"Cash for Clunkers" Running on Empty

Posted: Jul 31, 2009 9:35 AM
"Cash for Clunkers" has come to a screeching halt, after having spent less than one week on the road.

The government announced Thursday that it would suspend the program because they've run out of money, unable to keep up with the demand.

A number of dealers scrambled to the government Web site before midnight last night to try and secure funds for planned car trade-ins.  One dealer, Andy Beloff, said "People are loving it.  It's wonderful.  It's a great stimulus package."  But when asked if the government was managing the program well, he replied, "No. No."

The $1 billion in government funding allotted to the "clunkers" program meant that every dealership in America could trade 12 cars each to break even.  However, Beloff's dealership lot has roughly 40 clunkers now waiting to shipped to the junkyard.  Clearly, someone underestimated the demand here. 

Lawmakers who shepherded the "clunkers" program initiative through Congress are now hoping federal stimulus dollars that have not been spent yet might be diverted into paying out more money to trade clunkers for cars with better fuel economy. 

Quick question: with such a bumble in estimating the demand for a car trade-in program, how many want these same lawmakers to manage our families' health care?  Anyone?

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