Cash For Clunkers A HUGE Success for Obama!

[vec101]

Originally Posted by KevK

Obama wanted to get people buying again and back in the dealer showrooms while at the same time lowering foreign oil consumption. !

The environmentalists are not happy about the cash-for-clunkers program.
They say it is diverting money from "green" production to help the car industry, it's not reducing effectively reducing emmissions, and the price per ton of carbon dioxide is too high.

[GOPATTA2D]

A little research confirms the obvious:

Cash for Clunkers’ Real Cost*|*OpenMarket.org

How is this possible? Edmunds.com’s research shows that typically 200,000 vehicles worth less than $4,500 are traded in for new vehicles every three months. At best the current Cash for Clunkers program will fund 250,000 such transactions in the same time period — a gain of only 50,000 vehicles. Given that this program is budgeted to cost $1,000,000,000, this increase will come at the cost of $20,000 per extra sale.

Thus, two important things are not seen by Cash for Clunkers advocates — the fact that most of these car sales would have occurred anyway and the business investment taxed way to pay for this wreck. (Thanks to Margaret Griffis for the tip.)

And my mother wonders why I refuse to vote for the Democrats!