'); } -->
Some critics are saying that the immensely popular Cash for Clunkers program was just a temporary surge for the auto industry, and it won't last. Well, every day can't be Christmas.
We doubt that many people associated with the auto industry — designers, manufacturers, advertisers, sales personnel, you name it — hold ill feelings toward Cash for Clunkers. After all, it resulted in nearly 700,000 new car sales during the past month.
The White House Council of Economic Advisers said the program will boost economic growth in the third quarter by 0.3 to 0.4 percentage points because of the increased car sales in July and August. An estimated 42,000 jobs will be created or saved during the second half of the year, the White House said.
“Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel-efficient cars that will save them money and improve the environment,” Transportation Secretary Ray LaHood said.
Some might gripe that of the top four cars sold under the program, three were Japanese — the Toyota Corolla, the Honda Civic and the Toyota Camry. The fourth was the Ford Focus.
But how can anyone complain when all four cars are made in the United States?
While Cash for Clunkers always was designed as a temporary boost for a hurting sector of the economy, it could have long-lasting results. As LaHood noted, it took a lot of gas hogs off the road and put people in more fuel-efficient vehicles, a benefit for owners and the environment.
Cash for Clunkers undoubtedly spurred many people to buy new cars when they might otherwise have held on to their old vehicles for months or even years. That, in turn, could help instigate another benefit for auto dealers: new car envy.
As the Council of Economic Advisers states, all this car buying helped stimulate overall economic growth. It also might have a beneficial spinoff for state governments, with new car owners paying more in registration fees and car taxes.
Cash for Clunkers was a creative innovative way to help ease an ailing industry through hard times. What's next?
How about Cash for Old Refrigerators?
@Nyx.CommentBody@