Or, maybe not. The federal program formally titled as Car Allowance Rebate System, aka Cash For Clunkers, was touted as a “jobs” bill.
This report puts the lie to THAT, and the real costs. From Brookings.edu
Still usable, a lot of these were in GOOD shape yet. But, as is government lunacy, ALL ended up in HERE……..
….and ended up looking like THIS……..
What a COLOSSAL waste. Not only of good,usable vehicles, but MONEY as well.
Cash for Clunkers: An Evaluation of the Car Allowance Rebate System
By: Ted Gayer and Emily Parker
The Car Allowance Rebate System (CARS) or “cash for clunkers” program, launched during the height of the recession with the intention of stimulating the economy, creating jobs, and reducing emissions, was actually far more expensive per job created than alternative fiscal stimulus programs. Ted Gayer and Emily Parker have performed a wide-spread evaluation of the various aspects of the program, from numbers of vehicles traded-in to impact on GDP, cost per job, environmental impact and the types of consumers who took advantage of the program. Among other conclusions, they found that:
- Cash for Clunkers: An Evaluation
October 30, 2013
- The $2.85 billion program provided a short-term boost in vehicle sales, but the small increase in employment came at a far higher implied cost per job created ($1.4 million) than other fiscal stimulus programs, such as increasing unemployment aid, reducing employers’ and employees’ payroll taxes, or allowing the expensing of investment costs.
- Total emissions reduction was not substantial because only about half a percent of all vehicles in the United States were the new, more energy-efficient CARS vehicles.
- The program resulted in a small gasoline reduction equivalent only to about 2 to 8 days’ worth of current usage.
- In terms of distributional effects, compared to households that purchased a new or used vehicle in 2009 without a voucher, CARS program participants had a higher before-tax income, were older, more likely to be white, more likely to own a home, and more likely to have a high-school and a college degree.
Here are some graphs to go along with this report:
So, as is the usual case with this Regime’s brainstorms, the ONLY thing THIS fiasco did was get good, serviceable vehicles, that were AFFORDABLE to those of lesser means, and DRIVE UP the cost of used cars, damn near out of the reach of lower income persons, while lowering the price of scrap by a considerable sum.
And, as the percentage of sales by manufacturer shows, it WAS a jobs program alright. For SCRAPPERS for a BRIEF period. NOT for American auto workers. Foreign auto workers, yes indeed, as the chart shows.
Again, more proof that the left, and ESPECIALLY this administration, has the economic and business sense of tse-tse flies.