Tuesday, September 29, 2009

Cash for Clunkers: American stimulus?

The recent government program that is known as cash for clunkers issued for economic stimulus has left me with one question: are we really benefiting ourselves as was portrayed by the program. Looking at the list of most popular vehicles purchased through this program on a wisdom journal blog answers my question real quick and the answer is no. 8 out of the top ten vehicles purchased in the cash for clunkers program were foreign made cars and every single car in the top ten for trade ins were American cars. How are we to stimulate our own economy when we are buying cars from foreign manufactures? It is true that many of these foreign cars were manufactured in U.S. plants but more money would go to the American economy if an American car was bought instead of the foreign car. I never heard that any of the American foreign car company plants were shutting down production or completely closing. The program should have been written to for only the purchase of an American made car you could get this rebate. This clearly would have stimulated our economy even more than it apparently did if it was executed properly. It is things like this that make me question what the government is doing to help get us out of debt. Even though it sounds like a good idea it clearly was not and besides all of this; if we the people are having problems with money our selves, why are we buying new cars anyway? Have we forgotten about the all the payments other than the down payment? Cars are expensive and if you take care of your so called clunker properly and take action to try and make your driving in general more fuel efficient it’s a lot better and a hell of a lot cheaper in the long run.

2 comments:

  1. Keep on preaching man. I have to say I agree with you on this subject. I honestly don't believe that the topic of this story is the main flaw with the cash for clunkers deal. I will be the first to admit I don’t know much about economics, but I believe a 6 year old could’ve pointed out the flaws with this program. Looking at the full picture of this deal, who really benefits from this? As you previously stated there are other payments besides the down payment. With that known, and the knowledge of the crippled economy the only people really able to have any benefit from this program are middle, to the upper middle class. I believe this because, most of the people hurt by the economy are lower middle class, to low class society, and they evidently would not be able to, on a great scale be able to make any payments other than the down payment. I hope we can agree on that. Now looking at who is hurt by this. The previously stated lower middle class, to low class, why? That is easy because who is stuck with their obsolete car, and when their obsolete car needs repair parts where do they go? They can’t go to the junk yard because the clunker program destroyed the rest of the obsolete models. They could certainly have the parts custom ordered, if they were well employed. Doesn’t lower class society need all the help they can get to succeed? Hold on though, at least their trying right? Their intentions are good right? Finally how can elected officials not see these problems, if they do see them do they even care?

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  2. Interesting conversation, gentlemen. I didn't know the statistics of the domestic/foreign purchases. Wow.

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