Reports are now coming out that the Cash for Clunkers program is going to run at least through the weekend.
Congress Passing Additional Funding for Cash for Clunkers
The Democratic-heavy Congress is rushing to push through a reported $2 billion in extra funding before the August recess.
Naturally with any “breaking” news there is going to be a lot of misinformation. One of the spokespersons for the government said they were surprised to see reports that the program was out of money. They said there was still $780 million left out of the original $1 billion.
That’s a far stretch from being completely out of cash. Of course dealers are saying they have a bunch of extra transactions sitting in the wings waiting on their deals to get pushed through.
Should Congress Rush to Push Through Funding?
This is where I have a problem with government programs like these. There are mixed reports as to how much money is left. Yet Congress wants to hurry up and push through $2 billion more in funding. As if they are giving out candy to the American public.
“But the program is working!” they will say. Okay, I may buy that. But do you have proof? Are American citizens going to see a return from that $3,500 to $4,500 investment in the program? That is… will the dealers and consumers generate enough economic activity from purchasing a new vehicle to pay for that investment?
Or are we just dumping more money into the hands of auto manufacturers?
I guess only time will tell.
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