8.10.2009

2 Billion: Not Only Aimed at Those Who Qualify

The Senate has approved another $2 billion for the CARS program, which should last until Labor Day. In 2007, there were 254,403,082 registered vehicles on the highway, including buses and motorcycles. Still the majority, 135,932,930 of these vehicles, were cars. While a quarter million vehicles may pale in comparison to this number, the CARS program is reviving consumer interest in the automobile market. Critics of the program scoff at the governments planning and handling of the funds. However, the popularity of this program was a complete surprise, not something Congress can be held accountable for. Instead they decided to encourage this desire to purchase. This program has encouraged the purchase of more fuel efficient vehicles as well. Our government is doing its best to revive the economy, and the attention this program has received will definitely encourage growth. Now, since I don't have access to the specific data that would help me make an absolute statement, I can only speculate. So while some may believe the amount of vehicles sold under this program would or shall be equal to the amount that would have been sold without the CARS program; what should be taken into consideration is the publicity. Besides providing a rebate for buyers, it encourages more people to take a look at the market. People across the nation are looking at dealerships, and discounts, and other incentives to buy. They are evaluating their vehicles, and comparing the value of buying a newer, fuel-efficient car, with their current method of transportation. They see the amount saved, not only from the rebate, but also on gas. The government is encouraging this thinking, by showing faith in the nation's consumers. The additional 2 billion is an investment aimed not only at those who qualify, but those who don't. If the government is willing to invest in the auto industry, why shouldn't the average consumer; the additional 2 billion is meant to aide those who qualify, and encourage the rest of the nation to consider the potential of the investment as well.

1 comment:

  1. I have reviewed this article on my blog. Please visit the website listed below for a link to the article.

    http://theproletariatscorner.blogspot.com/2009/08/cash-for-clunkers-surprisingly.html

    I really enjoyed reading your article.
    Thanks!

    ReplyDelete