advertisement

Today's question: How effective was the 'cash for clunkers' program?

Wednesday, August 26, 2009 | 11:01 a.m. CDT; updated 8:30 p.m. CDT, Sunday, August 30, 2009

The "cash for clunkers" program was the focus of much of the debate about the stimulus package.

Officially known as the Car Allowance Rebate System, the program gave people a rebate of a few thousand dollars to get rid of old cars in favor of newer, gas-efficient models. Congress found the program to be so effective that it extended the appropriations from $1 billion to $3 billion.

Car dealerships in Columbia found the program increased car sales — but they also said the rules could be confusing and difficult to navigate. One dealer had only been reimbursed for 25 of his 375 sales.

Proponents cited the 457,000-plus transactions and the increase in car sales. But some say the boom now means a decrease in car sales later. And many people have criticized the amount of government spending in the stimulus package as a whole.

Sen. Claire McCaskill, D-Mo., and Rep. Blaine Luetkemeyer, R-Mo., voted no on extending the program. Sen. Kit Bond, a Missouri Republican, voted yes.

How effective was the Cash for Clunkers program? What lessons should lawmakers take away from this for other stimulus programs?

 


Like what you see here? Become a member.


Show Me the Errors (What's this?)

Report corrections or additions here. Leave comments below here.

You must be logged in to participate in the Show Me the Errors contest.


Comments

jw henry August 28, 2009 | 12:35 a.m.

Generally, trade-in vehicles must get 18 or less MPG (some very large pick-up trucks and cargo vans have different requirements)

Henry
Blogger
www.cashforclunkersfacts.info
http://www.cashforclunkersfacts.info

(Report Comment)
Ayn Rand August 28, 2009 | 12:43 p.m.

I wonder how many participants realize that the rebate is taxable.

(Report Comment)

Leave a comment

Speak up and join the conversation! Make sure to follow the guidelines outlined below and register with our site. You must be logged in to comment. (Our full comment policy is here.)

  • Don't use obscene, profane or vulgar language.
  • Don't use language that makes personal attacks on fellow commenters or discriminates based on race, religion, gender or ethnicity.
  • Use your real first and last name when registering on the website. It will be published with every comment. (Read why we ask for that here.)
  • Don’t solicit or promote businesses.

We are not able to monitor every comment that comes through. If you see something objectionable, please click the "Report comment" link.

You must be logged in to comment.

Forget your password?

Don't have an account? Register here.

advertisements