Actually, the program was a sucess...it got clunkers off the road and replaced them with more fuel efficent models......and put hundreds of auto workers back to work......it did "save" and/or "create" jobs....latest reports said it more than tripled the repayment in tax revenues......
...here's another positive side effect of the program...do you know what pig-iron is?????
this program put more pig-iron back into circulation and revised the steel industrial with low cost material for US markets
Economists from a Texas University, take data from Texas and extrapolate it to the entire country and reach a conclussion that fits the conservative narrative and Baggers grab onto it with both hands. But Climate change science and evolution is just a theory. LOL
Oh those pesky facts always get in your way.
Talk about your economic lemons: As the country emerged from the recession, a federal stimulus program cut auto industry revenue by about $3 billion in less than one year, according to new research.
The “Cash for Clunkers” program in 2009 aimed to boost the economy and help out the environment by creating a monetary incentive for consumers to trade in older vehicles for new fuel-efficient models. Buyers could receive a credit of up to $4,500 when they bought a new vehicle with better mileage.
But rather than investing in pricey hybrids, many buyers opted for relatively cheap and small cars, such as Toyota’s Corolla, which was the No. 1 choice during the program, economists with Texas A&M University wrote in “Cash for Corollas: When Stimulus Reduces Spending.” The program ended up cutting industry revenue by around $3 billion in under a year, the researchers estimated.
“This highlights how – even over a relatively short period of time – a conflicting policy objective can cause a stimulus program to instead have a contractionary net effect on the targeted industry,” researchers wrote in the working paper from the National Bureau of Economic Research, a Cambridge, Mass.-based organization. “By lowering the relative price of smaller, more fuel-efficient vehicles, the program induced households to purchase vehicles that cost between $4,000 and $6,000 less than the vehicles they otherwise would have purchased.”
The government spent $3 billion on the program, which did speed up buying during its two-month duration. But looking at sales in the following months, there was no net increase in vehicle purchases, researchers found.
By making a cash deal instead of a trade in I saved $1,500 and kept my old car. Look at the window MSRP price, usually there is an added 10 to 20% increase in that price so the dealer can offer you more money for your trade in. So many buyers ain't smart.
You just hit the nail right on the head, rdietsche14. It just stands to reason that farland is just a troll whose 'ONLY' life, what's left of it, is this board.
I have never witnessed a more dysfunctional person on the yahoo message boards than him. The only thing that separates him and that other moron that spams the GE board claiming to be a millionaire living in a penthouse in Florida, is that one is actually insane.
Who ever came up with the idea of cash for clunkers is just another example of idiot reps we elect. What was shocking is the number of idiots that fell for this.-automatic $4,000 trade in. In most cases an individual buying a new car and not having a trade in could get a bigger discount in most cases a discount of 10 to 20%. Now it may have been a good deal for people that had terrible credit. Why? Bank will loan you based on window price if you have made a good down payment. The trade in, $4,000 was usually enough to qualify for the car loan. I bought a new car recently with out a trade in and the cost was a little over $6,000 below window price. Cash for clunkers was a rip off. MO.
longpickupttruck: Obviously you haven't bought a new car for some time. Even with the cash for clunkers program, the buyer still had the opportunity to barter for the price. It was not a an Automatic $4000.00 trade in deal. The deal hinged on other variables. One good thing about the program it got many gas guzzlers off the highway which in turn reduces demand. Oh I know, you Cons are saying, "don't tell me what gas guzzler I cannot buy." Then you idiots complain about the price of gasoline. By the way, gas prices are down compared to last year at this time.