Paying the price for Cash for clunkers

As I predicted here while the program was running, post-clunker program car sales have dried up, causing car retailers to question the wisdom of the program in the first place.

I read about this phenomenon in 2 separate physical papers today. This article sums it up pretty well.

http://www.sgvtribune.com/news/ci_13427358


The post-clunker slump has some, like Whittier-based Community Honda dealer Don Wood, wondering if the program was a good idea in the first place.

"It trained the consumer to not buy until there's a big deal," he said.

But that's led to a marketplace that is trending toward booms and busts, just as the clunker program pulled in demand only to have it fizzle, he said.

"Frankly, I hope they never, never do this again. It's just a bad idea," Wood said.


In this instance, I believe President Obama fell prey to the "let's do something!" impulse. He saw a chance to stimulate the economy and to help the environment at the same time and ignore the fact that the program never stood a chance of having the impact on either than would justify its price tag and its long term effects.

I believe that cash for clunkers will go down in history as the single dumbest thing the Obama administration has done to this point... and that's including Van Jones.

Originally posted by sh76
As I predicted here while the program was running, post-clunker program car sales have dried up, causing car retailers to question the wisdom of the program in the first place.

I read about this phenomenon in 2 separate physical papers today. This article sums it up pretty well.

http://www.sgvtribune.com/news/ci_13427358


[i]The post-clunker slump has ...[text shortened]... ng the Obama administration has done to this point... and that's including Van Jones.

Depending on what his real goals/objectives are, it may have been a smart move. It takes a very creative mind to put into place programs designed to implode the us economy and devalue the dollar in such a way that our own people will embrace it.

Originally posted by sh76
As I predicted here while the program was running, post-clunker program car sales have dried up, causing car retailers to question the wisdom of the program in the first place.

I read about this phenomenon in 2 separate physical papers today. This article sums it up pretty well.

http://www.sgvtribune.com/news/ci_13427358


The post-clunker slump has ng the Obama administration has done to this point... and that's including Van Jones.

No comment on "Cash for Clunkers" as an Obama program. Well, maybe one: it could have been done better.

Okay now for the moron in this piece. It "trained people not too buy until there's a big deal" ? Listen Honda-car-salesman-not-an-expert-on-anything, not everyone is as dumb as you. Do you know anything about how durable consumption goods move with the cycle? No of course not. Well, nobody was "trained" to do anything. Fact is, they don't want to buy your cars right now unless the price is significantly cheaper. When the price fell, people bought. Now that the price has risen again, they are not buying. Pretty simple. Just be happy, Don, that the federal government was silly enough to think it worth throwing tax payer dollars at your flailing industry.

If this is the best Mr. Wood has got he'd do well to save his empty blather for putting people into cars they don't want and can't afford right now. Man, you give people a handout, and they whine when it's not permanent.

Originally posted by sh76
As I predicted here while the program was running, post-clunker program car sales have dried up, causing car retailers to question the wisdom of the program in the first place.

I read about this phenomenon in 2 separate physical papers today. This article sums it up pretty well.

http://www.sgvtribune.com/news/ci_13427358


[i]The post-clunker slump has ...[text shortened]... ng the Obama administration has done to this point... and that's including Van Jones.

One more comment. You guys are making a mountain out of a molehill. Not a big deal in the least.

Originally posted by telerion
One more comment. You guys are making a mountain out of a molehill. Not a big deal in the least.

The sad thing is that you're right. $3 billion of government spending on some program of marginal value and limited utility now qualifies as a molehill.

Remember when $3 billion was a lot of money?

It's been a long time. 3 billion is only about 0.02% of our GDP.

You do know that the cash for clunkers programme was basically copied from equivalent European programs?

Originally posted by KazetNagorra
You do know that the cash for clunkers programme was basically copied from equivalent European programs?

How well did they run there? How were they perceived?

Originally posted by FMF
How well did they run there? How were they perceived?

I'm not sure. There hasn't been one in the Netherlands. The German one has been hailed as a success generally, at least I haven't heard much criticism of it (though I disagree with the scheme). Merkel has been claiming she helped the country through the crisis and she is doing well in opinion polls with elections due today.

How are those elections going?

I think it makes more sense that a German politician running this year did a cash for clunkers for votes... otherwise, the short-term waste in resources is just not worth it for the politician unless they don't know what they're doing with that short-term program. Could Obama's people have severely gaffed again? Should he surround himself with more nation-wide talent and less political loyalists?

Originally posted by telerion
Man, you give people a handout, and they whine when it's not permanent.[/b]

Go figure? Its called the entitlement effect. People no longer are thankful for help, rather, they come to expect it and/or it is never enough.

Originally posted by eljefejesus
How are those elections going?

I think it makes more sense that a German politician running this year did a cash for clunkers for votes... otherwise, the short-term waste in resources is just not worth it for the politician unless they don't know what they're doing with that short-term program. Could Obama's people have severely gaffed again? Should he surround himself with more nation-wide talent and less political loyalists?

Exit polls suggest that Merkel will be able to form a coalition with the conservative liberal FDP, so she will be able to ditch her current coalition partner, the social-democratic SPD.

Originally posted by telerion
It's been a long time. 3 billion is only about 0.02% of our GDP.

Then how about throwing some of that money my way? In fact, I'll even say, "Thank You". In fact, I wont even be as greedy. I'll just ask for a cool million. After all, that's only about 0.00000000001% of our GDP, so I'm sure no one will miss it.

Originally posted by whodey
Then how about throwing some of that money my way? In fact, I'll even say, "Thank You". In fact, I wont even be as greedy. I'll just ask for a cool million. After all, that's only about 0.00000000001% of our GDP, so I'm sure no one will miss it.

If the govt will give me only 1 billion dollars, I will promise to spend it all in under a year.

Originally posted by whodey
Go figure? Its called the entitlement effect. People no longer are thankful for help, rather, they come to expect it and/or it is never enough.

Agreed. Whatever you may think of Obama's policy positions,
when it comes to cash-for-clunkers: bad idea.