Capital Commerce

Cash For Clunkers Was Massive Corporate Welfare

October 8, 2009 RSS Feed Print

The AP on the cornucopia of deals for consumers out there:

Great buys are not exclusive to retailing. The government's Cash for Clunkers program is over, but more than half of car buyers still get a cash rebate, according to J.D. Power & Associates.

The problem is, consumers don't seem to be biting at the current rebates—things are likely to get worse for GM, for example, long before they get better.

So what did Cash For Clunkers accomplish? It was a short boost in car sales that helped car companies offer a few more deals than they otherwise would. Who gained? Not the broader economy—car sales have since come crashing back down.

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It's too bad that we haven't learned our lessen yet,
You can't buy your way out of a recession that you bought yourself into.
The age of a consumer based economy has been over for 40 years. We have been living in a debit based economy and China is buying!
In the world system, remember the golden rule. He who has the gold makes the rules.

joe of CA 9:42AM October 11, 2009

Problem is, with modern lobbying, EVERYTHING passed out of Congress is usually corporate welfare---one way or another. If, for any reason, a bill is proposed that is not corporate welfare, you'll see super-slick ads on TV against it before it is even enacted.

Muser of NM 3:52PM October 08, 2009

Cash For Clunkers Was Massive Corporate Welfare

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