The government could have done almost as well by just giving away cars for free, instead of creating an elaborate incentive program, according to an analysis by the automotive information firm Edmunds.com in Santa Monica, Calif.
Well, it’s in how Edmunds crunched the numbers. A valid way to evaluate the program economically, it says, is to look at how many people purchased cars that otherwise wouldn’t have been bought. The firm says that number is about 125,000 cars. By that measure, the government spent $24,000 to generate each sale of a new car.
In all, the government spent $3 billion on a program that provided cash
toward 690,000 car purchases – about $4,348 per car. That makes 565,000 people who got as much as $4,500 to buy a car they would have bought anyway, according to the Edmunds analysis.Analysis may dampen views about the effectiveness of a one of the most visible pieces of President Obama’s $787 economic stimulus package, designed to save jobs across the US.
UPDATE: Based on the effectiveness, accuracy and truth behind the Edmunds report, the White House has gone on the attack against the site. Yes, you read that right. Read it @White House.gov. Going after a benign, non-political auto-site because they dare offer an effective study sends chills down my spine. A White House of wild-eyed college students, MSNBC talking bobbleheads and radical elitist academics using Alinsky-tactics. Which Rule of Radicals would apply here? You tell me.
Cliff over at Another Black Conservative weighs in with this:
Too bad the Obama administration doesn’t have to stomach to take on America’sRead the rest of his take here.
real foes like they do with anyone who seems to disagree with “their version of
the truth”.
Today the White House has chosen to battle, Fox News, The Chamber of Commerce, Rush Limbaugh, Insurance Companies and you can even add the CIA. The White House’s latest war is now with Edmonds.com for disputing the success of Cash For Clunkers.
Also read CJ’s excellent writeup
Via Memeorandum
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