Out of Control Policy Blog

Yeah, About That Clunkers Deal

This is one of those times that being right just doesn't feel as good. As many predicted, including several contributors on the blogs, car sales have drastically dropped in the aftermath of cash-for-clunkers. All the government subsidy did was waste taxpayer money and push car sales that would have happened anyway into a concentrated period:

General Motors Co. and Toyota Motor Corp., the biggest automakers in the U.S., said fourth-quarter sales may rise after a letdown from the “cash-for-clunkers” rebates dragged the industry to its second-worst month of 2009.

September U.S. sales fell 23 percent as the incentive program left dealers’ inventory depleted. With the government cash boosting demand in July and August, third-quarter sales ran at an annualized pace of 11.5 million cars and trucks, the strongest in a year.

Bloomberg has the whole story here.

Anthony Randazzo is Director of Economic Research


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Comments to "Yeah, About That Clunkers Deal":

Cars4Charities | October 6, 2009, 10:46am | #

Cash for clunkers didn't just waste taxpayer money, it cost auto repair shops and charities that rely on the proceeds from car donation a lot of money.

Terence Washington | October 8, 2009, 12:34pm | #

Though this is my first time visiting this space of commentary, I don't know what to make of it yet. I don't know if it aim is a blend of government bashing "I told you so" sarcasm or insipid critiquing by some who aren't aligned with the current Government's decisions( I will admit, they have been have wielded as of late) or a forum where people poke but don't offer solutions. I thought bloggers were suppose to offer some sort of shared commentary on how to resolve or approach a subject, not waterboard it to death.

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It is a very nice and good post. Keep up the good work.

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