Cash For Clunkers To Be Suspended (Already?)

Welll, that was quick. The program started just last Friday.

AP sources: Govt to suspend 'cash for clunkers' (7/30/09 AP)

"The government plans to suspend its popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases, congressional officials said Thursday.

"The Transportation Department called lawmakers' offices to alert them to the decision to suspend the program at midnight Thursday. The program offers owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle."

"A survey of 2,000 dealers by the National Automobile Dealers Association found about 25,000 deals had not yet approved by NHTSA, or nearly 13 trades per store. It raised concerns that with about 23,000 dealers taking part in the program, auto dealers may already have surpassed the 250,000 vehicle sales funded by the $1 billion program."

About the only "stimulus" money that has worked and it's suspended in one week. And lawmakers want more money to keep it going.

"Even before the suspension, some in Congress were seeking more money for the auto sales stimulus. Rep. Candice Miller, R-Mich., wrote in a letter to House leaders on Wednesday requesting additional funding for the program.

""This is simply the most stimulative $1 billion the federal government has spent during the entire economic downturn," Miller said Thursday. "The federal government must come up with more money, immediately, to keep this program going.""

Ummm, I don't know about that. My car is an old SAAB (1988) but it gets too good a mileage and does not qualify. My truck is even older but it gets even better mileage. So, as a taxpayer, I get to fund this program, with no personal benefit. There's no incentive for me to keep it going.

Alternatively, since this program was attached, for some unknown reason, to H.R. 2346 "Supplemental Appropriation Act of 2009", maybe the government can ditch some of the projects in the bill and fund the cash for clunkers. My suggestion would be:

• Ditch the new embassy in Af-Pak and save $1 billion
• Let the World Bank fight the world poverty on its own and get that $3.7 billion
• Don't assist Jordan, Lebannon, Egypt and Israel, and save about $1 billion
• Don't assist IMF and get that $7.6 billion

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