Alan Greenspan says no: “It’s an interesting issue. I mean, I have qualms about the concept, but there is no doubt that that very extraordinary response is a very important indicator that the state of confidence in the economy is beginning to pick up. If we had been — the clunker program had been put in place six months ago, it would have probably been a dud.” FoxNews reports, “Greenspan said that the program has worked to get people to buy cars and move stock, but he wouldn’t necessarily recommend …
Celebrating the fact that his administration has blown through $1 billion in deficit spending on the “Cash for Clunkers” program in just one week, President Barack Obama said Friday: “I’m happy to report that it has succeeded well beyond our expectations and all expectations.” And just what exactly has the “cash for clunkers” program succeeded at? Cash for Clunkers Has Not Helped the Environment: Thanks to the inclusion of SUVs and small trucks in the program, you could, in theory, trade in a Hummer that got 14 mpg to get …
The $1 billion “Cash for Clunkers” auto bailout Congress passed last June has run out of cash after one week. The House of Representatives is already readying a bill to pump another $2 billion into the program, setting a new land speed record for expanding foolish programs. There are so many valuable lessons to be drawn from this sorry episode it’s hard to know where to begin. But the most important is the clear warning it sends for health care reform. The Cash for Clunkers program is pretty simple. The …
Cash for clunkers is working. Too well, in fact. The $1 billion program that offers $3,500 to $4,500 rebates to turn in your old vehicle to purchase a new, fuel-efficient one. The billion dollars is projected to run out much more quickly than previously thought, and while it’s a great deal for a new car, the program isn’t running too smoothly: Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns about large backlogs in the processing of …
If you watch television you’ve seen the ads: “So bring in that old jalopy and get up to $4,500 towards the purchase of a new or select used vehicle. That’s right, get up to $4,500 for that old piece of junk, plus you keep the rebates. You have to hurry! Since funds are limited for this program it’s first come, first served!” Well, we’re about to find out just how limited those funds were. The Obama administration’s cash-for-clunkers program has been such a “success” that in just the first week …
After passing in the House, the stage is now set for a Senate vote to pass the “Cash for Clunkers” bill that would offer up to $4,500 to trade in a used vehicle for a new one. Although the idea sounds good on paper, we’ve outlined a number of problems with the bill: Consumers typically replace clunkers with slightly newer clunkers or used cars, the program would distort the used car market by reducing the supply of used cars at a time when demand has been increasing, the voucher exceeds …
Both the Senate and the House of Representatives are seeking to pass “Cash for Clunkers” legislation that would have three primary objectives: increase car sales, improve the environment, and stimulate the economy. The bill would provide consumers with a voucher (up to $4,500) to purchase a new vehicle to completely scrap the old one. The Associated Press gives a good summary of the House and Senate versions. Although the bill passed today in the House, cash for clunkers is full of problems and unintended consequences:
Today, the Senate could pass a Food and Drug Administration bill that would grant the agency new authority to regulate tobacco products. Slipped into that bill is a newly introduced amendment that would, for one year, attempt to boost car sales and reduce carbon dioxide emissions: Sens. Debbie Stabenow, D-Mich., and Sam Brownback, R-Kan., introduced an amendment Tuesday that would set up a program that allows consumers with older, less fuel efficient vehicles to trade in their “clunker” for a voucher worth up to $4,500 toward the purchase of a …
