(Another post of the wisdom of my father.)
The Law of Unintended Consequences is one law that Congress cannot change or ignore, they are forced to accept its effects. My question is simple, ‘Do they understand the ramifications and accept them when they pass legislation or are they oblivious to it?’
In the Cash for Clunkers bill they have created a number of consequences. Which ones were planned or anticipated?
Did they truly want to eliminate 750,000 serviceable cars from the used car market? Don’t they care about people who cannot afford to buy a new car and who would be proud to buy a newer or their first used car for less than $3,500? Many people who are seeking their first or next job at or near minimum wage could use one of these cars to get to work and to get to the grocery store.
Did they think of the car mechanics who service these cars and who will no longer have adequate employment opportunities?
Did they consider the impact on used car dealers when they remove 750,000 useable/drivable cars from their potential inventory?
Did they think about the effect of announcing to the world of less than honorable people the cheapest and best way to destroy an engine?
Was the motivation to build the business of GM artificially to make it easy for the government to sell its shares to the public before the real world of sales begins again? Since some portion of the buyers have simply accelerated their purchases, what will happen to new car sales over the year following the program?
I want to believe that these consequences were not planned for, but, if the people we trust to legislate did not think of them, are they competent to be in that position? If they did think of these things and still wanted to spend $3 billion of our money on this program, what does this tell us?
If this is the effect of The Law of Unintended Consequences on a simple program involving trading in old cars for new, what will the effect be on a complete overhaul of 20-25% of our economy by the healthcare bill now in Congress (HR3200)? Without a full public debate and lengthy hearings and careful reading of the final bill can anyone truly support it?