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Cash for Clunkers: The Aftermath

Sure anyone could see it…the Cash for Clunkers program just pushed those who were likely to buy a car in 2009 (or 2010) and gave them a reason to buy in August.

An what happens next?

Hmmm…let me guess…how about lower demand for autos, and the car makers in trouble!

We discussed this on back in August (see our post: “Cash for Clunkers: Another Great Government Program! (Yeah, right!)” on August 25).

It was obvious then that Cash for Clunkers was a shell game, and that they were just pushing sales to August (at the expense of sales for the remainder of the year).

Making it worse was the fact that the automakers had no idea when the program was going to end, so they increased production capacity!

And then the government dropped the program, leaving them with extra capacity, and no sales.

And today, we have an article from The Boston Globe:

Car showrooms quiet after clunkers clamor ends

Now, dealers are hurting (and worse yet many are still waiting for their government payments to arrive!) This quote from the article sums it up:

“It was probably, in the end, a complete waste of taxpayer money,’’ said John Wolkonowicz, a senior auto analyst at IHS Global Insight, Lexington forecasting firm. “The dealers, who were supposed to be the primary beneficiaries, many were forced into cash flow problems because the government didn’t pay them in a timely fashion.’’


“This program was very good at getting product off the lot, but there haven’t been long-term benefits,’’ he said. “Dealers are reporting that showrooms are pretty dead right now.’’

It was so obvious what was going to happen that even a “community organizer” could have been able to see it.

Just another “Obamination”…

Surprise, surprise!
The Fed Up American

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Posted in 2010, Fed Up With Government, Fed Up With Obama.

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