The Cash for Clunkers Program
Facts about the Federal CARS program (Cash for Clunkers)…
Congress has recently passed the “Cars” program. Or, rather as it’s known better as the “Cash for Clunkers” bill. Which basically gives you up to $4000 for an old car that you’ve had insurance on for a minimum of one year. But this is only in trade in value, meaning that you could take your own car in for up to $4000 off a new car. Not a totally bad plan.
At first the number one selling car was the new Ford Focus. Then after two weeks went by it’s all Toyotas and other foreign automobile making companies that are high on the list. Chrysler didn’t even make the top ten list for companies selling cars, even with the Government’s rebate, and dozens of Chrysler’s own, they were practically giving these cars away and still no one wanted them.
The idea of the bill wasn’t bad. I would have made revisions to it myself, though. If this really was a plan to boost the economy, than only cars that were manufactured in the U.S should have been eligible for $4000 off at the dealerships. If not then what we really did was give these other countries billions of our own dollars and economic stimulus for free, and we got nothing in the end.
I understand the positive effects this bill had on the environment, but trees aren’t as important as jobs are right at the moment. The economy should come first on the list of priorities, not green-house gases and global warming. There will be a time for that later, when everyone has work, and the government can afford to throw money at trees.
The other thing I would have changed is the one-year insurance deal. Without that, people would be buying their neighbor’s car for a trade-in. which would have provided even more economic stimulus. That car that’s always in the parking lot with the “for sale” sign would be sold to someone wanting to trade it in, rather than waste away in a lot and risk being stolen. That’s a dollar being spend more than twice, someone sells their car, the buyer gets a loan and helps the bank, and the dealership sells a new car, than the factory builds another one. That’s how you create jobs.
I would probably rate this bill a 6/10. Which isn’t bad considering what congress has been passing lately… at least this money somewhat goes to Americans.