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Where's money for 'Clunkers' program coming from?

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Cash for Clunkers ... is it truly a "discount"? Oh! An incentive for me to move on to a more efficient car? "Cash for Clunkers" seems like a good program. Trading in older, less-efficient cars for better, more-efficient ones seems like a great idea ... on face value. However, there is a fundamental thing that many people seem to forget about. The funding behind the "Cash for Clunkers" is not coming out of some magical reservoir of funds from the Treasury Department. Those funds are coming out of some other means, more than likely tax dollars.

The prospect of a $3,500-$4,500 "discount" on a newer, more-efficient car has its positive face for the immediate, yes. Better fuel efficiency, less emissions, etc.. is a plus. But, where does that "discount" come from though? What about the $2 billion that is being added to the program?

Where is it coming from? In addition to that, once that $2 billion runs out, what are the chances for more funds to be diverted into this program?

The qualms that I see are not people wanting a better, more-efficient car. My issue lies in the fact that this seems to be another program that is starting, like a snowball on a mountain side, a potential for there to be a larger amount of funds getting dumped into this.

All in all, that $3,500-$4,500 incentive is not cash that magically appears out of nowhere. Those funds have to come from somewhere. The question is, where is it coming from and how much more of this magical money will appear into this program? Just like the old saying ... "Money does not just grow on trees ..."

Dustin Kleinenberg

Bemidji

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