U.S. Cash for Clunkers Faces Opposition

2009 Consumer Assistance to Recycle & Save Act Draws Criticism

Jul 16, 2009 Lena Gott

Many support Obama's new car stimulus measures, including the Cash for Clunkers program. What do opponents of the Consumer Assistance to Recycle & Save Act have to say?

Is the United States Cash for Clunkers program a good idea? Here are some arguments on both sides of the fence. Read about some pros and cons, then review additional information about the program in the articles linked below.

Obama New Car Stimulus Support

This stimulus measure will spur auto sales in a time when the economic climate encourages individuals to be frugal spenders. Accordingly, the automotive industry is a huge supporter of this bill, as its employees likely are as well. More sales of new vehicles equals more revenue for car makers plus more work for factory workers and car salespeople.

Economic Stimulus 2009 – Cash for Clunkers Opposition

Opponents of the Cash for Clunkers program raise various arguments against the economic stimulus measure. Some of those against the program believe the voucher program makes no sense for individuals who drive “clunkers” because many of those individuals cannot afford new cars. An older car that has been paid off is a more attractive option to people who cannot afford monthly car payments. The same individuals who cannot afford car payments may also save money on insurance with an older vehicle; insurance is sometimes low on older model cars when the replacement value is low.

Washington Post Editorial Against Money for Old Cars

The Washington Post published an editorial on June 23, 2009 entitled “A Clunker of an Idea" in which the author named several reasons why the program is a bad idea. The author states that Cash for Clunkers “is a bad idea whose time seems to have come.” Among arguments against the measure are 1) it will simply shift future demand for new cars to the present at the expense of the sales of other goods 2) raising gas prices is a more effective means of getting car owners to purchase more fuel-efficient vehicles 3) a $4,500 voucher may not be enough to offset the financial burden a new car would place on an individual who cannot afford a new car payment (and who drives a clunker for this reason, as mentioned above).

Environmental Impact of Improved Fuel Efficiency

Environmental enthusiasts may wonder why the required level of improved fuel efficiency is so low. Congress could have required that all new vehicles purchased under this program had to get a certain number of miles per gallon, say 30, instead of a certain number of miles per gallon over the trade-in. On the other hand, some proponents of the bill argue that the measure is needed because it replaces thousands of old vehicles with much more fuel efficient versions.

Consumer Assistance to Recycle and Save Act of 2009 Criticism

What are some other reasons some individuals might oppose the Cash for Clunkers program? One reason could be a moral “smell test” of sorts. Some people are undoubtedly put off by the fact that this measure was lumped in with a broader war spending act. This brings up the question of whether the measure could have stood up on its own or if the only reason it passed was because House and Senate opponents were concerned about getting the rest of the bill through. It seems oddly similar to the special interests that President Barack Obama verbally denounced in his 2008 campaign.

Resources:

A Clunker of an Idea. Retrieved June 23, 2009 from washingtonpost.com.

Consumer Assistance to Recycle and Save Act of 2009

Related Articles:

New Car Tax Rebate- Obama Economic Stimulus Plan

Government Car Rebate & $3,500 or $4,500 Voucher

The copyright of the article U.S. Cash for Clunkers Faces Opposition in American Affairs is owned by Lena Gott. Permission to republish U.S. Cash for Clunkers Faces Opposition in print or online must be granted by the author in writing.

Obama New Car Stimulus, Cash for Clunkers Debate	Consumer Assistance to Recycle & Save Act of 2009	Check Fuel Efficiency of New Vehicles
Arguments Against Money for Old Cars, Pros & Cons

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Jul 22, 2009 4:42 PM

Lena Gott :

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