are driving around in new Toyotas.
I am dying to see what happens when the 4500/car doesn’t materialize from Lord Obama.
This is better than any soap opera, on a local level.
ORconservative on August 17, 2009 at 3:49 PM
sounds like my reimbursements for medicaid patients, 2-5 cents on the dollar, with denials for as many claims as they can come up with a reason…often more than 12 months to get paid $35 dollars for caring for a critically ill baby( private reimbursement more like 75 cents on the dollar). Gotta love the government
hawaiimom on August 17, 2009 at 3:50 PM
Swiss banks accounts… which are available to Thee (One) but not to we (the people)?
Kalifornia Kafir on August 17, 2009 at 3:50 PM
Exactamundo!
Come on, MSM, where’s your new Woodward and Bernstein, or are they busy investigating Trig’s true parentage?
PattyJ on August 17, 2009 at 3:50 PM
The Military is run by Republicans.
sonnyspats1 on August 17, 2009 at 3:51 PM
Where did the money go? How many government employees are billing their time to that project? That’s where the money is going.
crosspatch on August 17, 2009 at 3:51 PM
Fixed it for ya.
Mo_mac on August 17, 2009 at 3:53 PM
The liberals in the Gov’t are much more entertaining than the liberals in the media.
Is that 2% of paid claims a % of total claims? Or total “approved” claims. Either way it’s terrible. I don’t understand…you give me car, I give you $4500 discount, Gov’t reimburses me.
That sounds like the Gov’t got one of those “mail-in rebate” scams off on the car dealers.
What in the world happened? What went wrong?
This has to be the most corrupt epic fail in a long time.
uknowmorethanme on August 17, 2009 at 3:53 PM
Let’s rephrase that, just to be a bit more accurate. “…to keep hundreds of millions of Americans dependent upon the government and fearing for their health?”
Yup. That’s better.
lovedinthekeys on August 17, 2009 at 3:53 PM
Yep. That’s why I have to laugh at the Dear Leader logos on the highway projects in MA.
This traffic jam brought to you by Dear Leader (um, oh and uhhh, union contractors earning prevailing wages and union state troopers earning mega overtime).
Yes we can!
reaganaut on August 17, 2009 at 3:54 PM
So clever. You know, humans have been getting experience at gov’t run militaries since, like, Gilgamesh. Our military would probably be scored as “barely adequate” in terms of admin, and that’s only due to the fact that it’s a volunteer force of people who actually give a damn about protecting the freedoms we have here. I’m sure we’ve got the best, and I love our soldiers, but most of us are aware that a standing military is a costly necessity, and not a thing of glorious effiency, except hopefully at killing the enemy.
Not really the model we want applied to health care, you dolt. Don’t confuse our support of the military with mindless adulation.
TexasDan on August 17, 2009 at 3:54 PM
nowhere does the constitution empower the government to send people to the moon, either.
sesquipedalian on August 17, 2009 at 3:56 PM
I spoke to a top rated Ford dealership service manager who said the dealership has 16 cash-for-clunkers clunkers on the lot. They have not received a penny for any of the 16.
These are not stupid people. They have not destroyed any of the cars yet. And they will not until they get their clunker-check.
BTW the fellow I spoke to has 35 years in the business and 35 years worth of personal contacts. He is unaware of any dealership in his area getting even one check to date.
Stephen M on August 17, 2009 at 3:56 PM
Well, at least these buffoons aren’t trying to seize and manage 1/6th of our economy.
marklmail on August 17, 2009 at 3:57 PM
Persuasive!
daesleeper on August 17, 2009 at 3:57 PM
Show me the money!!!
In other words, more cronies, friends, and supporters, are taking their fair share, and new car buyers, are getting battery cables hooked up to their…..?
capejasmine on August 17, 2009 at 3:57 PM
I’m beginning to think that all these spectacular failures at basic programs is done on purpose to make sure government run health care does not happen.
Of course the masses will have to find out about this through alternative outlets and not the Obama Propaganda Ministry.
jukin on August 17, 2009 at 3:57 PM
Good point. NASA should be privatized. I’m sure that you’d support such action, correct?
lorien1973 on August 17, 2009 at 3:58 PM
How do you think MIB is funded ???
Jerome Horwitz on August 17, 2009 at 3:58 PM
Now why is it easy for me to imagine a room full of bureaucrats, surrounded by piles and piles of C4C applications, bags of money in the corner, multiple big red “DENIED” stamps pounding away and a single green “APPROVED” stamp collecting dust on a remote shelf………
…….. By the way, did anyone read the C4C legislation before it was passed?
Yeah, let’s get this Obamacare thingy passed lickedy split……!
Seven Percent Solution on August 17, 2009 at 3:59 PM
Just send them IOUs. That worked out great in California.
\sarc
Doughboy on August 17, 2009 at 4:01 PM
Hold on here………hold on……….how can you possibly accuse the Federal Government of not caring or of not being able to successfully pull anything off? I mean look at all the illegal aliens we let in – over and over. Those aliens are happy – so there HotAir – our U.S. Government is making millions of people happy! It does not matter that they are illegals………..because The Messiah and Acorn let them vote anyway! And not just once! There – if that isn’t success then what is?
Cinday Blackburn on August 17, 2009 at 4:01 PM
The irony of this statement….
rukiddingme on August 17, 2009 at 4:01 PM
Our Federal government is utterly and completely incompetent. That the flaming nitwit and cheerleader for massive new government spending Joe Sestak says so only magnifies the incompetence.
Jaibones on August 17, 2009 at 4:03 PM
OK everyone. All together now, act SHOCKED.
patrick neid on August 17, 2009 at 4:05 PM
Shouldn’t we submit the entire Obama Administration to the Cash for Clunkers program? It produces far too many greenhouse gases, runs on demonstrably failed ideas, appears to be adrift, is too costly, and would best serve the interests of all freedom-loving citizens if it was retired.
ya2daup on August 17, 2009 at 4:06 PM
I would trust them with kidney transplant approval.
rob verdi on August 17, 2009 at 4:07 PM
Shocked…I am SHOCKED, I say.
LEBA on August 17, 2009 at 4:07 PM
It may be our only salvation.
SouthernGent on August 17, 2009 at 4:07 PM
Maybe at the next townhall Obama can point to the “cash for clunkers” program as one of his successes that will drive the health care to excellence.
Then bill them for the taxes on the IOU’s they received, just like Calif. did.
Now where are all those liberal pundits that pop in from time to time?
Look at the HotAir mild carton…
right2bright on August 17, 2009 at 4:08 PM
Whats this your telling me.The wonderful Government bureaucracy can,t run cash for clunkers.I,m shocked,shocked. I tell you.Just wait until they run health care i know they will do much much better.
thmcbb on August 17, 2009 at 4:08 PM
This is the problem with all of Obama’s “plans”, along with the Democrats.
It’s fun to make policy. You can make a “difference”.
Unfortunately, at some point, someone actually has to roll up their sleeves and execute the policy. That’s not so fun.
And when the jackasses who made the policy, don’t know what they are doing (e.g. Democrats), then the policy becomes impossible to properly execute.
The whole thing is like a Dilbert Cartoon. The Pointy-Haired Boss (Obama) and the marketing department (Congress) come up with a set of ill-defined, ignorant of all reality requirements and it’s the Dilbert bureaucrats who are left trying to put the entire mess together.
The problem is, Obama, the White House and Congressional Democrats really don’t know what it is they are doing.
And “Cash for Clunkers” is relatively simple.
These jackasses should not be allowed to touch health care.
NoDonkey on August 17, 2009 at 4:08 PM
Like I said in the headline thread; C4C has been an EPIC FAIL.
Lets count the ways:
1. No effect on economy. (See latest on consumer spending, causing a huge decline in the markets today).
2. Destroyed the used car market for lower income Americans.
3. Devastated many charities depenedent on used car donations.
4. A bureaucratic mess; only a tiny number of claims have been reimbursed.
5. Increased deficit by Billons of $
6. Increased consumer debt by Billions $ more
etc, etc.
Norwegian on August 17, 2009 at 4:09 PM
Of course, none of this will stop Sestak from voting for whatever horrible government health care bill Pelosi tells him to vote for.
rockmom on August 17, 2009 at 4:09 PM
Well, lord, I messed that strike through up!
SouthernGent on August 17, 2009 at 4:09 PM
So the government closed “under performing” dealerships and now the government is bankrupting the ones they deemed essential.
Shocked I say…Shocked
Doctor Zhivago on August 17, 2009 at 4:10 PM
The Audacity of Bureaucracy.
southsideironworks on August 17, 2009 at 4:10 PM
FIFY
Norwegian on August 17, 2009 at 4:11 PM
Very succinct!
lovingmyUSA on August 17, 2009 at 4:11 PM
As of Feb 2009, 1,454,515 active duty military members. This doesnt even begin to compare overseeing the individual mandated health insurance coverage of hundreds of millions of people. This is the same organization that Obama criticized today for its spending.
canditaylor68 on August 17, 2009 at 4:11 PM
The military runs itself,in spite of politicians.
1921 C DRUM on August 17, 2009 at 4:13 PM
The real scary part—we are only eight months into this administration.
Yikes.
patrick neid on August 17, 2009 at 4:13 PM
i have a friend that works at a dealer and he claims that when they send the clunkers away, they are being harvested of spare parts (rims, tires, etc) before being destroyed, contrary to government mandate. I wonder if that’s happening other places as well,
phillypolitics on August 17, 2009 at 4:14 PM
Get ready to pay another $3Billion to irate auto buyers who got the shaft during the first round.
southsideironworks on August 17, 2009 at 4:14 PM
Looks like Big Government has taken a page from Big Insurance..
lasertex on August 17, 2009 at 4:15 PM
As Rush like to remind people, the military’s job reduces to “blow thing up and kill people”. Ours is good at their job, but no one ever said it was inexpensive. And while accountable to the civilian government, the military isn’t run by them outside of DC. The military bureaucracies aren’t any better then their civilian counterparts.
NASA worked pretty well, back in the day it was an engineering organization. Since it became a bureaucracy, it’s been terrible. Hell yes, privatize it.
I think the government would work better if the bureaucracy was reduced by 75%.
LarryD on August 17, 2009 at 4:15 PM
As of right now my store has 75 clunkers sold with a balance of $320,000 and not one dime has been paid. I will say that there are some clerical errors on some. Because the instructions were as clear as dirt. We fixed those and still have not seen a dime. Yes the paper work is difficult but it has to be exacting because of the expected fraud. Here is one example of a clunker that did not clunk
1984 Buick Rivera. 25 years right? Nope date of manufacture. So it would have had to be made in 8/84. In that time frame nothing was being made but 1985 models. This is an easy one. Try to get 1 years registration and 1 years insurance. Again sounds easy. Well look here my registration started on Jan 2nd of 2009 and expires Jan 2nd of 2010. Nope not a year must bring in the last registration and the current registration. Same with insurance. Get the idea how this can get fubar? Oh if the people have an income tax lien (like I am going to know that right?) they will take the money from the $4500 and give me whatever is left. How about that one? cool huh. To go on with the rant a little more the rules says we must deliver the car and paperwork to the customer. So if it bounces I just lose the money.
Mr. Paul on August 17, 2009 at 4:16 PM
The one they’ve been running in DC has worked out pretty well—up until this summer, however.
hoosiermama on August 17, 2009 at 4:16 PM
Too bad that won’t include any Honda or Toyota parts…
SnowSun on August 17, 2009 at 4:17 PM
Ogabe sucks donkey balls & we all know it – we must crush him and his ilk – never let up on the pressure. Take down his puny punk-assed administration too. Turn the tables and play mean for once dammit. Goons & loons, all wanting a piece of the taxpayer pie, crying “I’m a victim” & “gimme something for nothing”. Lazy libtard f**kwads, all of them. Well, if they cannot even run a friggin car trade in program, then to hell with the whole sorry lot.
DC on 9/12 – BE THERE!!
Ris4victory on August 17, 2009 at 4:19 PM
Disagree, it would work better if the politicians were held accountable by the voters and if the voters didn’t elect worthless, unqualified idiots like Barack Obama, Nancy Pelosi and Harry Reid.
Because these clowns make bad policy, which is impossible to execute properly. Bureaucrats only attempt to carry out what the elected officials ask them to do.
If the voters choose to elect idiot politicians, the bureaucrats aren’t going to be able to make the crappy policy they pass, any better.
NoDonkey on August 17, 2009 at 4:19 PM
Their INTENTION we good and that’s all that really matters to a lib.
Bicyea on August 17, 2009 at 4:21 PM
A great sales pitch for “None of the above” as a choice in all elections.
SnowSun on August 17, 2009 at 4:21 PM
If I recall correctly, the sales contract is written so that the consumer has to come up with the $4500 if the .gov doesn’t. The auto dealers won’t be out one dime. I have a feeling a lot of people who just bought a new vehicle are about to take it in the shorts.
Dominion on August 17, 2009 at 4:23 PM
…
This has been true since the beginning.
Mr. Paul on August 17, 2009 at 4:25 PM
DC on 9/12 BE THERE!
marklmail on August 17, 2009 at 4:26 PM
So these auto dealers, in many cases, are just going to be out of luck on the $4500 they gave off on each car they sold.
That sounds about right.
Go to cars.gov and read the rules. Not true.
Mr. Paul on August 17, 2009 at 4:26 PM
It is only a matter of time before we have to bail out these people who bought the new cars they could not afford in the first place.
ouldbollix on August 17, 2009 at 4:26 PM
I’m delighted that the program is being run so poorly. The more people can’t trust the government, the less people will take advantage of the crazy schemes politicians concoct to help the economy. It would be a major success if the socialists threw a a Cash for Clunkers program and no one paid any attention!
thuja on August 17, 2009 at 4:27 PM
Are the Kool Aid drinkers still on board? Is Chris Matthews leg still quivering?
Jeff from WI on August 17, 2009 at 4:30 PM
OH, SNAP!!
Thanks for the correction. Right on the front page of cars.gov it says, “To participate in the CARS program, you do not have to sign an agreement to pay back the dealer the CARS credit amount if the deal is rejected.”
Looks like this giant crap sandwich of a program now comes with extra crap!
Dominion on August 17, 2009 at 4:31 PM
If taking taxpayer money and buying pieces-of-crap is your idea of good intentions well I guess you’re right.
thomasaur on August 17, 2009 at 4:32 PM
no, kinda like hospitals on any Indian reservation. If you are not basically owned by the government like our great servicemen and women then the government could care less about you.
I am so confused as to why liberals have complete trust and faith in the government. They can not name one service the government provides that runs efficiently.
The Notorious G.O.P on August 17, 2009 at 4:33 PM
yes, the military is different from health care. so is c4c. that’s the point.
sesquipedalian on August 17, 2009 at 4:38 PM
Another misconception of the program. When it started I thought the same thing. But as I saw the people come in and how good the credit was I went hmm. If you are going to meet the stipulations that means you have had to have the vehicle insured and registered. Not many bad pays can handle the insurance and registration.
Mr. Paul on August 17, 2009 at 4:38 PM
Wonder how many “new car owners” are going to get notices from their friendly “Cash for Clunkers Dealer”"
Please be advised that if you wish to keep your new car, you will have to remit $4500 immediately.
GarandFan on August 17, 2009 at 4:39 PM
some time ago firefighting was a private business. when companies began starting fires that they could make money on putting out, firefighting became a public service. that didn’t make it efficient, but who would argue that it was the wrong decision?
sesquipedalian on August 17, 2009 at 4:42 PM
It is starting to sound like another unfunded mandate.
Vashta.Nerada on August 17, 2009 at 4:44 PM
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