The “Cash for Clunkers” program may be the most creative policy initiative we have seen come from government in a long time. The effect is dynamic and the implementation is simple. For there to be opposition to this bill is mind boggling. In 2003 we saw Bush and his Republican allies pass a tax break (between $75,000 and $100,000) for businesses who purchased a vehicle that weighed 6000 pounds or more. I’m sure a lot of these vehicles are being traded in for the current “Cash for Clunkers” program. The two mindsets are diametrically in opposition and represent the backward thinking of conservatives and the forward imagination of liberals. This 2003 bill encouraged American automobile manufacturers (or at least reinforced their misguided production strategies) to crank out big gas guzzling vehicles. The collusion between the two ended up being a Faustian bargain that would ultimately cripple the American automobile sector.

America’s addiction to foreign oil is unpatriotic. Think of the nations in the world who have oil as the centerpiece of their economy. Saudi Arabia, Venezuela, Nigeria, Iran and Russia are just some of these petroleum dominated authoritarian states. As the price of oil has risen these nations have become less democratic. The money derived from the production of oil has made the governments of these states less dependent on taxation from its citizens. If a government does not have to rely on public excises to run its nation, it is less likely to grant its citizenry representation. This is happening across the board in these states. And these countries interests are becoming more in opposition to our own.

The United States makes up about 3% of the world’s population but we use 25% of the world’s energy. We are a bloated energy hog. The fact that we use such a significant amount of fuel creates a dilemma as South and East Asia emerge from their slumber. It makes it harder for the US to restrain the energy needs of India and China when all they are doing is attempting to become us.

Sending a signal to those outside our country is just a byproduct of this program. The car initiative does so many things at the same time. It brings gas guzzlers off the road and replaces them with energy efficient cars. This not only reduces the amount of gas we use but also reduces our carbon footprint. It also serves two purposes in regard to the automobile industry. It obviously boosts sales but it also helps validate the need of these companies to produce cars that get better gas mileage. But perhaps the greatest thing the “Cash for Clunkers” does that isn’t talked about is the psychological dimension. Everyone is aware of the rationale for the program and clear thinking Americans are seeing that the nation is moving away from large cars. It is rare when government positively alters the imagination of the nation and rarer still when government comes up with a program that does so much for a relatively small amount of money.