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Congress has passed a $2 billion extension of the popular “cash for clunkers” program, clearing the legislation for President Barack Obama’s signature. The Senate passed the extension Thursday evening. The House approved the measure last week.
Lawmakers made sure to keep the popular program alive before heading home for a monthlong vacation.
Acting with unusual haste, the Senate readied a $2 billion fill-up Thursday night for “cash for clunkers,” the economy-boosting program that caught the fancy of car buyers and instantly increased sales for an auto industry long mired in recession.
Supporters of the program hailed its effect on the auto industry — which had its best month in nearly a year in July — as well as its claimed environmental benefits.
“The reality is this is a program that has been working. Consumers believe it’s working. Small business people believe it’s working. People who make steel and aluminum and advertisers … and everyone who’s involved in the larger economic impact of the auto industry believe it is working,” said Sen. Debbie Stabenow, D-Mich.
The legislation had its share of critics, though, most of them Republicans.
The average replacement car gets almost 10mpg better than the clunker it replaced. All but one were compact and medium-size cars – and the trade-ins were almost all SUV’s and trucks.
A cute fluff piece co-written by the White House that came up with the gem “We misread how bad the economy was”.
By the way, Climate Experts aren’t impressed.
“Compared to overall carbon dioxide emissions in the United States, the pollution savings from cash for clunkers do not noticeably move the fuel gauge. Environmental experts say the program — conceived primarily to stimulate the economy and jump-start the auto industry — is not an effective way to attack climate change.”
What’s odd about this is a 10 mpg savings will reduce fuel tax revenues 37% thus money for infrastructure is reduced and billions more will have to be borrowed 7 more generations out to get roads fixed.
Obama can’t even run a simple used-car trade in deal without perverting the truth. (and we are supposed to trust him with a rationed health care plan?)
An independent analysis by Edmunds.com showed that two full-size trucks and a small crossover SUV were actually among the top-ten buys.
The discrepancy is a result of the methods used.
Edmunds.com uses traditional sales measurements, tallying sales by make and model.
The government uses a more arcane measurement method that subdivides models according to engine and transmission types, counting them as separate models.
For example, the Ford Escape is available in six different versions including two- and four-wheel drive and hybrid versions. The government counts each version as a different vehicle using guidelines from the Environmental Protection Agency. Only the front wheel drive, non-hybrid version made the government’s top ten list.
The Ford Escape SUV, instead of being the seventh-most popular vehicle under the program, as the government ranked it, was actually the best seller, according to Edmunds.com.
So when the CARS program is over and the headlines read, “September Auto Sales Down 90% from August”, which government spokesperson is going to still be talking about the environmental benefits.
Glad to see Obama administration take deliberate actions to help the economy, the environment and keep Americans employed.
This is a stimulus dollars in action !
Contrast this to the do nothing GOP now conveniently on the deficit bandwagon now that they plunged the nation into near recession.
I’m happy Dallas is glad to Obomba doing something. Like the earmarks and ram rodding and no lobbyists and hiring tax cheats for his staff and running up (adding to) a huge deficit and now wanting to take over health care and unconstitutionally taking over banks and two major auto companies.
Woohoo! Dallas is glad.
A ten mile per gallon saving on fuel consumption, taken over the lifetime of the new vehicles, equates to a remarkable reduction in green house gas emissions. And if they can be run on ethanol blend, that is another net reduction in the nation’s vehicular carbon footprint. A modern engine, is a remarkable thing. They are so very efficient, that they have difficulty reaching normal operating temperature without intervention by an engine management unit. I regularly drive to a cold place, and my modern car’s fuel consumption slightly increases, to stop the engine going stone cold. The engine bonnet has heat insulation, to help keep the engine warm.
Goody, let’s use Ethanol and waste more precious resources like food crops and water……
#3, benson,
More FUD.
While we hear mostly about the automobile side of the program, there is a commercial vehicle program for small trucks. You make the error of lumping everything into one pot and claiming this is the norm. WRONG You are comparing apples and oranges.
Go back the the government web site and read it for yourself.
#6 Diesel..I would agree these are concerns but you must live in lala land to assume this is not how government largely works.
Instead of focusing on what cannot be changed, I’m glad Obama is doing things that can.
Your arguments are centered on Obama not being focusing on a “boil the ocean” campaign to rid 230 years of government bureaucracy.
Shame on you for being such a fool as an adult.
The “huge deficit” comment dismisses that on day one, Obama walked into 1.9 Trillion deficit. You fucking liar, you.
“take over health care” ? You you fucking liar. It’s about INCLUDING a single payer system not make govermnet workers doctors. You fucking liar.
Taking over banks and two major auto companies? You fucking pathetic and un-American liar out to undermine a get well plan for our ailing nation.
90% of these cars would have been off the road it 10 years anyhow.
Edmunds reports that even though 250,000 cars have been traded in under this program, 200,000 would have been traded in without the program, that means that the amount spent for each additional “clunker” taken of the road was about $20,000 per vehicle. You and I and our kids get to pay for that.
In the unintended conqequences department, NPR reports this morning that this is causing a huge shortage in used cars, and the cost of used cars is skyrocketing. That means that those uf us who cant afford a new car (even with the program) are out of luck.
Thank you BHO.
#11 What a lame set of complaints.
The economy sucks, people are unemployed and a sense of urgency is what the people want from government.
Instead, you say in 10 years cars will be off the road anyway. Shame on you for a lame set of excuses even from the low threshold of lame excuses from the right.
A pox on all the rightwing-nuts that are ruining this site with all their inane comments
Imagine if McCain/Palin had won the election:
McCain: My God, the economy is in horrible shape. Bush really gave us a shitty legacy to clean up. What shall we do?
Palin: Pray to God.
@lividd
It does get a little tiring beating your head against a wall doesn’t it? Facts don’t matter to them only ideology. Rather sad, really.
I think we should hire 10000 people to break windows and cars. This would boost employment in window installers, window manufacturing, and car repair.
7 out of 10 bought American? I guess they’re prepping for the next cash for clunkers.
Dvorak editor:
Do you really want gutter comments like #10 (from Dallas) that add nothing to the discussion?
#11, Les,
Wrong. Edmunds is a repeated opinion piece that has been discredited as just factually wrong. The NPR did NOT report a shortage of used cars. They interviewed someone from the religious, conservative, “just say no”, Republican, right that presaged that. There is no shortage of cars, used or new.
On June 30 the car lots were full. This program was designed to reduce the new car inventory by inducing the buying public to buy, now. The manufacturers will not build if they can’t sell and have no room to park anything.
This program applies only to those vehicles worth less than $4,500 (or $3,500, depending upon the criteria). If the vehicle is worth more the dealer will take it in trade and sell it for a profit. If it is worth less, the dealer will still give you $4,500 (or $3,500) and collect that from the government. Most dealers do not want to be bothered with vehicles, even as a trade, worth so little.
And in 10 years, many of the cars purchased in the past month will be off the road too.
#14, Jag,
Palin: Pray to God.
What??? And mess with God’s plan? He wanted it this way and Palin would suggest we second guess him?
Damn her !!!
#14 – just imagine
They said that if I voted for Sarah Palin, we’d have an incompetent vice president.
After 8 months, I have to admit they were right.
Is it just me that notices this? Why do EVERY right winger’s thoughts and actions now look exactly like that those of that guy that shot-up the gym a few days ago? As in placing blame on everything / everybody else, and not doing anything to fix it, and finally going on an insane rampage.
Is this really what the depth of Republican thinking has become?
(Senator Grassley tells a story)
http://www.thedailyshow.com/watch/tue-august-4-2009/chuck-grassley-s-debt-and-deficit-dragon
#18, benson,
Dallas offers a refreshing and honest view. In contrast, your trolling so seldom offers anything other than manufactured bullshit reminiscent of Boss Limpdick’s latest radio rant.
Get a life and try thinking for yourself.
Spending $4500 to offset 6 tons of CO2 is $750 a ton. That’s if you assume someone traded in an SUV for a green car making 40+ mpg, and doesn’t include the carbon footprint of building the car, or for the building the replacement parts you just destroyed.
http://www.carbonfund.org/Calculators/
#24 MikeN
Presumably that’s 6 tons a year, and the car will last more than 1 year.
Edmunds top 10 cars being bought under the program, in order
Ford Escape Ford Focus Jeep Patriot Dodge Caliber Ford F-150 Honda Civic Chevrolet Silverado Chevrolet Cobalt Toyota Corolla Ford Fusion
Cool… Thousands of people that didn’t have a car payment have been tricked into buying a new car and taking out a loan for it even though they may or may not be able to afford it due to the current economy. But what the hell, they’re giving me $4500 for my running POS. Kinda akin to the sub-prime fiasco…
The “destruction of the replacement parts” issue is of value only to those who make or sell (or salvage) those parts. It’s no favor for Joe Sixpack….
I’m disabled, and can’t even begin to afford a new car, but my taxes (and my wife’s) are being used to buy new cars for others who aren’t a lot better off than I am (and those who are). This is correct, how?
Oh well, we wanted “change”. I may have a little left before my next check…. (And I’m not one of those folks who jumped the border for the check. 32 years paying into a system that fought me for two years, TWICE, to get a little bit of that back….)
#18 jbenson2
Although he said it somewhat forcibly – what he said seems fair enough, and contributed to the discussion.
You may not like what he said – but I’m sure invoking censorship is really not what you want.
Man I feel so much better now that Dallas has called me a fucking liar. Ooh
Considering the source I will take that as a compliment and it makes my day.