Cash for Clunkers

August 6, 2009

We’d like to bring your attention to a new government program that may only be in place for a very short time.  If you want to take advantage of the “Cash for Clunkers” program, you’ll need to hop on it quickly. 

The Car Allowance Rebate System, or “Cash for Clunkers” is one of the few federal stimulus programs that everyone seems to be onboard with.  It’s a federal program that will credit you up to $4,500 to trade in your old car for a more fuel-efficient model. 

There are some restrictions, but this wildly popular program has few downsides.  President Barack Obama says the program “has succeeded well beyond our expectations and all expectations.” Transportation Secretary Ray LaHood claims “this is the stimulus program that has worked better than any other stimulus program that was conceived.”

And like a lot of green programs, it works from a multitude of angles. 

When the recession began, the U.S. auto industry was already in trouble.   Gas prices, which had skyrocketed the year before, were making American-made cars unpopular.  Car sales, already flagging, dropped to almost immeasurable.   By pumping money into getting Americans to spend on cars, we get the economy moving and shrink our carbon footprint by getting gas-guzzling cars off the road and out of commission. 

The program was clipping along with sales so good that it appeared it would run out of money just as it was starting.  Its $1 billion budget was projected to run out, prompting the House of Representatives to vote last week to authorize another $2 billion. But in the Senate, Republican senators say they will block more funding, calling it a waste.  That would be unfortunate.  Because ”Cash for Clunkers” stood for stimulating the economy and putting more Americans in the drivers’ seat with a lower cost to our environment.


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