Cash For Clunkers Was Massive Corporate Welfare

But the rebate program didn't solve auto woes.

By SHARE

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.