The so-called "Cash for Clunkers" program sure has received a lot of publicity lately. The basic idea, of getting gas-guzzling vehicles off the street and replacing them with more ecologically-friendly vehicles, seems sound. But, I must join with the skeptics and ask if our nation can afford to offer such incentives so that people will do the right thing. I don't like the thought of being paid to be moral. I guess morality cannot be legislated nor can it be bought. Actually, morality is legislated all the time. This nation cannot operate without laws. So, perhaps, placing our money in places that encourage people to make better choices makes some sense. Now that I have waffled on this issue enough, I guess I'll have to wait and see if "Cash for Clunkers" is folly or great wisdom.
Posts
I can think of many examples in which the government essentially pays people to do the right thing. For example, we pay for our health insurance and our contribution to our unreimbursed medical account pretax, which encourages us to take have health insurance and pay for our medical needs ourselves. We receive a tax deduction for putting our children in a licensed day care. There are currently incentives for installing energy efficient windows. Even the GI Bill, which encouraged college education and home ownership, could be seen as paying people to do the right thing.
ReplyDeleteI admit that placing money where it makes the most difference is good policy. I'm uneasy about this program in that it doesn't reduce the number of automobiles, but trades them for newer ones. It can lure some buyers into a greater credit trap. I believe we need both a reduction in automotive traffic and increased fuel economy. At least this program addresses some of the issues.
ReplyDelete