Reply With QuoteWe have a have the same sort of thing over here in the UK,
The logic of which escapes me
Cash for Clunkers
Okay I grant that part of the idea for the cash for clunnkers is to make the air clean for everybody. But mainly it is to "stimulate the economy" and to help the automobile makers (on top of the bailout money).
So everyone that can hobble into a dealership with an auto they have owned for a year, can get a $4,500 credit toward a new auto? How is this a.) legitimate use of taxes of the entire public and b.) fair to every tax paying citizen?
My wife and I own two automobiles, both paid for in cash when we bought them, and we are perfectly happy with them right now. The way I see it the Feds owe me about $9,000 in cash, or check, which I will be looking for in the mail this week.
We have a have the same sort of thing over here in the UK,
The logic of which escapes me
Sums it up !!!
http://www.cnbc.com/id/32239580
I should have mentioned that BOTH our autos are Fords, made in the USA, and Ford is one automaker who has not (yet) accepted stimulus money from the Feds. If the other US automakers had been making reliable, and economical to operate automobiles that would still have resale value after 5 or 6 years, perhaps they would not have had to ask for bailouts, and "cash for clunker" Federal charity, from the Taxpayers of this country. Since taxpayers are not bailing out other industries like schools, engineers, boat makers, house builders, general contractors, etc etc....why should automakers get our tax money? Grrrrrrrrrrrrrrrrrr!!!
Originally Posted by commanding
Because the unions were enormous contributors to Obama's campaign. Now he's paying them back, with your money.
Its better than Bailout for sure......cheaper and effective !!!
http://money.cnn.com/2009/08/03/news...ion=2009080311
This program is actually a copy from the German stimulus program (called "Abwrackprämie") that has helped European car makers to boost their sales. It has had a huge impact. VW, for instance, would have been in the reds without this program. It helps the car makers and suppliers under difficult cirumstances not to fire employees who in return would ask for govermental help beeing jobless. Furthermore it makes the US more independent from Arab oil. The only downside is the fact that second hand cars salsmen and garages will suffer from this.
I wonder how many old British cars have been traded in for new VW's
By 2010 Ford will have 40bn dollar debts even with the recent program while GM and Chrysler restart their business. At the end, Ford will not be the good one. Ford is only facing bankruptcy later.
I will never buy a Government Motors car or a Chrysler Government subsidized car...I will, on my word, only buy from a manufacturer that is not openly slave to the Government bond holders and the Democrats who are wholly owned subsidiaries of Global Warming Gore-Bot Lunatics Inc.
Thus, my next cars, for the rest of my life, will be Fords.
And if Ford get subsidies? Toyota?
1 Billion set aside for this program- they "ran out" of money in about a 3 days, and less than 1/5th of that money spent on actual cars, and with the majority spent on mismanagement and misuse.
And you would trust them for what?
Of course Congress is justified in increasing the deficit and spending tax money so that the auto industry can make a lot of money.
Comparing this to the German Abwrackprämie ... are you forced to buy an American made car? Are you forced to buy a more environmentally friendly car?
Because, in the German version, plenty of people but non German cars, essentially funding other nations auto-industry, as well as letting perfectly functioning cars being scrapped (thus lack of the environmental benefit).
No, yes. (Or, relatively. You don't have to buy a Prius.*)
Cash for Clunkers is considered a successful program because the economic stimulative effect is far exceeding the amount of money being input into the program.
If you're against any and all economic stimulus program in a recession, then you're still going to be opposed to Cash for Clunkers. If you recognize that stimulus can be a valuable tool to mitigate the effects of a massive downturn in the economy, then a program that has a very big multiplier in terms of the amount of money that actually enters the economy is a good thing -- not to mention the pretty decent chunk of change entertaining state government coffers.
And yes, when people use it to buy foreign cars, the multiplier effect is much smaller. But protectionism is currently considered a big no-no in this country (and most of this world.)
*God I hate those commercials. I keep hoping the Prius runs off the road and crushes dozens of little children in creepy costumes.
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