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Cash for Clunkers

Cash for Clunkers

money-flying-awayBy all accounts, the cash for clunkers program has been a huge success. Never mind the fact that auto dealerships want nothing to do with the bureaucratic red tape and if at all possible will steer a customer toward conventional financing. The fact of the matter is that it has been a real boost to the economy. So who really has benefited from this program?
  • Some consumers, who traded up from old gas guzzlers to spiffy new fuel-efficient models,
  • Auto dealers, who were able to dump inventory and pay their financiers,
  • Banks, who all of a sudden, had some new auto loan volume, with up to $4,500 down-payments,
  • Auto companies, especially Ford, Toyota, Honda and Nissan, who led the pack in sales. Conspicuously absent from the list were the beneficiaries of the government's bailout program, General Motors and Chrysler. The car companies were also able to unload a bunch of inventory,
  • Unions, who conceivably will be called back to work to replace all of that sold inventory,
  • Steel manufacturers, such as Nucor, who will be able to buy cheap scrap steel and turn it into something usable,
  • The green movement, because these new cars will be spitting out fewer greenhouse gas emissions,
  • And the biggest winner of all, the Obama Administration, who was able to satisfy a number of constuencies and supporters, namely, the unions, the green folks, and the car companies they now run (GM and Chrysler). In the process, the President will be able to boast how this will boost the nation's Gross Domestic Product and single-handedly pull us out of recession.
With so many winners, how can there be any losers? Of course, [...]
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