“Cash for clunkers” idea moves forward
I explained all the reasons why “cash for clunkers” is both terrible economic policy and terrible environmental policy, but the idea appears to be on the Washington fast track anyway. Apparently Bill Ford has more clout than I do.
The White House and Congress reached a compromise today that would pay $3,500 or $4,500 to folks who trade in their old gas guzzlers. To qualify, your old heap has to get less than 18 mpg. You also have to buy a new car that beats the old one’s mileage by at least 4 mpg, or a light truck that exceeds it by at least 2 mpg. The compromise calls for the vouchers to be available for up to a year, and up to 1 million vehicles.
It’s all being done under the guise of economic stimulus, of course, but it sounds like broken-window reasoning to me.
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David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
This is a horrible idea. Another way for the Obama administration to spend money they don’t have.
Can I buy a $500 beater on craigslist to trade in?
Does the less than 18mpg refer to combined mpg of the vehicle?
This is a proposal which originated from the REPUBLICAN side of the house… a Congresswoman from Ohio pushed for this as part of the initial stimulus bill but the House Democrats were not willing to put up the $7 Billion dollars she demanded. So, of course, she voted against the ARRA, with all the other GOP Ostrichs.
Bad ideas are always popular!
Can I have my car detuned to get it down to 18mpg and get a voucher?
There is a bigger footprint left on the environment from building a new car than to continue driving the old one.
I am tired of the Tax and spend label you republicans have put on Obama. If I remember correctly the last administration took us from a budget surplus that was created under the democratic Clinton administration to record deficits in a matter of a few years. Your republican president and congress passed every single spending bill that was presented to them. Most doing more harm to the country than good.You left this country in tatters. People I already know this is the tactic for the next election. More fear mongering and lies. Please don’t drink the kool aid. It is going to take a long time to undo the damage from the years of unchecked greed. Please stop preaching about fiscal responsibility and take a long hard look in the mirror
Luna, you are right about Bush and the DEMOCRAT-led Congress. No argument there. They spent way too much money.
However, you are the one drinking the kool-aid, sniffing glue, and dumping loads of DEMO-prill down your throat if you can’t see what Obama is doing is actually worse than George W! Stop spouting the same tired rhetoric about lies, fear-mongering, and kool-aid like the DNC has programmed you to and start thinking for yourself. Bush gave us a deficit, and now Obama has come off the top rope and piled on in such exorbitent fashion that we have to send Clinton to China and beg them to keep buying Treasuries. Two wrongs don’t make a right! Is two trillion not enough for you to criticize St Barack? What, you gonna wait for three? LOL!
Give me a break! This has to be the most ludicrous thing I have heard in a long time! Take a vehicle that get less than 18mpg and trade it for one that gets only 4mpg better? A much better idea would be to trade it for one that get double or better what the trade in gets! Now that would help a person out. Oh but wait, the Big 2 ½ don’t have that many vehicles that get a combined 36mpg or better.