RE: “Credit cards in the ‘50s? No such thing.”
and...
“Diner’s Club Credit card company was formed in 1950”
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Don’t forget Carte Blanche cards!!!
Regardless, all credit card interest was tax deductible, whether a retailer’s card or national card. AND all sales tax was deductible, too, including that on car purchases! Now there’s a motivation to buy a new car!
Yes and deductible sales tax and interest would not have had the distorting effect on the car market of the “Cash for Clunkers” program. Nor would it have cost the government as much money. Nor would it have taken millions of dollars worth of used cars out of the economy.
One thing I have not seen discussed in the media about Cash for Clunkers is how the removal of those cars from the economy reduced the velocity of currency. The used car market in 2006 was making more profits for dealers than was the new car market.