Let’s prime the pump and offer $3,500 to $4,500 rebate incentives to anyone turning in a clunker for a newer, higher mileage automobile. This will be one effective way to stimulate the economy and “bring back the automotive industry in America”. One problem. Aside from the fact that the first billion dollar program may have just expired is the real question about the success of this program. Which auto manufacturer and country will benefit from these new auto sales?
Did we have strings attached stating that the new vehicle must be produced in Detroit by an American manufacturer?
Apparently the government is withholding data that might reveal that the cars of choice are Honda’s, Hyundai’s and Toyotas, rather than Chrysler, Ford or GM.
That in itself creates questions. We drive Toyota’s that were manufactured in Kentucky, home of their largest manufacturing facility in North America.
The parts in any vehicle come from several different countries. Each vehicle should have a domestic parts content label. Even the Big Three obtain some of their parts from Canada.
According to www.cars.com they report that “it’s hard to deny that among the most popular U.S.-built cars and trucks, the models with the highest domestic content ratings come from Detroit automakers. Of the 35 most popular U.S.-built 2008 and 2009 models — based on sales through May 31, 2008 — 43 percent of GM, Ford and Chrysler contenders had domestic content ratings of 75 percent or higher. In comparison, just 25 percent of the Nissan, Honda, Hyundai and Toyota models on the list achieved that.”
So the question remains. While the rebate program may take gas guzzlers off the roads, will Detroit get a boost from this latest bailout?
Hey Larry, let me get this out before the other do….Blah, Blah, Blah waste of Money….Illegal war George Bush, Blah, Blah, Blah Dick Cheny….Halliburton…..Waste of Money, Dear Leader Chairman MaoBama….Don’t ask questions,…he is not George Bush……Blah Iraq AHHH…GITMO…..
I think I got most of it, so now if there is a question or comment, please fee free…
Who cares? The local dealers are selling cars, older less clean and gas efficent cars are off the road. Money is being saved, oil imports reduced and jobs created. We should keep it going for a couple of years.
Besides there is not a purely US made car now as you point out. So are you saying the government should pick what cars people buy?. I thought that was against free market principles.
Jim. We have friends in the auto industry who are impacted by this recession. Some are on the east coast and in the south. My point is that once again we have elected members of Congress who made assumptions that are invalid. While we all hope that Detroit and surrounding locals can rehire workers, this program is simply not big enough to lead to any long term solutions and is costing taxpayers money.
The program did not mandate that only 100% US manufactured autos, built with 100% US parts, qualify for the rebates.
And yes, we drive Toyota vehicles and have for a number of years. Not taking anything away from the Big Three, whose quality has allegedly improved, but we have been extremely happy with the Toyota track record on all of our cars. As I look at the sticker on my VIN I can see that it is not imported from a factory in Japan.
So here’s why I think the program is stupid….you can trade in your klunker, but you have to buy a brand new car……ummmmmm, if you are driving an old klunker, can you afford a brand new car?
Larry,
Jon Stewart did a kick-ass job (as usual) last night on this subject, exposing these lame “talking points”, calling it the
“crank cycle”.
Fox News says it, the dumbbells repeat it and Fox News reports on the dumbbells. Bravo Larry, mission accomplished!
#1 Bigmarkod,
You may not think that any discussion of how this country allocates its’ tax dollars is relevant, but those of us in the reality based community find it EXTREMELY RELEVANT. Some of us even believe that spending our tax dollars in and on the US and its citizens rather than on unnecessary and inflammatory foreign wars would be a good thing, although I know defense contractors, their shills in congress and ignorant dupes may disagree.
anonster.
Let’s see where we go from here. You are a very bright light on the Juiceblog.
It’s OK for you to again subsidize government motors and the auto workers union.
How about giving rebates to every other industry in America? You know, those other US manufactured products where the local sources continue laying off workers by the thousands.
Oh, this is just a beginning. Great. When does your Air China flight depart and how much money are you hoping to borrow this week to pay for all these rebates?
Yup, the check is in the mail
Larry,
It’s all about jobs,keeping them and creating them, because we CAN’T have an economic recovery without them.
I know you conservatives think tax cuts are the answer, but what happened under Bush Jr.? We had massive tax cuts and LOST 25% of our manufacturing jobs, corporations didn’t re-invest and retool, no they took that money and paid out dividends and huge salaries and moved their manufacturing operations overseas, hardly a recipe for SUSTAINED economic growth.
Look at Bush Jr’s. DISMAL record on employment, after 8 years in office his “job creation” number; 3 million, compare that to Clinton’s 23.1 million “jobs created”.
Obama INHERITED this mess, seven months in he’s just trying to staunch the bleeding, there are no magic answers or easy perfect solutions to our problems. Funny, I don’t see Republicans offering ANY new ideas or solutions, their only role has been to criticize and complain. They have taken the “our way or the highway” stance, well they had their way under Bush Jr. and their way brought us to the brink of disaster.
You Republicans may defeat Obama by your “death-by-a-thousand-cuts” strategy, just like you did Bill Clinton, but remember; this is NOT 1996, when we had a strong economy and were the world’s only powerhouse, no this 2009 and the US is in a very different and weakened position, you may take down Obama, but you will also take the country down with him.
I agree that it is important to promote American jobs, but in this case there is not a pure American product to promote.
Most people will try to buy American if the price is competitive.
Anonster is right on target, no answer is not acceptable, which is right now what the Republicans are offering
anonster. “you may take down Obama” are your words, not mine. Let’s engage in a little elementary school math. In addition to having 3 dozen unaccountable czar’s this president has full control of both the House and Senate where bills are created and approved.
While we would welcmethat control we simply lack the numbers.
The only person to take down any president is the man and his policies once John Q Citizen realizes that there is no free lunch.
That should be the outcome unless you engage in “redistribution of wealth” and take from those who earned it and paid taxes which is your agenda.
Jim. Are you saying that the stimulus has been a success?
Months ago I listed areas of manufacturing that took a one way ticket out of America. That group extended beyond the auotmbile industry. Its called globalization. I recall candidate Obama putting foot in mouth and upsetting our good neighbor to the north regarding NAFTA. “Protectionism” as a solution to save and protect jobs will not work. Ross Perot tried it when running against Bush 41 where he only convinced 19 percent of the vote. I believe Ross did or should have received a big Thank You note form Bill Clinton for making the difference in Bill defeating president Bush 41 in his bid for reelection.
Have you visited Pittsburg,PA or Cleveland, Ohio?
Let me know if the (former)steel mills are still operating around the clock.
Did you purchase a new big screen TV at Costco?
If so, where was it manufactured?
And what brand of digital camera do you own?
Nikon, Olympus, Panasonic, Pentax or Sony.
Take your pick. None of which are made in the USA
Lets just get one thing straight. This program, Cash for Clunkers”, is a bailout for dealers and various businesses but NOT consumers. Those that recently bought under this program, thinking they had a great deal, got screwed big time. We all understand this, don’t we?
Now if you agree that the auto industry needs or deserves a bailout, then fine. But I hate it when I hear politicians claiming that this program helps consumers. Not true, plain BS!!
#9 Larry,
The “take down’ I refer to, is by our conservative corporate media, the 24/7 negative coverage, from FOX and AM radio ( after which all the other corporate media outlets then take their lead ).
You talk like your team hasn’t had “control”, until two years ago your team had full control and what a disaster it was.
STOP pretending that Obama created this mess, just because our corporate media NEVER utters his name, BUSH and the REPUBLICANS ARE STILL RESPONSIBLE FOR OUR PROBLEMS!
STOP acting like an impatient child, we didn’t get into this mess overnight and we won’t get out of it any time soon. Obama has been POTUS for 7 months, the stimulus has been in place for 6 months and according to ProPublica ONLY 12% of the stimulus has been used. Are we there yet? Are we there yet? Are we there yet? NO.
Here’s a little reality check on how FAR we’ve really come;
ECONOMIX Explaining the science of everyday life
The First Fiscal Stimulus Worked. Should We Do Another?
by Peter Boone ( Chairman of Effective Intervention a British-based charity, and a research associate at the Center for Economic Performance, London School of Economics) and Simon Johnson( a senior fellow at the Peterson Institute for International Economics and the former Chief Economist at the IMF )
“President Obama and his advisors seem to have averted a global financial meltdown. …
This is a major achievement. We cannot emphasize enough HOW BAD THE WORLD’S FINANCIAL MARKETS HAVE LOOKED at various points since September- including during the first month or so of President Obama’s administration. Market attitudes have changed profoundly since the beginning of March. It’s no longer “sell the collapse” but much more “buy the dips”; this is the essential ingredient to stave off bank runs and to keep markets from spiraling downward in self-fulfilling collapse.
How did the Obama team pull this off? In part, it was with the HUGE FISCAL STIMULUS enacted in February. WHILE INCREASED GOVERNMENT SPENDING FEEDS THROUGH INTO THE ECONOMY ONLY SLOWLY, THE BIG PUSH TO SPEND DEMONSTRATED THAT THE GOVERNMENT WAS WILLING TO BORROW HEAVILY TO OFFSET ANY LIKLY FALL IN SPENDING BY HOUSEHOLDS AND FIRMS. THIS IN TURN REASSURED EVERYONE THAT THE ECONOMY COULD NOT DECLINE TOO FAR OR TOO FAST. ….
But in large part the restoration of confidence is due to a targeted and appropriately sized fiscal stimulus.”
In short, Obama staved off economic calamity, if only he had an (R) after his name,maybe then you could admit it.
anonster.
Are we to believe that you sat on your thumbs during the 8 years of the Bush 43 administration and never took him to task for his actions?
Evey president is fair game. If they can’t take it that’s their problem. However, if it bothers you that some of us disagree with the fast track policies of this president than it’s your problem.
#13 Larry,
Bush took plenty of criticism , but AFTER he had started an unnecessary war, AFTER he peopled his administration with incompetent cronies,AFTER he screwed with the Constitution, AFTER he let New Orleans drown, AFTER he politicized the Justice Department and AFTER HE F-ED up the economy (just to name a few of his screw ups).
Fast-track? The economy was in MELTDOWN! This “fast-track” garbage is just ANOTHER right-wing talking point.
anonster.
Is the war in Afghanistan, in which American men and women in uniform are laying down their lives,
an “unnecessary war”?
Be consistent in making your argument.
Since Jan 20th President Bush 43 was probably at his Crawford TX. Ranch while your good buddy is sitting in that big White House in DC where “he” now calls the shots.
#15 Larry,
I think I’ve been very consistent, I did not protest our action in Afghanistan, I did protest the war in Iraq.
I’m not sure if the Afghanistan war was “necessary”, but I do know that we could have and SHOULD have had done a much better job there, with and ‘end-game’ and a long term strategy for peace.
Of course, we ALL know what happened, Bush and Cheney couldn’t wait to go into Iraq, so Afghanistan was shoved to the back burner and we started an UNNECESSARY and VERY COSTLY war by attacking Iraq.
Larry, try and be honest with yourself, if Bill Clinton had left Bush, two unfinished wars, an economy in melt-down, a legacy of virtually no job creation, a massive amount of deficit and debt, do you think that you’d be saying 7 months later that this is all Bush’s fault? I think we both know the answer to that question.
anonster.
How about a history lesson from a man who was there. No, not me or a CNN reporter. A key member of the CIA who was in Afghanistan when president Clinton’s administration hit the “mission” kill switch. I refer to a time when we had a key player in our sights and called off the mission.
Just as Bush 41 disappointed the Shiite Muslims in the south after Operation Desert Storm by encouraging them to overthrow Saddam with a coup yet leaving Saddam with his helicopter gunships, Bill Clinton’s policy advisors cost us the trust of the Northern Alliance in Afghanistan whose forces died trusting in our support by aborting US support for a key mission. Taking out that “target” may have enabled us to avoid 9/11