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Columbia Missourian

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

By Roseann Moring
August 26, 2009 | 11:01 a.m. CDT

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?