CNN is reporting this morning that the Cash for Clunkers program “resulted in relatively few additional car sales.” Further, even though the “average rebate was $4,000,” taxpayers were on the hook for “spending about $24,000” for each additional car.
That’s worse than using taxpayer money to pay someone to dig a hole and another to fill it in. In this case, taxpayers paid someone to dig a hole and then filled it in with cash.
“A Total Of 690,000 New Vehicles Were Sold Under The Cash For Clunkers Program Last Summer, But Only 125,000 Of Those Were Vehicles That Would Not Have Been Sold Anyway. . .” (Peter Valdes-Dapena, “Clunkers: Taxpayers Paid $24,000 Per Car,” CNN, 10/29/09)
“The Average Rebate Was $4,000.” (Peter Valdes-Dapena, “Clunkers: Taxpayers Paid $24,000 Per Car,” CNN, 10/29/09)
• “But the overwhelming majority of sales would have taken place anyway at some time in the last half of 2009, according to Edmunds.com.” (Peter Valdes-Dapena, “Clunkers: Taxpayers Paid $24,000 Per Car,” CNN, 10/29/09)
“That Means The Government Ended Up Spending About $24,000 Each For Those 125,000 Additional Vehicle Sales.” (Peter Valdes-Dapena, “Clunkers: Taxpayers Paid $24,000 Per Car,” CNN, 10/29/09)
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