In between listening to my favorite musical tunes, I’ve heard many radio advertisements lately promoting the so-called “Cash for Clunkers” program.
The initiative – formerly known as the Car Allowence Rebate System – is a congressional initiative meant to spur consumers to trade less-than-stellar vehicles for newer, more fuel efficient cars. The program offered anywhere from $3,500 to $4,500 in rebates that consumers could use for a new car.
But the cavalcade of publicity seems to be the catalyst behind the program’s potential collapse.
It was announced today that the government was planning to suspend the program because the $1 billion allotment ran out after a few days. Congress is currently deliberating whether to infuse an additional $2 billion into the program.
Some are arguing that the rapid depreciation of the rebates shows that the program succeeded in getting people to buy new cars. Yet, one prominent Show Me State pol expressed opposition to pumping more money into the program.
Sen. Claire McCaskill, D-Missouri, said via Twitter today that she would oppose any effort to extend the Cash for Clunkers program.
“We simply cannot afford any more [taxpayer money] to extend cash for clunkers,” McCaskill said in a Twitter message. “Idea was to prime the pump, not subsidize auto purchases forever.”
McCaskill added “we put a [billion dollars into the] cash for clunker program.That’s 250,000 cars. We weren’t sure how long it would last,but a billion of your [money] is [a lot].”
UPDATE: McCaskill just sent out a tweet stating she would consider using existing stimulus funds to extend the Cash for Clunkers program.
That’s important, because the current plan weaving through Congress would use stimulus money to bolster the program.
McCaskill added in the tweet that she would oppose infusing “new” money into the program.
Tags: Cash for Clunkers, claire mccaskill, kit bondCategories: Business, Consumer Interest, Economy, Marketing, Politics, Sales.
[...] Following up on my last post, the U.S. House voted today to infuse $2 billion into the so-called “Cash for Clunkers” program. [...]
How many times will the auto industry be bailed out with our money? This money could have been shared by all of us in a refund.