The truth about the "success" of Cash For Clunkers? The $3B government subsidy did nothing to increase overall demand. It may have encouraged a few people to make a purchase they otherwise wouldn't, but most were people who were considering of buying a new car anyway and took the extra cash.
After the shopping binge inspired by the government's "Cash for Clunkers" incentive program ended, U.S. auto sales plunged in September and the industry sunk back to the depths from which it started, figures released Thursday showed.
The reports of monthly sales numbers confirmed predictions that some of the spectacular gains of August had merely been achieved by moving up sales that would have happened in September.
The results raised doubts from some economists about the effectiveness of the $3 billion federal program as a stimulus
GM's sales down 45% year to year, Chrysler 42%. Ford, which didn't take bailout money, was down only 5% year to year, but 37% from August. Seriously, it's not just economists who have doubts. Some of us doubted the wisdom of the program from the moment it was announced. It was a feel-good program, nothing more, a temporary reset button on the price of autos that does nothing in the longer term for either "climate change" or the industry it would allegedly help.
This was a $3B program. How successful do you think the government is likely to be managing the exponentially larger health care sector? They can't even keep track of the TARP funds.