Cash for Clunkers Still Running

by Kevin on July 31, 2009

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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