http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6360176Oh my.
cherokeeprogressive (1000+ posts) Fri Aug-21-09 02:06 AM
Original message
So why is the "CARS" or Cash for Clunkers program coming to an end Monday?
That's more than two months early, and the program as of today had only gone through 1.9 billion of its 3 billion dollars in funding. Why? The statement on the cars.gov website doesn't say why.
What of the people GM called back from layoff? Everyone was so so pumped about that.
Strange to end a program that the DOT by its own admission had a "wildly successful run". If it's so successful, why announce its end with over a billion dollars and more than two months left to go?
The no amnesty primitive, who has
NOT donated to Skins's island:
noamnety (1000+ posts) Fri Aug-21-09 02:10 AM
Response to Original message
1. I heard a report on the radio today that the government isn't processing the rebates in a reasonable amount of time. One dealership they spoke with had filed 300 claims, and of that had only received the cash for one single transaction, leaving them a million in the hole.
The greeting feline primitive, who has
NOT donated to Skins's island:
Hello_Kitty (1000+ posts) Fri Aug-21-09 02:22 AM
Response to Reply #1
4. But I thought the car companies were giving them advances.
The waiting-in-vain primitive, who has
NOT donated to Skins's island:
waiting for hope (1000+ posts) Fri Aug-21-09 02:11 AM
Response to Original message
2. There is even some hiring in the auto industry over this - would be a shame to pull the plug, especially if it's generating JOBS.
The traffic ticket primitive, who has
NOT donated to Skins's island:
TicketyBoo (9 posts) Fri Aug-21-09 02:17 AM
Response to Original message
3. I think they're basically out of money again.
There is a backlog of claims because the program was so successful that they have had problem processing the paperwork in a timely manner. Once all the paperwork goes through, they are likely to be out of money again.
I can tell you that this has had ramifications far past what they are seeing and what is being and will be reported. The announcement of the program got me shopping for a new car when I would not have otherwise even been looking. In the end, I decided to buy a used car. I know many other people have probably done the same thing, so the stimulation of the economy is even greater than what will be reported from the statistics involved in the actual program.
It has been so successful that I wouldn't be surprised if the program is restarted again at some point in the future (maybe next year).
The former gas station jockey, who has
NOT donated to Skins's island:
exboyfil (441 posts) Fri Aug-21-09 06:47 AM
Response to Reply #3
12. You measure success by far exceeding the goal of the program
In two ways in this case. First they upped the dollars from $1B to $3B. Second the program sold cars at a much faster pace than projected and sold more cars than originally intended.
How is this success?
Give an example. You put the For Sale sign out for your house and get a full priced offer on the first day which you accept. Was that a success (maybe so or maybe not). After accepting the offer you get someone willing to pay more.
The offer was too generous ($3500/$4500). What would have been the impact of half that? Would you have reached your initial goal of cars sales with half the drain on the Treasury? I bet the offer would have been even more successful if it was $10K/$5K.
What is going to happen next year to car sales? Has future demand just been brought forward (these buyers are not available next year to buy cars)? You also have a problem with these kind of offers - the pyschological price point has been reduced for a new car (car dealers see it with incentives all the time).
Will this become an annual program for the U.S. government? Since we own GM now maybe that is not entirely bad. Interesting way to run a country though.
Also we have the small matter of $3B that our grandkids will have to repay.
If car sales are humming along next year, then we can rate this program a success. If we are still subsidizing the purchase of new cars next year or car sales are in the toilet, then the program was not a success.
The primitive in Canada, who has
NOT donated to Skins's island:
Oregone (1000+ posts) Fri Aug-21-09 02:48 AM
Response to Original message
5. Probably because it was unthrottled and now they are overwhelmed
And swimming on the processing side.
Which is too bad really. Definitely one of the better stimulus approaches, and it didn't even need some long drawn out shitty process to create it.
IcyPeas (709 posts) Fri Aug-21-09 03:08 AM
Response to Original message
6. It was too successful - that's what they said.
The quill pen primitive, who has
NOT donated to Skins's island:
quiller4 (939 posts) Fri Aug-21-09 03:11 AM
Response to Original message
7. 1.9 in processed claim with an estimated backlog of .6 billion and the expectation of .5 billion in sales for the last weekend according to a Motor Trend report.
The automatic pilot primitive, who has
NOT donated to Skins's island:
MindPilot (1000+ posts) Fri Aug-21-09 06:01 AM
Response to Original message
8. The bathtub required to drown it would have been too big.
A government program that works sets a really bad precedent. Makes the working class all uppity and shit.
The becalmed primitive, who has
NOT donated to Skins's island:
B Calm (1000+ posts) Fri Aug-21-09 06:08 AM
Response to Reply #8
9. Trickle Up Economics has always worked! It's a damn shame republicans never understood this!
The gregarious primitive, who has
NOT donated to Skins's island:
greguganus (1000+ posts) Fri Aug-21-09 06:13 AM
Response to Original message
10. A dealer here said he was supposed to get his $ in 10 days & he says he's going to lay off staff.
HamdenRice (1000+ posts) Fri Aug-21-09 07:04 AM
Response to Original message
13. It was a good emergency jolt to the car industry, but long term a subsidy to people with money
In other words, most direct subsidies to consumers are based on need. Food stamps are a good example -- you need to be below a certain income to get them.
Cash for clunkers is a subsidy for people who already are well off enough to buy a new car.
It was a needed jolt for a desperate car industry, but on policy grounds, it's hard to justify over a longer term.
The feral feline primitive, who has
NOT donated to Skins's island:
stray cat (1000+ posts) Fri Aug-21-09 08:29 AM
Response to Original message
14. The extra money is already gone - do you want them to vote for more again?
Man, there's a lot of tighwads on Skins's island.
