So apparently the $1 billion program in the stimulus has run out of funds in a few weeks. The program provides up to $4,500 for qualifiying car purchases from trading in cars that are less than 25 years old with low mileage standards to new cars with higher mileage standards.
The House recently approved a new appropriation for $2 billion to be allocated for the program. I do not know if that is new money or just a bigger slice of the stimulus. Also, rumor has it that Senate Republicans and Blue Dogs are
looking to kill the new House appropriation of funds.
Overall, I think this is an idea that is working. The fact that it ran out of money in a few weeks shows that it's working. And I think this shows where government can be effective if it's targeted well. The consumer gets $4,500 towards a new car which will save them money in the long run. The government gets old gas-guzzlers off the road and newer more environmentally friendly ones on, and to top it all off,
the car companies and local dealerships get an increase in business, which hopefully sustains employment, or perhaps even increases it.
I can buy that perhaps the $4,500 per family may be a bit too much. The housing credit is $8,000 and that's for buying a house! So maybe in the Senate version they can approve the appropriation but perhaps lower the credit to $3,000, thus allowing more families access to this program. But I think killing it would be a bad idea.
Let me know what you think. I've posted a poll.