Cash for Clunkers…cars… A New Partisan Fight?

It sure looks that way. The Cash for Clunkers program, which gives buyers of new, fuel efficient cars rebates of up to $4500 for turning in old gas guzzlers, has become a political football.

That should be no surprise. What’s interesting is the fighting now is directly because of the program’s popularity. The $1 billion dollars budgeted for the program has quickly run out. Now, the House has passed an additional $2 billion dollars, but the Senate may not follow suit.

So what’s not to like? New car sales during Cash for Clunkers have gone up, dealer inventory has dropped, and in theory, gas guzzling relics are leaving American roads.


The problem, say Republican senators, is the cost and the fear on the part of people like John McCain that speculators are already abusing the program. In fact, he threatens to lead a filibuster against extending Cash for Clunkers any more money.

As usual, the McCains and Jim DeMints of the Congress are just saying no. Never mind that buyers exhausted all the money in the program in about a week. Never mind that Ford will post its first monthly sales increase since 2007. The point is to never give an inch, unless you absolutely have to. The government says it will continue the program until the Senate acts (or doesn’t), but like with health care, one has to ask why the GOP is so good at forging a united front, while Democrats seem to be hedging their bets.

To be sure, no one is saying Cash for Clunkers should go on forever, And yes, there have been some problems, like the government’s Website crashing, and too much paperwork. But still, it’s a popular program even has an environmental benefit (though no one’s talking about it).

Cash For Clunkers

Maybe this time Republicans are overreacting. It’s hard to argue with a program that offers a serious discount during times like these. Americans like Cash for Clunkers. Otherwise, the McCains and DeMints would be arguing it was a bad idea in the first place.

So give it the extra $2 billion, and let it run its course. More than that the Republicans might have a point. US car buyers know that nothing is forever, not zero percent financing, not employee pricing, and certainly not Cash for Clunkers. It’s a shot in the arm the economy could use, and, more importantly, you can’t treat every Obama Administration initiative like it’s health care.

But the Republicans should know that by now, shouldn’t they?

What do you think? More Cash for Clunkers, or no?


2 Comments Add yours

  1. I don`t think that cash for clunkers is good program. But it`s the best way to heal car еconomy.

  2. sanda says:

    At first, I thought you were talking about spending on the military.
    How about some research for clean air cars? Building them? We, the taxpayers
    own a big chunk of some company, don’t we?
    This Congress, looks more and more like the Roman senate in “I, Claudius”, the 1976
    BBC (with more sleaze than I like, see YouTube) series.

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