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Late Thursday night Congress approved another $2 billion for the "cash for clunkers" program.
On the Democratic side, Senator Debbie Stabenow of Michigan said: "The reality is this is a program that has been working. Consumers believe it's working. People who make steel and aluminum and advertisers -- and everyone who's involved in the larger economic impact of the auto industry -- believe it is working."
On the Republican side, Senator Judd Gregg of New Hampshire said: "What we are doing is creating debt -- The bill to pay for those cars is going to come due on our children and grandchildren."
The government reported that $775 million of the original funds has already been spent, accounting for 185,000 cars and trucks being sold. The additional money will keep the program going until at least September.
The big three auto companies saw sales increase 45.3%, while Toyota, Honda and Nissan's sales increased 36.5%.
Car inventories are running low, which means that the auto manufacturers and all their suppliers will need to get cracking to get more cars in dealers' lots as soon as possible. This will help keep auto workers employed and keep auto suppliers also on the job.
Who knows? It may be just the right medicine for a sagging economy.
Do you agree with this program?
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Reader Comments (Page 1 of 1)
8-07-2009 @ 9:09AM
JP said...
Do I agree? Nope!!!! You're just delaying the inevitable. It's great for the short-term, but when the program runs out, the problems we started with will be back and people will be asking for Clunckers part 2, part 3, etc. It's a short-term fix, not a solution! Our politicians are idiots!
8-09-2009 @ 2:47PM
Vince said...
A band-aid on a bullet wound.
Not a smart move to put an already in-dept American deeper into debt when they are about to lose their job as we are in the beginning of a Greater Depression. Commercial Real Estate is collapsing right behind residential. Just watch now as the Derivatives market is collapsing behind closed doors July 15 - Aug-15. and foreign investors unravel the use of the dollar as we speak. The dollar will collapse bringing hyper-inflation and the collapse of the entire economic system by early November.
What they are doing is a desperate attemt to prop it up and buy time.
8-10-2009 @ 7:43PM
doctordawg said...
Did they REALLY just sell a quarter million cars under this program ($1 billion divided by $4500)?
Will they really sell 666,666 NEW cars when they renew the program with $2 billion more?
Something's fishy.