What’s the Deal on Cash for Clunkers AKA Car Allowance Rebate System
ByWhat’s the Deal on Cash for Clunkers? Car Allowance Rebate System (CARS).
Magic Government Dollars?
Someone else had reservations just 3 days ago http://www.associatedcontent.com/article/1996192/cash_for_clunkers_program_2009_incentive.html?cat=3
The program officially just 6 days old was overreached last night July 30th. Now call me skeptical, but something is rotten and it’s not in Denmark……. I took a drive looking for new temporary license tags just here in Arkansas and looked at the lots that still exist. For the area I surveyed, I saw 5 clunkers traded in and marked same. I saw no new temporary tags on brand new more fuel efficient cars and I was out for over 4 hours around the state. So I got to thinking….
Let’s start with the original $ 1 billion funding source. Let’s say every car traded in received the full allotted $ 4500 credit. So that would mean 222,222 cars sold in 5 days. This averages 44,444 cars sold per day and averaging 888 per state each day. Why don’t I believe this? Where are all of the 222,222 clunkers right now? Could a scrap metal processor or salvage yard weigh in here and report if they have a significant increase of clunkers received or notified ready to pickup for destruction or new destinations?
And now Congress has apportioned off another $ 2 billion in funds for Cash for Clunkers, that may be used up within 10 days or less? http://www.politico.com/news/stories/0709/25662.html
This program was in arrears within 5 days, can’t wait to see what will happen with Health Care?
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As with most government programs, the success of the “cash for clunkers” program is not measured in how well the consequences of the program align with the stated goals of its advocates. Nor is it measured by any economic impacts the consequences might cause. Instead, just like the example of the public library in George Dance’s recent article about Booze and books, the success is measured by participation or usage, not by any measure of the value provides or harm it does to our economy. The trick is to define the program specifically so that it has a known demand so the usage is high. Media spin and politics will make sure the right people hear the program was successful and beneficial. I heard a bit on NPR just today about the downstream benefits that recycling all these old cars has. Ridiculous of course, but the perception amongst the voters is far more important than the actual results and consequences. Certainly there will be follow-on programs, cash for major appliances, cash for tools, etc.
Thanks to all. This is great info to me.
Great Job Here?I enjoyed it..! Gary
Keep up the good work, another informative post.