August 2009
Cash for Clunker - Obama Stimulus Program
The phrase "Cash For Clunkers" has been all over the media every bit of belatedly too for expert reason. Cash For Clunkers is hence far the virtually successful economical stimulus program, this notion is impressive past times whatever mensurate simply is fifty-fifty to a greater extent than impressive when you lot accept inwards the fact that it makes upwards less so 1% of the stimulus budget. Not to elevate that this figure was increased 3 crimp from the master copy 1 billion dollar budget to 3 billion which was passed past times congress due to the overwhelming success.
What is the Cash For Clunkers Program?
The Cash For Clunkers Program is a Consumer spending too automotive manufacture stimulus plan that awards consumers amongst a substantial rebate inwards the amount of 3,500-4,500 dollars for coming together the following:
The consumer must merchandise inwards a "clunker" which is a term to depict a older car that gets pathetic gas mileage. Clunkers buy the farm eighteen or less miles to the gallon.
The consumer must so buy a novel car that is fuel efficient too at to the lowest degree 4 miles to the gallon to a greater extent than efficient so the clunker traded in. The Incentive or amount of the rebate awarded is much higher for a car that is 10 miles to the gallon to a greater extent than efficient so the clunker traded in.
- 3500 dollars is awarded for a iv mile improvement.
- 4500 dollars is awarded for a 10 mile improvement.
As mentioned inwards the start of this article the Cash For Clunkers Program performed much amend so expected which was the catalyst behind congress's determination to triple the budget. Taking a aspect at the fiscal numbers describing the economical activity makes the popularity of the Obama stimulus plan quite evident.
Resulting Economic Activity of the Cash For Clunkers Program
- Approximately 700,000 - 750,000 Transactions or novel car purchases
- Approximately xx billion dollars inwards sales
Economic Activity surged too to a greater extent than importantly so how much is where. Consumer spending every bit good every bit the car sales were 2 of the virtually troubled aspects of the recession too these were the beneficiaries of Obama's Cash For Clunkers Program.
Consumer Value
The Cash For Clunkers Program allowed the consumer participants to obtain substantial value per dollar.
Environmental Implications
This plan volition plainly attention the surround because of the programs focus on fuel efficiency.
Gas Prices
The terms of fuel or gas volition inherit downward pressure level because of the quarter 1000000 clunkers that guide maintain been taken off the route too replaced amongst a to a greater extent than fuel efficient counter part.
Jobs too employment
This plan volition plainly attention improve the occupation numbers given the increased consumer spending.
Credit too Lending Activity
These novel car purchases gave an upward force to lending activity, every bit consumers took on secured debt to finance these purchases.
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