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Almost anything would have been better stimulus than ‘Cash for Clunkers’
Washington Post ^ | October 31, 2013 11:09 am | Brad Plumer

Posted on 11/03/2013 8:29:00 PM PST by Olog-hai

When the Obama administration first proposed its “cash for clunkers” plan in 2009, the reaction was generally favorable. Congress would spend $2.85 billion to encourage drivers to swap their old gas guzzlers for newer, more fuel-efficient cars. …

But, as it turns out, the critics were on to something. A new analysis from the Brookings Institution’s Ted Gayer and Emily Parker found that the program was fairly inefficient as economic stimulus and mostly pulled forward auto sales that would have happened anyway. It also cut greenhouse-gas emissions a bit—the equivalent of taking up to 5 million cars off the road for a year—but at a steep cost. …

Gayer and Parker estimate that pulling these vehicle sales forward probably boosted GDP by about $2 billion and created around 2,050 jobs. That means the program cost about $1.4 million per job created—far less effective than other conventional fiscal stimulus measures, such as cutting payroll taxes or boosting unemployment benefits. …

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Chit/Chat; Miscellaneous; Travel
KEYWORDS: cashforclunkers; climatechangehoax; globalwarminghoax; porkulus

1 posted on 11/03/2013 8:29:00 PM PST by Olog-hai
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To: Olog-hai

Cash for clunkers was first and foremost a cultural destruction program.


2 posted on 11/03/2013 8:33:27 PM PST by Hardraade (http://junipersec.wordpress.com/2013/10/04/nicolae-hussein-obama/)
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To: Olog-hai
But it was aimed at promoting Obama's buddies in the auto unions. The only thing "better" would have been increasing government payrolls and getting more SEIU members... oh, wait, that was done too.
3 posted on 11/03/2013 8:33:43 PM PST by KarlInOhio (Everyone get online for Obamacare on 10/1. Overload the system and crash it hard!)
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To: Hardraade

What, you somehow object to using taxpayer money (i.e. confiscated at threat of gunpoint) to finance the destruction of capital (cars with positive, nonzero market value)? Why, how ever could that be?!


4 posted on 11/03/2013 8:35:59 PM PST by coloradan (The US has become a banana republic, except without the bananas - or the republic.)
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To: Olog-hai
I'm a recyler....I resuse zip lock bags if they're washable...I save old shoelaces...I save a lot of jars "just in case"...

my car has 195,000 miles on it, my husbands 140,000....we always run our cars way up in miles...

so the thought of just destroying perfectly good running cars is blasphemy to me....

we as a society waste so much....

I thought the key words were "reduce" "resuse" and "recyle"... destroying good cars is not good for the enviroment let alone the economy and is just plain stupid and silly...

5 posted on 11/03/2013 8:37:26 PM PST by cherry (.in the time of universal deceit, telling the truth is revolutionary.....)
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To: Olog-hai

Every liberal I know thought Cash for Clunkers was brilliant. I also talked to a liberal who was all excited about getting $8,000 to buy a house. Then I told him about the “limits”. His excitement waned.


6 posted on 11/03/2013 8:38:28 PM PST by VerySadAmerican (".....Barrack, and the horse Mohammed rode in on.")
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To: Olog-hai
cash for clunkers almost definitely prolonged the recession, and it has probably altered the new and used car markets for a decade.

cash for clunkers didn't create economic activity, it moved economic activity. it compressed it. people bought cars sooner rather than later -- at the expense of later. or they bought cars instead of other major purchases.

7 posted on 11/03/2013 8:41:04 PM PST by JohnBrowdie (http://forum.stink-eye.net)
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To: Olog-hai

It also ended up harming people by raising the price of used cars. More central planning nonsense from DC which did nothing good.


8 posted on 11/03/2013 8:42:28 PM PST by PghBaldy (12/14 - 930am -rampage begins... 12/15 - 1030am - Obama's advance team scouts photo-op locations.)
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To: cherry

You got a ways to go.. lowest miles on a car in our fleet is 203,000.. highest, 392,000...

Cars last a long.. long.. long time.

Both of our high mile cars qualified for cash for clunkers. One is a V8 powered 3/4 van, the other a large V6 powered SUV..

They won’t be recycled till they are dead.. Both are still going strong on their original untouched power plants and transmissions.

They build them a hell of a lot better now. 100,000 miles is hardly broke in.


9 posted on 11/03/2013 8:44:41 PM PST by cableguymn (The founding fathers would be shooting by now..)
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To: Olog-hai

Edmunds came up with the conclusion that every incremental vehicle sold cost the taxpayers $24,000.
http://www.edmunds.com/about/press/cash-for-clunkers-results-finally-in-taxpayers-paid-24000-per-vehicle-sold-reports-edmundscom.html


10 posted on 11/03/2013 8:44:54 PM PST by Proud2BeRight
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To: PghBaldy

That it did. I can’t find a used car with over 100K for less than $4K these days.


11 posted on 11/03/2013 8:45:26 PM PST by Olog-hai
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To: cherry

“I’m a recycler”

BINGO! Many cars that don’t run very well and are junked have lots of parts that are just fine and can be re-used. That includes fenders, bumpers, starters, doors, seats, solenoids, etc., etc., etc.

Instead, Mr. “I won” decided on his own to just delete all those cars/parts because his buddies needed a new ride!

Mostly, this program was just a waste by the worst example of an environmentalist that one could ever conjure.


12 posted on 11/03/2013 8:50:33 PM PST by Rembrandt (Part of the 51% who pay Federal taxes)
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To: Olog-hai

One thing’s for sure: Only in the sick twisted mind of a ‘Rat would pumping up EBT be considered “economic stimulus” and “shovel ready”


13 posted on 11/03/2013 8:58:34 PM PST by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: Olog-hai

Anything that uses Keynesian economic policy is bad policy. It is what failed in the Great Depression and it is failing us now.


14 posted on 11/03/2013 9:20:48 PM PST by jonrick46 (The opium of Communists: other people's money.)
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To: Olog-hai

Too bad we can’t get rid of more of those old clunkers in congress.


15 posted on 11/03/2013 9:23:55 PM PST by smokingfrog ( sleep with one eye open (<o> ---)
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To: Olog-hai; All

Regarding the title of the article, Democrats probably measure effectiveness of “cash for clunkers” program on how many votes the program is estimated to have bought for Democrats.


16 posted on 11/03/2013 9:25:49 PM PST by Amendment10
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To: Amendment10

increasing food stamps for the past couple years didn’t seem to be much “stimulus”


17 posted on 11/03/2013 9:29:14 PM PST by GeronL
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To: GeronL; All

Think of Obama’s unconstitutional stimulus plan as vote stimulus for Democrats.


18 posted on 11/03/2013 9:49:31 PM PST by Amendment10
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To: Rembrandt

“Instead, Mr. “I won” decided on his own to just delete all those cars/parts because his buddies needed a new ride!
Mostly, this program was just a waste by the worst example of an environmentalist that one could ever conjure.”

Not to mention the ticking financial time-bomb of GMAC/ALLY giving New Car loans to Real Credit Criminals (Below 500 credit scores. I know some repo folks making GOOD money chasing these cares right now.


19 posted on 11/03/2013 10:21:23 PM PST by tcrlaf (Well, it is what the Sheeple voted for....)
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To: GeronL
Yes, and this "gem":

"far less effective than other conventional fiscal stimulus measures, such as cutting payroll taxes or boosting unemployment benefits. …"

Good grief! THIS is what liberals think is "effective"?

MORE people on the dole for LONGER periods of time?

I simply could never be a liberal. My head would explode from the stupidity.

20 posted on 11/03/2013 11:08:21 PM PST by boop (I had no IDEA I'd be paying for Obamacare. I thought it would be a rich guy.)
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To: cherry

when the shtf people won’t have the self-restraint to use dwindling resources efficiently.


21 posted on 11/03/2013 11:35:05 PM PST by Secret Agent Man (Gone Galt; Not averse to Going Bronson.)
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To: Hardraade

Those 30M illegals Obama is fighting to host here.

They dont drive Prisues.

They drive 15 year old Yukons and Expeditions.


22 posted on 11/04/2013 1:18:00 AM PST by NoLibZone (The reason we are where we are today is the belief that posting on a website will fix the nation.)
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To: Olog-hai

Anytime an article seriously mentions halting global warming, I stop reading. Any author who seriously talks about anthropomorphic global warming is too ideologically fixated for me to consider any of his other ideas.

The Sun is 1.3 million times larger than the Earth. All of humanity and our emissions are like nematode sh*t in comparison.


23 posted on 11/04/2013 2:54:37 AM PST by Gen.Blather
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To: Olog-hai

Cash For Clunkers was all about getting rid of vehicles that can’t be remotely-controlled or tracked.


24 posted on 11/04/2013 3:28:00 AM PST by EricT. (Freedom is slavery. Ignorance is strength. Big brother is watching you.)
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To: Olog-hai
Well, I for one can't think of a better way to artificially inflate the used car market.

So from the commie perspective, the program was a success.

25 posted on 11/04/2013 3:54:40 AM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Hardraade

I know of several single women who are desperately looking for a good used car and cannot find one they can afford.

Forget about finding a good, dependable 10-15 year old used car for around $2000-$3000. Ain’t gonna happen.


26 posted on 11/04/2013 4:13:28 AM PST by Cowgirl of Justice
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To: Cowgirl of Justice

Exactly. And what was aimed at was mainly American cars.

It was the biggest scorched-earth program ever against Americana and one of the main segments of American culture.

Only a very, very sick mind would have come up with the “clunker” engine destruction procedure.


27 posted on 11/04/2013 4:31:21 AM PST by Hardraade (http://junipersec.wordpress.com/2013/10/04/nicolae-hussein-obama/)
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To: Olog-hai

How about Cash For Condums!

(Prevent another Obama)


28 posted on 11/04/2013 6:06:27 AM PST by IbJensen (Liberals are like Slinkies, good for nothing, but you smile as you push them down the stairs.)
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To: Olog-hai

Cash for clunkers was designed to get as many non black box vehicles off the road as possible. I know several people who tried to buy a “first car” for their teenagers to drive to school and after school activities and had trouble finding a decent car that was within their budgets.


29 posted on 11/04/2013 6:52:38 AM PST by Arrowhead1952 (The Second Amendment is NOT about the right to hunt. It IS a right to shoot tyrants.)
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To: Olog-hai

I just bought a beautiful 90 Miata with 74k for 4 grand.

You have to stalk Craigslist and eBay relentlessly and find the “special situations”

This guy had one kid, one more soon to be born, and his wife had that “get this thing out of here” look.


30 posted on 11/04/2013 6:55:52 AM PST by nascarnation (Frequently wrong but rarely in doubt....)
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