More “Cash for Clunkers” Nonsense From Obama Stimulus Gimmickry
September 2nd, 2009
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In a previous post I dubbed the Obama administration’s “Cash for Clunkers” program as really being “economics for dummies.” The sales results tabulated by Bloomberg for the period of July 27 through August 24, coinciding with the implementation of “Cash for Clunkers,” exposes the banal irrationality of this taxpayer-subsidized boondoggle.
The program actually did stimulate auto sales-for Detroit’s foreign competitors. Toyota, for example, saw an increase in car sales of 6.4%. Among domestic manufacturers, however, only Ford saw a gain, rising by 17%. But what about Chrysler and General Motors, which are only still in business due to government financed life support.?
Even with “Cash for Clunkers,” Chrysler sales dropped by 15% and GM sank by 20%. And this is supposed to have been a “successful” economic stimulus program? If so, what in God’s name would have been considered a failure?
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