[Zandar]

Originally Posted by dcarrb

The thing is, the point of the "cash for clunkers" program (which I believe was badly structured and probably did very little good for the long haul) was economic stimulus, not debt reduction. GM maintains their uptick in sales has enabled them to keep a production line or two rolling. Ask the folks cashing those paychecks (and spending money, and paying taxes) if the program was worthwhile.

Couldn't we have achieved the same goal by simply giving GM and the others an automatic $4000 towards a customer's purchase of a new car (up to $3 billion gross), and then still had all of those used cars able to be sold in the private sector? That would have cost Joe Taxpayer the same amount (when accounting for the up to $500 for the junked cars), generated the same amount of sales and taxes, and also generated additional tax revenue from the inevitable used vehicle sales as well (not to mention affording economical transportation for those who purchased the used cars).

If it's all about the environment, we could have simply given tax credits only to qualifying vehicles; say, vehicles that get 35+ MPG combined. Wouldn't that have made more sense?

I still think it would be ridiculous as it's basically squeezing the taxpayers to "stimulate" sales for a private company. Hey, I'm having tight times and a thin wallet; can I get some hand outs to stimulate my economic growth? If Uncle Sam gives me just $500,000,000 (only 1/6th of the Cash for Clunkers budget!), I promise to circulate all of it in the economy by purchasing real estate, vehicles, and maybe even a business or two. I only want to provide jobs, pay taxes, and stimulate the economy! Look at me; I'm a philanthropist!