There is news tonight about Uncle Sam's so-called "Cash for Clunkers" program.
You remember hearing about "Cash for Clunkers." From CNN Money:
Under the plan, vehicles purchased after July 1 will be eligible for refund vouchers worth $3,500 to $4,500 on traded-in gas guzzlers. The trade-in vehicle has to get combined city and highway fuel economy ratings of 18 miles per gallon or less.The program, created by Congress to spur sales and help the struggling auto industry, is intended to take low-mileage cars off the road and spur new car sales for U.S. automakers.
OK. So, Congress put $1 billion -- yes, with a B -- into the program and expected that it would last a little more than three months.
Well, here's the news:
The federal government may suspend its $1 billion Cash for Clunkers program after less than a week over concerns that the plan may have already burned through its funds, according to congressional sources ...The Department of Transportation, which runs the program, wants to sort out how much of the plan's funds it has already committed.
Here's the kicker:
Cash for Clunkers officially launched less than a week ago.
This begs a bunch of questions.
Did Congress monumentally underestimate the amount of money needed for the program, is it just wildly more popular than anyone expected or ... is there a whole lotta wastin' goin' on?
Are we going to get data on the new cars that have replaced the clunkers -- i.e., is someone from the government going to have some helpful numbers for us about how this program has effectively shrunk America's carbon auto footprint?
Can we assume that the "spur" to the auto industry Congress hoped to create with this program will be as short-lived as the program itself?
What do you think?
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