Cash for Clunkers a success
How many recent government programs can you point to that have worked - I mean really worked?
Think about that for a minute.
Put down your TV remote (unless your're watching "Ice Road Truckers") and mull that one over. Because nothing much comes to mind for me. They tried to help U.S. banks by funneling scads of money to them in hopes that they'd begin giving out more loans again. But credit's still about as tight as it's ever been.
And then there's the government's strategy to provide big stimulus money for infrastructure projects throughout the nation. Well, I've yet to see much happening there either. But this Cash for Clunkers thing really took off.
The program, which ended Monday, offered car buyers rebates of $3,500 or $4,500 for trading in older vehicles for new, more fuel-efficient models. Ever notice how some of the best ideas are the simplest ones?
From the second it was announced, it was obvious were going to be lots of takers. And aside from the fact that the criteria was slightly tweaked early on - which prevented some vehicles from conforming to the government's "clunker" standards - this program went really well.
How well, you ask?
Transportation officials said through early Monday, dealers had submitted 625,000 vouchers totaling $2.58 billion. Yes, that's BILLION with a B. Dealers are still waiting to be paid for their participation in the program, and I have no doubt that they will be paid because this has given the auto industry - and our economy as a whole - a welcome boost.
So I say bravo! It looks like the government finally got something right.
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Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.
Your hosts:
Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
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Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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Your hosts:
Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
Kevin,
Are you serious ? Ha, ha, ha.
Just because people happily accept government hand-outs, does NOT automatically make the program a "success."
Taxpayer money should not be spent in this fashion. The money should have been returned to the American people in the form of a tax cut, enabling them to invest it, save it, or spend it as they individually see fit.
After all, that would stimulate the economy.
Also, the auto retailers are STILL WAITING to be re-imbursed by the feds.
You wrote that you have "...no doubt they will be paid because this has given the auto industry - and our economy as a whole - a welcome boost."
What ???
The fact you believe it has been successful is the reason that the feds will reimburse the auto retailers ?
That's non-sensical.
For instance, if you believed the program was "unsucessful" would you then be asserting that the auto retailers whom sold cars via this program would probably NOT be receiving reimbursements from the feds ??
Also, in the next couple of years, we may be seeing a lot of defaults on the autos bought via this program. The reason is that many of the people whom took advantage of the program may not be able to keep up with the monthly payments.
Look, if a person couldn't afford a $300 monthly payment for a new car BEFORE the 'cash for clunkers' program, how can they really afford a $270 monthly payment for the next 3 years ?
It's a similar premise which led to the housing foreclosures via the sub-prime loans.
In essence, people whom realllly couldn't afford to meet those monthly payments for homes, were being given the keys to the house anyway....and how'd that turn out, Kevin ?
A car purchase is not a one time cash transaction at a cash register, say, as it is for a loaf of bread.
Rather, it's a contract to pay "X" number of dollars for each of the next 36 months.
Kevin Smith,
In the future, please do not try to "spin" the monthly unemployment statistics on behalf of the Obama Administration.
You are a journalist---not an Obama Administration political hack. (on second thought, maybe you're...)
A couple weeks ago, you tried to "spin" the quarter million jobs that were lost in August by claiming that it was "substantially" less than what was predicted for the month.
It turns out that "substantially" was a mere 7,000 fewer than what was predicted for the month.
I'm sorry, Kevin, but within the context of a nation of 300 million people when a quarter million jobs have been lost in a single month, "7,000 fewer" simply does not meet the definition of "substantially."
...and you call into question your own credibility by even attempting to make such a characterization.
We all know you voted for Obama, but please, at least try to pretend you're not a shill.
It doesn't sound like you have a business/economics background.
Most journalists have never worked in the private sector where they are faced with cost-benefit decisions, and they've never directly faced payroll decisions, overhead expenses, or the consequences of high taxes and regulation.
As a result, they just don't "get" it when they write their puff pieces cheerleading on behalf of big government.