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Old 08-08-2009, 04:27 PM
Gravy Gravy is offline
Join Date: Feb 2008
Location: Cincinnati, Ohio
Posts: 50
Default Re: Shaved Head Edition (Tim Fernholz & Matt Continetti)

Not sure how much post-purchase stimulation will result from the Clunkers. Most clunkers are fully paid for and most new cars, even with the rebate, aren't. You burn a little less fuel, but you assume car payments and higher insurance rates. Of course the later expenditures also feed back into the economy so it is highly complex. What I don't like about the Clunkers program is it is such an arbitrary choice of stimulation. Why not a couple of billion to subsidize air fares on domestic routes? What about motel vouchers? Why do car manufacturers and dealers get the juice and how was the decision reached? It feels so arbitrary, that it would have been better to make it completely arbitrary....here is $100 coupon to do whatever you want with, so long as you spend it by August 31, 2009.
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