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Rick case: `Cash for clunkers' is an all-around winner
The ``cash for clunkers'' program is an overwhelming success, not just in my opinion but in the opinion of the people on the street. This may be the only recognizably successful part of the stimulus program to date.
There are 300 million people in this country. The original "cash for clunkers" program used just one billion dollars. If it was the only recognizably successful part of the stimulus program to date, then we managed to avert the Great Depression with $3.33 of stimulus for every man, woman, and child. Just think where we'll be once the program's been tripled to $10 per person.
At $10 per person, that's like borrowing 30 minutes of wages ($18.56 average hourly wages according to latest government figures) from each American's future (preferably from those who can actually find work) so that we can give some Americans $4,500 right now.
Why was I ever bearish? Watch out China! Here we come!
Doing the ‘Clunker’ Calculus
The short-term effect will be obvious, but the program’s longer-term value — either as a method of stimulating the economy or saving energy — is less clear. Economists say that most buyers simply moved up the timing of their purchase, and that the projected gasoline savings are exaggerated because many of the trade-ins were seldom used.
Stop your nitpicking! We can simply triple the size of the program each time it runs out of money and/or appears to be stalling!
Friday: No Major Economic Releases
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[image: Mortgage Rates] Note: Mortgage rates are from MortgageNewsDaily.com
and are for top tier scenarios.
Friday:
• At 10:00 AM ET, *University of Michig...
10 hours ago
2 comments:
Stag,
In the last 16 days I've driven ~ 3000 miles (eight different states in the NE; cities, suburbs and rural areas). I saw very few jalopies on the roads. In fact, I was very surprised at how new and well maintained the cars were. Very different than 30 years ago when people weren't ashamed to drive older but serviceable cars.
The roads were quite busy, especially on the weekends. It did seem that heavy truck traffic was down though. Truck traffic is something that I always notice in the rain as trucks throw up a ton of water making driving difficult.
As far as I can tell, we don't need more cars or more debt. With that in mind, I don't see how cash for clunkers will improve our situation.
mab,
"In the last 16 days I've driven ~ 3000 miles..."
Holy cow! I just posted a comment in the latest post saying I don't drive THAT much in an entire year!
"Very different than 30 years ago when people weren't ashamed to drive older but serviceable cars."
I am not easily shamed. Grew up as the banker's son in a small farming community (we moved there when I was about 6 years old). Was teased enough for a lifetime. It took nearly 12 years to feel like I wasn't an outsider. Then we moved, lol.
Not complaining. It was a good place to live. Wouldn't trade the experience. Enjoyed summers so much it made early retirement #1 goal. Nearest friend lived a mile away. Taught me to be independent. Don't get bored easily.
Don't handle stress as well as some though. Had very little practice growing up. The blog helps though! As does lucking out when it comes to the type of people who regularly post here!
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