-By Warner Todd Huston
Obama’s “Cash for Clunkers” program was his idea to save American auto buyers money and help “green” the roads at the same time. But the program was a monumental failure. It was so bad it has now been determined that it didn’t save anyone anything. In fact, it cost America 6 billion in wasted dollars!
Along with the obvious problems with the program that showed up right at the beginning, now that the long term effects are starting to be quantified, it has become clear that the program forced auto buyer to spend less on their autos tan they would have costing the auto industry some $3 billion in sales.
A new study written by Mark Hoekstra, Steven L. Puller and Jeremy West and published by the National Bureau of Economic Research has found that the program caused buyers to spend about $4,600 less per purchase. Totaled that is about a $3 billion loss in revenue to the auto industry.
Then you add the other 3 billion Obama lavished onto the auto industry and we get $6 in federal waste.
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Failure: ‘Cash For Clunkers’ Cost America $6 Billion in Wasted Money”