Ad Nauseam: What “Cash for Clunkers” Hath Wrought

The government’s Cash for Clunkers program officially begins today, but car dealers have been running ads like this one for a while already. They have to keep the public informed: Now you can trade in your old car and buy a brand-new SUV or pick-up truck with a hefty assist from Uncle Sam.

Here we have the government spending a billion dollars on about 250,000 vouchers for individual car buyers. Ostensibly, the purpose is to save some jobs and cut some emissions. Meanwhile, we’re in the middle of a budget crisis affecting transit agencies serving 22 million Americans. Green jobs and emissions-reducing transportation are on the line. When DOT Secretary LaHood holds his press event on Monday touting the roll-out of Cash for Clunkers, someone should ask him how the Obama administration can justify this dubious car industry subsidy while hanging transit riders out to dry.

ALSO ON STREETSBLOG

“Cash for Clunkers” Coming to a Close?

|
The Obama administration plans to close the door on the politically popular and environmentally slipshod auto trade-in program known as "cash for clunkers," according to a report this afternoon in the Wall Street Journal: Transportation Secretary Ray LaHood said Wednesday he would disclose within two days updated figures on the program, including how much of […]
STREETSBLOG USA

Brookings: “Cash for Clunkers” Wasn’t Worth It

|
Turns out paying people to buy cars isn’t a great policy for the economy or the environment. That’s the determination of a pair of Brookings Institution researchers who evaluated the effectiveness of the 2009 Cash for Clunkers program. The $2.85 billion program, part of President Obama’s economic stimulus package, produced only 2,050 “job-years,” according to researchers […]