Filed under: Domestic Policy, Economy, Progressivism, Taxes | Tags: "Cash for Clunkers", $24, 000 a car, Economic Illiteracy
The “Cash for Clunkers” program continues to provide entertainment. It seems that the stimulus program which offered new car buyers a maximum $4,500 (taxable) for turning in an old gas guzzler, cost American taxpayers $24,000 for each new car sold.
According to an analysis by the automotive information form Edmunds.com in Santa Monica, California, the government could have done almost as well if they had just given the cars away.
Now, GMAC Financial Services Inc. and the Treasury Department are in talks to prop up the lender with its third bailout. The U.S. Government is likely to inject $2.8 billion to $5.6 billion of capital into Government Motors financial arm, on top of the $12.5 billion that GMAC has received since Dec. 2008. But they want to keep making loans to people who cannot afford to pay them back. Time to set the brakes.
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