Monday, August 17, 2009

Stiffing the dealers

You know, the Cash for Clunkers program. Congressman Joe Sestak says that the government has paid the vouchers on just 2% of the claims sent in by the dealerships.
The federal government has only reimbursed auto dealers for 2 percent of the claims they've submitted through the popular "cash for clunkers" program, a Pennsylvania congressman said, calling on the Obama administration to help speed up the process.

Rep. Joe Sestak, D-Pa., called for "immediate action" to address the problem in a statement Sunday, after writing a letter to President Obama Saturday expressing his concerns.

In the letter, Sestak said only 2 percent of claims have been paid and that four of every five applications have been "rejected for minor oversight."
That's atrocious.

Arguments can be made that the bureaucracy set up wasn't prepared for the massive interest in the program, and that it's just a matter of time before the claims are paid. That is, if we give the administration the benefit of the doubt.

An argument can also be made that the administration should have had the bureaucracy in place, firm rules, and easy to understand forms ready to go when the program kicked off. It really didn't matter which month they started the program. Waiting till the downstream parts were ready should have made a lot of sense. This is, as I understand it, a 3 billion dollar program that any number of competent accountants should have been able to handle.

Taking the argument a step further, we can argue that an administration that couldn't competently handle a 3 billion dollar car give-away has no business proposing a trillion dollar healthcare package. There's no reason why the administration can't slow down, get it right, make sure everything is in place and ready to go. There is no reason to rush on trillion dollar health care if they can't successfully run a 3 billion dollar car program.

1 comment:

Anonymous said...

Medecare is in a shambles and the One even admits the Post Office can't compete. Why should we trust the Fed.gov with anything any more?

Wouldn't it be wonderful if these boobs actually read the Constitution and obeyed it?

Dreamin' here, Boss.

Gerry N.