Cash for Clunkers can be single-handedly credited for the surge in automotive sales. Cash for Clunkers is the tax-payer sponsored program in which a generous amount of cash is paid for trading in a gas guzzling automobile while purchasing a more fuel efficient vehicle. The program had grand intentions but was it only a band-aid covering a far greater economic problem? It would stimulate the automobile industry and possibly create jobs while removing some less efficient vehicles from the road. The environment benefits, automakers benefit, and of course the consumer benefits. This is a win-win-win situation. The only downside is that American tax-payers must somehow foot the bill.
The American economy is very fragile, especially right now. There are many complicated contributing factors. Unemployment is rising at an alarming rate. Inflation is always a negative factor on retail purchases and it may increase dramatically as a direct result of the United States' rising debt. Rising property taxes taking a hold on home and business owners who are already struggling with increasing utility rates, insurance rates, and other property owner expenses. As well as a trade deficit that couldspell an end to the American way of life. The battle between the collection of taxes versus government payouts and overblown public programs grows more heated every day. The United States operates in the red, owing more money today than ever before in its long history. The government deficit has grown beyond reasonable limits and yet another government sponsored program may not payoff the way it is designed.
Cash for Clunkers cost the American tax-payer approximately three billion dollars. Critics of the bill have remarked that many of the purchased cars using the free government money would have been purchased even if there was no program. Critics have also pointed out that many of the vehicles that were traded in were not much less efficient than some of the vehicles that were purchased from the dealer. Some dealers actually complained that their inventory was seriously drained due to the program, literally causing a shortage of vehicles for potential buyers. When all the dust settles and Cash for Clunkers is allowed some time to fade into history, the American tax-payer will be able to determine if Cash for Clunkers was really worth it.