Wednesday, September 2, 2009

Another poorly planned program

The Cash for Clunkers program was to boost sales of Auto Manufacturers.
The program, drew buyers into quiet showrooms by offering up to $4,500 toward new, more fuel-efficient cars and trucks. The rebates gave automakers and dealers a much-needed lift, spurring 690,114 new sales, many of them during August, at a taxpayer cost of $2.88 billion..
However, the Cars that sold were Ford, Honda, Toyota, while Chrysler and General Motors sales dropped last month.
Why didn't the Cash for Clunkers program only apply to American Car manufactures?
This would have helped the American Auto Manufactures with their cash flow problems.
There is no reason it had to apply to foreign auto manufactures.
This should have been a program to get Americans to buy from American auto Manufactures.
We loaned money to GM and Chrysler and we should have helped them with their bottom line.
I am not saying it is wrong to buy a Toyota, BMW, Mercedes. I am just pointing out that the rebate money was from our tax dollars and should have helped American Auto Makers increase their profits. Billions of Dollars was given to them and this program could have helped them pay back some of the money.

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