So it appears people are using this deal to downsize rather than just buy a new car. I can get behind that, though I’d honestly prefer that they be buying used. Not that I claim to understand economics.

I can see how the added taxes will force me to a lower standard of living so my tax dollars can support those poorly managed businesses and people who spent with reckless abandon when I’ve always lived within my means.
Most of these auto sales are being financed and too much debt/loans are what caused the problem with our economy to begin with. If people were paying cash for those cars then it would help in the long term however I just see a lot of auto repossessions or a car payer bail out in the future – I sincerely hope I’m wrong on that one.

I also fail to see how it is the responsibility of a Democratic Republic to bail out a baldy managed private company.
If you never allow a child to stumble & walk on their own they will never learn.

BTW – My family restores classic Chevy & Dodge vehicles. I love chevies with a deep passion & hate Ford to a illogical almost religious level.
Sadly, while GM & such were making the gas guzzlers & discontinuing smaller cars Ford was releasing the Focus. Ford was running their show like a business with a long term focus while the rest were focusing on the here & now. And yes, I know there was more to it for GM – like the union stuff but I’m trying to keep this short

Oh & one other thing – 3 people here at work have traded their cars in for SUVs that get lower mileage then their original car. The mileage part is of their own admission – they “upgraded to a better vehicle since the govt is helping with the down payment” just like people upgraded their houses during the housing boom. I fail to see how that helps the planet.

@Rob: Nope, the tone was just right, and your points are well made. We agree that there is little about the original stimulus package that was stimulative – and if there is any “stimulus,” it is backloaded to roll out later rather than sooner. Considering only 10-15% of the stimulus has actually been spent 6 months in makes me think an immediate boost to the economy was not the main priority – it was expanding the size of the government.

Jury’s still out on Cash for Clunkers, since the administration will not release the numbers from round one. My guess is that consumers chose more foreign manufactured cars, and those on the higher end of allowable MPG ratings, frustrating economists and environmentalists alike. I know the program has helped local dealers, particularly those in the hardest hit areas, but I wonder where we’ll be when the program ends and demand again dries up.

I know there are alot of conservative bloggers who prefer to see Detroit Michigan and California go over the edge (serves them right) and think the only choice is to let the markets work. Well I don’t know about you but I have no desire to be living in a hobo camp lining up at a soup kitchen because were in the great depression part 2.

AS to the Obama Stimulus plan, I do agree with most bloggers on this one, for the simple reason it’s too little and too late. It’s mostly spent on welfare type payments and not near near enough on projects that will create short term employment (enough to get us through the worse).

Unfortunately I expect Obama to be back for stimulus package nr 2.

Well I don’t agree with everything Paul Krugman says I would recommend reading his blog as he makes some very powerful arguments against the conservative dogma on what needs to be done.

PS hope it doesn’t come across as too argumentative, it’s hard to get the tone right when talking politics

@Jessica: You have made some good points, but left out the financial aspects of this program. The fact it is costing taxpayers $3 billion dollars in money that we don’t have negates most, if not all, of the positive side effects of Cash for Clunkers, in my opinion.

Once again we blame the government and industry for our problems. As we have shown ourselves to be a nation of people who freaked out over cheap cars without considering if we need one or what it would cost overall, just like we were a nation of people who bought houses we couldn’t afford because the banks said we could. The lack of personally responsibility you hear is incredibly frustrating. Whether you like the problem or not, don’t blame anyone but the consumer for the fact that it took off like gangbusters.

BUT – when a car is junked properly, 95% of it is recycled. It does not just end up in a landfill.