I listen to "The Morning Briefing" on XM each morning as I drive to work. This morning, they were interviewing Rep. Pete Hoekstra of Michigan, and he was complaining about how long it was taking to get dealers their CARS (i.e. "Cash for Clunkers") rebate checks. Now, leaving aside for the moment that this complaint was probably so much posturing for next year's governor's race in Michigan, and also leaving aside the fact that Rep. Hoekstra appears to be both against spending, and against delays in spending, I would like to ask this question: How long does it take to pay a bill?
Most companies I work with pay on a "net-30" or even "net-60" basis. One major corporation actually has a "net-90" policy. That means they do not pay the bill until 90 days after they get it. The CARS program was put into place on July 31. It's now August 25th. That means the longest a bill could possibly be outstanding is about three weeks. I guarantee the dealerships involved have "net-30" payment policies for invoices, maybe more. In response to concerns raised by Congress, among others, the government has hired more people to process claims and is extending the deadline for rebate submission (the latter in response to problems with the website dealerships are to use to submit claims). All of this has been done within the first few weeks of the program. Most private companies would be proud to move so fast.
Rather than being an example of inefficiency and ineffectiveness, the CARS program has been a model of government action and solutions. Each issue that has been reported is a manifestation of a lesson learned, not a new and persistent problem.
- Too Much Paperwork - The reason the government requires a lot of paperwork is to prevent the fraud and lack of accountability perceived to be present in other stimulus measures. I guarantee you that without these strict reporting requirements, Republican Congresspersons would be out in front of the camera with numerous examples of fraudulent CARS claims, as proof-positive that the government is bad. Of course, when requirements are put in place to prevent fraud and abuse, it's "too much paperwork." The Republicans in Congress aren't looking for a solution, they're just looking for something to criticize. It should be noted that we have yet to see a dealership claim that the paperwork was too difficult and therefore they will not be participating in the program, clearly, the rebates are worth the paperwork to them.
- It Worked Too Well - Remember the brief debate over expanding and extending the program from a few weeks ago? The argument the Republicans raised at that time was that the program must be a failure because it ran out of money. The program was too successful. Think about that for a moment, the criticism was that it worked. Of course, that's a problem for anti-government Republicans.
- Payment Delays - This is the most unreasonable of criticisms, as I note above. You and I sometimes wait a few weeks to pay our bills, just to make sure they're accurate and we have the money in our accounts. It's perfectly reasonable to expect the government to verify all the paperwork to avoid fraud before cutting a check, and it's reasonable to give the government more than three weeks to do that, considering the scope, size, and criticality of this program.
The reason that many Republicans have been grasping at straws to find something wrong with the CARS program is that the CARS program is, and has been, a wild success. It proves the power and efficacy of the government when focused and managed by a party that actually cares about making Government work.
If the CARS program is successful (and it is), it proves the government can create a new program from scratch, run it nationwide, and do it well, in a matter of weeks. If the government can do that, why not a public health insurance program?
Why not indeed?
(Crossposted from Leesburg Tomorrow.)