|
Updated: 7:48 PM Jul 31, 2009
UPDATE: "Cash for Clunkers" Gets Economic Boost
With the $1 billion "cash for clunkers" rebate program running on "E," the House has rushed in $2 billion in additional funding. All local representatives, with the exception of Ohio Congresswoman Jean Schmidt (R), voted in favor of the funding.
Posted: 7:36 PM Jul 30, 2009Reporter: Associated Press; Bill Murray Email Address: bill.murray@wsaz.com |
|
51 Comments 
Update on Friday, July 31st
WASHINGTON (AP) - With the $1 billion "cash for clunkers" rebate program running on "E," the House has rushed in $2 billion in additional funding.
The bill passed easily on a vote of 316-109. Lawmakers acted within hours of learning that the program was running out of money. The quick vote was applauded by President Barack Obama, who said the program has succeeded well beyond expectations.
The Senate will take up additional funding next week.
The Car Allowance Rebate System, or CARS, provides federal subsidies of $3,500 or $4,500 to car and truck owners who trade in their clunkers for new vehicles that are more fuel-efficient.
Democratic Sen. Carl Levin of Michigan, says the Obama administration assured lawmakers that deals made through the program will be honored. But Levin suggested that interested consumers should move quickly.
White House press secretary Robert Gibbs says the program will be alive "this weekend" but would not commit to any timeframe beyond that.
Original story on Thursday, July 30th
WASHINGTON (AP) - Congressional officials say the government plans to suspend the popular "cash for clunkers" program amid concerns it could quickly use up the $1 billion in rebates for new car purchases.
The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.
The congressional officials spoke on condition of anonymity because they were not authorized to speak publicly.
Through late Wednesday, 22,782 vehicles had been purchased through the program and nearly $96 million had been spent. But dealers raised concerns of large backlogs in the system, prompting the suspension.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
Latest Comments
Cash for clunkers is just redistribution to certain consumers and to the auto industry; it is more BAILOUT dressed up as environmental policy. Congress should end the program, not expand it.
PROGRAM is a BAIL-OUT...Anyone who can't see this is walking around with their eyes shut....Government policy should not favor some industries at the expense of others, but that is exactly what cash for clunkers does. The program helps consumers who can take advantage, and it increases profit and employment in the auto industry. But funding for the program comes from all other taxpayers, so it harms the consumers and industries not supported by the program. Thus cash for clunkers creates winners and losers based on political considerations, not economic values. Whether or not government spending is a good way to stimulate the economy, the specific kind embodied in this program is misguided because it distorts the economy's allocation of resources across consumers and industries.
Any spending stimulus, of course, tends to favor some sectors over others, which is one reason stimulus is better accomplished via reductions in tax rates, not increased spending. Tax cuts improve the incentives to work, save and invest, thereby making the economy more productive going forward. Reductions in tax rates are neutral across sectors and therefore let private valuations of costs and benefits -- not political connections -- determine winners and losers. Cash for clunkers is therefore just redistribution to certain consumers and to the auto industry; it is more bailout dressed up as environmental policy. Congress should end the program, not expand it.
|
|
|
Popular Searches Powered by Local.com |
- UPDATE: Two More Arrests in Parking Lot Armed Robbery
- Convicted Sex Offender Wanted
- Three Aging W.Va. Power Plants Closing
- UPDATE: Man Dies in Early Morning Fire in McArthur, Ohio
- IRS Warns to Expect Some Refund Delays
- NASCAR Racer Visits Charleston
- UPDATE: Man Charged in Violent Armed Robbery at Huntington Bar
- St. Albans Man Arrested in Large Drug Bust
- UPDATE: Mother Awaiting Sentence Faces More Trouble
- Spoof Alert in Athens County
- UPDATE: Vigil for Missing 3-Year-Old Girl
430 Comments - UPDATE: New Chief Deputy in Mason County Releases Department Mission Statement
148 Comments - UPDATE: Woman Fires Attorney in Sniper Digging Case Lawsuit
127 Comments - UPDATE: Mother Awaiting Sentence Faces More Trouble
61 Comments - UPDATE: Some Questions Remain Unanswered in Deadly CO Leak
48 Comments - UPDATE: Man Accused of Victimizing Elderly Found Guilty of Kidnapping; Victim Dies
40 Comments
- 126 reported killed as attacks escalate
- Doctor in Homs: We're all waiting to die
- Hacked e-mails reveal al-Assad spin
- Stay out U.S.
- Deep freeze overloads Ukraine EMS
- Ousted Maldives president faces arrest
- Same-sex marriage OK'd in Washington
- 911 response probed in Powell killings
- Opinion: Google knows too much
- Embattled LA school set to reopen
- Same-sex marriage OK'd in Washington
- Mississippi pardons to be challenged at court hearing
- Authorites probe 911 response to Josh Powell's home
- Official: Suspect in 'South Park' threats to plead guilty
- Rutgers student's suicide shouldn't define him, brother says
- University of Florida suspends fraternity for 'physical hazing incident'
- Victim in Atlanta video beating to speak out
- The deadly path to legal status
- Sound recordings amend history
- Deep freeze puts strain on Ukrainian EMS
- More than 700 suffer food poisoning after Mexico rally
- Spy agency called before Pakistani high court
- Court suspends Spain's most famous judge
- Deposed president faces arrest in the Maldives
- Greek leaders ready to back austerity deal
- Officials: Drone strike kills 4 in Pakistan
- Asylum or 'medical leave' for Chinese crime buster?
- UK: 'No negotiations' on Falklands
- Betting on Olympians -- for charity
- Band camp, other clubs suspended
- Champion remembered at event
- More members accused of hazing
- Sandusky urged to stay inside
- Words matter in Penn State case
- Out-of-county jury for Sandusky?
- 4th accuser drops abuse allegations
- Accuser pleads guilty to child sex
- Attorney: Victims to sue university
- Miss. high court considers pardons
- Seth Davis: Eustachy's second chance could lead Southern Miss to NCAAs
- Southern Miss a 7 seed in latest bracket
- All eyes on Tiger at Pebble Beach
- Rivers, Duke sink Tar Heels at buzzer
- Leafs, Wings to play in 'Big House' Winter Classic
- Report: Manning still unable to make most throws
- Syracuse earns OT win vs. Hoyas
- Memphis joining Big East in 2013
- Lin dazzles again as Knicks win
- SB Nation: Explaining Lin's surprise early success
 |
SOMC
Very good things are happening here. Click here to learn more |
 |
Click here for school closings and delays |
 |
Watch the Lottery Live Monday - Saturday @ 6:59pm on WSAZ NewsChannel 3. Need to check your numbers? Click here. |
 |
Watch the Ohio Lottery Drawings weeknights @ 7:29pm and Cash Explosion Saturday @ 7:30pm on WSAZ NewsChannel 3. |
 |
Click here to donate and help WSAZ help children at risk in our region. Thank you. |
 |
Click here to see how our partners are making Moms and women's lives easier. |
