‘Clunkers’ Auto Rebate Plan So Popular That It’s Already Broke

[Monoriu]

1. Set up a quota system.  First 100 who applies will get the money.  The rest get zilch.  Alternatively, the rest gets an IOU that may or may not be honoured subject to availability of additional funds from Congress.
2. Draw lots.  Everybody who applies before 1 August gets a chance to win the lottery.
3. Points system.  You get points based on objective criteria, income, age, location, anything that does not involve human judgement.  The people who gets the most points get the money. 
4. Delegate.  This is the amount of funds that we allocate to the states, and each figure out a way to do it.  I don't care how you do it, but I won't give you a cent more if you run out of money.

1 and 2 are preferred over 3 and 4 for corruption prevention reasons.

#1 doesn't get rid of the current problem.  Neither does #4.

Thing is, they shouldn't get into this situation in the first place.  Before they announced the whole thing, they should've added a footnote saying that we only allow this number of applications.  If the number of applications exceeds this number, we will not entertain them.  Congress has authorized you to spend this amount of money.  Civil servants must take measures to ensure that that is the maximum amount that will be spent.  If you design a system that will commit Congress to spend more than that, you have failed in your basic duty. 

[KRonn]

Maybe this kind of program is a good economic stimulus? Gets people buying cars, increases auto company sales/profits, money gets moved around. Maybe more like this should be done, or should have been done. Only a billion allocated to it; maybe add a lot more, that is, if we can afford to given all that was spent elsewhere in the economic stimulus bill. Instead of some of the more long term Congress member's pet type projects/programs.

[saskganesh]

I'm impressed by Mono's seeming bureaucratic competence.

Go ask for a raise.

[Monoriu]

I'm impressed by Mono's seeming bureaucratic competence.

Go ask for a raise.

Actually, my salary is going to be cut soon.  I think this is the 4th time in recent years.

[saskganesh]

I'm impressed by Mono's seeming bureaucratic competence.

Go ask for a raise.

Actually, my salary is going to be cut soon.  I think this is the 4th time in recent years.

well, that should double your motivation to ask for a raise!

[Monoriu]

We have pay scales.  Everybody with the same seniority and rank are paid the exact same amount.  The problem is that the entire pay scale is shifting toward the wrong direction

[DGuller]

You should work on increasing your seniority and rank then.

[Monoriu]

You should work on increasing your seniority and rank then.

I am working on it - my seniority increases every day 

[KRonn]

Looks like Congress is scrambling to find more cash for clunkers! Man the printing presses!!   

A couple of things though. Vehicles taken with this program need to be scrapped, destroyed. This seems a waste of materials, and vehicles, since some of these vehicles are still quite usable.  Spare parts that junk yards could sell are destroyed also. That was one concern that was voiced in an article I read earlier, the shortage of those spare parts.


http://www.msnbc.msn.com/id/32228179/ns/business-autos/

Congress trying to rescue 'cash for clunkers'
Lawmakers aim to pass $2 billion bill to keep rebate program alive

[DGuller]

I don't get why spare parts need to be destroyed.  Wouldn't destroying just the frame pretty much guarantee that no one could be gaming the system?

[KRonn]

I'm impressed by Mono's seeming bureaucratic competence.

Go ask for a raise.

We need more people like Mono to help run US govt bureaucracies more efficiently. Mono, maybe you could get a consulting job teaching efficient procedures.   

[KRonn]

I don't get why spare parts need to be destroyed.  Wouldn't destroying just the frame pretty much guarantee that no one could be gaming the system?

My understanding is that the cars are crushed. But it it's being done differently, the parts stripped first or something, that's better.

[Monoriu]

The vehicles must be destroyed, otherwise the system will collaspe due to abuse.  Imagine: me and the car dealer reaching a deal.  Me trade in the vehicle, gets the rebate.  He gets back the car, and sells it.  We split the rebate and the proceeds from the car.  From a taxpayer perspective, the money is spent, but the car that supposedly pullutes the environment still runs on the street, just by someone else.  The taxpaper pays but does not achieve anything. 

[KRonn]

The vehicles must be destroyed, otherwise the system will collaspe due to abuse.  Imagine: me and the car dealer reaching a deal.  Me trade in the vehicle, gets the rebate.  He gets back the car, and sells it.  We split the rebate and the proceeds from the car.

Right, and that was my understanding. I just don't know if there have been any changes where some spare parts can be removed. But yeah, that would get messy and allow a corruption of the program.

[DGuller]

The vehicles must be destroyed, otherwise the system will collaspe due to abuse.  Imagine: me and the car dealer reaching a deal.  Me trade in the vehicle, gets the rebate.  He gets back the car, and sells it.  We split the rebate and the proceeds from the car.  From a taxpayer perspective, the money is spent, but the car that supposedly pullutes the environment still runs on the street, just by someone else.  The taxpaper pays but does not achieve anything.

That's why I said that crushing just the frame would be enough.  You can't game the system if the frame is crushed, you're still take the car off the road.