Cash for Clunkers succeeded beyond anyone's imagination. In under a week, much of the $1 billion in the original CAR Allowance Rebate System (C.A.R.S) was used up.
This program benefits the buyers with a new fuel efficient vehicle at a discount. It benefits the dealerships by moving inventory. As inventories clear, factories will begin turning out more cars. The factories will require parts from parts manufacturers. At each step, workers will benefit and generate stimulus through pay to kick start this ailing economy.
According to a Bloomberg article the additional 2 billion approved today by the Senate, could increase GDP by .5 percentage points.
To find out if you qualify you can go to cars.gov .
You would think conservatives would be ecstatic when Americans are given some of those hard earned tax dollars back to go out and make purchases right? Wrong.
At every step of the way, conservatives have railed against this plan claiming we can't afford it. Of course, tax right offs to companies to do every day business is O.K. but when its American families that need a tax cut, its Socialism.
There is another program in the U.S. that is very similar to this program and you never hear a peep about it. That would be the Federal tax credits for energy efficient clients and home improvement upgrades.
When was the last time you heard Senators coming out against these tax credits? Are the right wing talking heads shouting out against this?
Never and no.
Why? Because when the tax credits came about, a Republican was in the White House. A bit hypocritical, don't you think? But now, since a Democrat is in charge and conservatives have a short memory span, this has now become generational theft.