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The "Cash For Clunkers" program which cost the tax payers billions was an indirect subsidy for dealerships and automakers. The most popular new car under the p
by kqr2 17y ago
The "Cash For Clunkers" program which cost the tax payers billions was an indirect subsidy for dealerships and automakers.
The most popular new car under the program was the Ford Focus so Ford did benefit from government spending.
Edmunds estimates that the Cash For Clunkers program actually cost tax payers $24,000 for each additional new car sold.
http://money.cnn.com/2009/10/28/autos/clunkers_analysis/index.htm http://money.cnn.com/2009/10/28/autos/clunkers_analysis/inde...
http://autos.yahoo.com/articles/autos_content_landing_pages/1036/top-cash-for-clunkers-trade-ins-and-new-cars/ http://autos.yahoo.com/articles/autos_content_landing_pages/...
- grandalf 17y agoExcellent point. Note too that the program only subsidized certain sorts of vehicle upgrades (the kind that benefit US companies). Most anyone could have improved overall MPG by simply buying a Prius, but the incentives were structured not to give any additional incentive to such purchases.