Cash for Clunkers revisited

July 10, 2017

One thing that made it harder for a while to buy a used car was Obama’s “Cash For Clunkers” program. That was the recession-era attempt to jump-start the economy, shore up the auto industry and help the environment by giving Americans taxpayer money to trade in their older cars on newer, cleaner models. It was the ultimate example of the Keynesian economics beloved by liberals: using government money to stimulate the economy.

Now, a detailed study of the results has been released by researchers at MIT and Texas A&M. It found that “Cash For Clunkers” was a clunker itself, failing on every level. It didn’t stimulate the economy, it was a costly and inefficient way to reduce carbon emissions, and it had no impact on auto sales in the short term and a negative impact longterm. This isn't mentioned, but the older cars were destroyed, which also depleted the inventory of used cars usually purchased by poorer people. So it cost a lot, made matters worse and hurt the people it was supposed to help. It truly was the ultimate liberal government program!

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Comments 1-1 of 1

  • Ryan Swan

    07/10/2017 12:21 PM

    Just yesterday I was talking with my dad about this program. If we have such a huge respect for nature and resources, why the he** would we destroy such "still operable" resources...blatant hypocrisy. And yes, that action was equivalent to a giant middle finger to the poor. The used car market, whether on the street or at a dealer, is massive. Nobody called Obama out on this tremendous waste...

Cash for Clunkers revisited

July 10, 2017

One thing that made it harder for a while to buy a used car was Obama’s “Cash For Clunkers” program. That was the recession-era attempt to jump-start the economy, shore up the auto industry and help the environment by giving Americans taxpayer money to trade in their older cars on newer, cleaner models. It was the ultimate example of the Keynesian economics beloved by liberals: using government money to stimulate the economy.

Now, a detailed study of the results has been released by researchers at MIT and Texas A&M. It found that “Cash For Clunkers” was a clunker itself, failing on every level. It didn’t stimulate the economy, it was a costly and inefficient way to reduce carbon emissions, and it had no impact on auto sales in the short term and a negative impact longterm. This isn't mentioned, but the older cars were destroyed, which also depleted the inventory of used cars usually purchased by poorer people. So it cost a lot, made matters worse and hurt the people it was supposed to help. It truly was the ultimate liberal government program!

READ MORE

Comments 1-1 of 1

  • Ryan Swan

    07/10/2017 12:21 PM

    Just yesterday I was talking with my dad about this program. If we have such a huge respect for nature and resources, why the he** would we destroy such "still operable" resources...blatant hypocrisy. And yes, that action was equivalent to a giant middle finger to the poor. The used car market, whether on the street or at a dealer, is massive. Nobody called Obama out on this tremendous waste...