The White House, Congress and the news media may be giving the “cash for clunkers” program high marks , but -- as with just about every government program initiated -- there are unintended consequences.

The Consumers Assistance to Recycle and Save Act of 2009 (H.R. 1550) – otherwise known as the Cash for Clunkers bill – would offer a voucher worth up to $4,500 toward a new, more fuel efficient that achieves a fuel economy rating of 18 miles per gallon or less for the old vehicle that has been insured for a year and is in "drivable condition."

Simply put, owners of old, gas-guzzling automobiles are getting more than four grand from the Feds if they trade in their clunkers for a brand new vehicle. One of the provisions of this taxpayer-funded give away is the destruction of the clunkers even if they are still functional. In other words, the government denial of $500 jalopies to young, first-time car buyers, who don't have wealthy parents, and those minimum wage workers whom liberals always claim they wish to help.

The car business is part of the trickle-down economy so vilified by progressives: A person buys a brand new car. Then within 3 to 5 years they trade it to purchase another new car. That 3 to 5 year old used car is then sold to person who wants a nice car, but doesn't want to take the hit on buying a new one. They drive it for 3 to 5 years then trade it or sell it.

That car is now 6 to 10 years old with 70k to 150k miles on the odometer. It is the perfect car for the person who doesn't have a lot of money or access to credit.

Well, thanks to Obama he is implementing a plan that will hurt the blue-collar workers, newly licensed kids, and others, who may not view the ownership of an expensive car as a priority. In addition, someone owning a 10-year old Toyota will not have to pay sky-high automobile insurance premiums since they will probably take out cheaper policies that only cover liability.

Car dealers, the people the "cash for clunkers" program was designed to help, told reporters that a lot of consumers who came into their showrooms did not fully understand the program, but that didn't stop them from taking advantage of possessing new cars with the usual chumps -- American taxpayers picking up the tab for the down payments.

On the other hand, these same dealers told these same reporters that they were concerned over whether or not the government would actually reimburse them for the discounts they gave customers. These dealers claim that they gave discounts to customers who traded in their supposed junk heaps for a big chunk of change -- between $3,500 and $4,500 -- toward the purchase of new cars and trucks. Continued...