Cash for Clunkers Success

[ArlJim78]

Originally Posted by Riot

But they were not buying cars. That is the point. We were in a deep recession last year, deeping towards a depression. Nobody was buying cars. Auto workers were laid off. The industry was in deep trouble. The program obviously was a success in that it got thousands spending money in the economy. Which is what is needed to get out of a recession.

people weren't buying cars for a reason and they still won't be buying cars now that this program has ended. the last thing we need is more of the phony borrow and consume economy. we need to save and invest.

this is only a temporary artificial demand, it means nothing in the long run with regard to the real economy. it will make a spike in car sales to be followed by a trough.

I'll bet you didn't know that during the runup to this program car prices were raised, so the deal buyers got wasn't all you might think.

this has next to nothing to do with when the recession ends. government spending does not create wealth or growth, just the opposite.