On Weds June 24th President Obama signed the much debated “Cash for Clunkers” bill which in summary allows a buyer to trade-in his/her old gas-guzzler for a new more fuel efficient ride and get up to $4,500 in a voucher toward the purchase price of this new vehicle. The program will now be known as Car Allowance Rebate System (CARS). There was opposition on all sides to this bill. The environmentalist felt the bill did not go far enough to improve fuel economy. Cash For Cars Sydney
They pointed to the fact that one of the new vehicles that qualified was the Hummer 3. The automotive industry supporters feel that more that than the $1 billion that has been allocated is needed to jump start the car sales. This amount would allow approximately 250,000 consumers to participate in the program. Note, the original Cash for Clunkers bill had a $4 billion price tag. And of course, there are many who feel we have spent enough of the tax payers money to bail out the automotive industry. About $60 billion has been allocated so far, what is another billion.
OK, it is now time to move on and stop the “Why this program will not work and is a waste, etc”. This program can do some good. How many things have come of out Washington lately that will actually stimulate consumer spending? In all the bailout money what can we really point to that has helped we understand. The Cash for Clunkers program will stimulate car buying and has shown to do this in Europe, proving to be very successful. The American people can understand this program and will get factual results on how it is doing. American’s understand car sells numbers.