So much for Cash for Clunkers. The Wall Street Journal reports:
The U.S. government plans to temporarily suspend its “cash for clunkers” incentive program because Obama administration officials believe its $1 billion budget has been exhausted after just one week, said several congressional officials.
Department of Transportation officials contacted lawmakers offices Thursday evening to inform them the program would be put on hold as early as Friday, these people said.
The program, which offers rebates of up to $4,500 to consumers who trade in old vehicles and buy new, more fuel-efficient models, was launched July 24 and sparked a surge in car sales.
“It was an absolute success,” said Michael J. Jackson, chief executive of AutoNation Inc., the U.S.’s largest chain of auto dealerships. “There’s a very compelling case the government should put more money into it. It’s a great stimulus to the economy.”
I wonder how many Americans who took advantage of this program had no car payment before. I hope they can afford those shiny new car payments.
I believe Dave Ramsey called this plan “idiotic.” We have people driving around in “clunkers” and apparently cannot afford to buy a car at this time (at least in some cases), so the government gives them incentive to go buy one anyway. On a completely unrelated subject, what caused the economic crisis?
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