Cash for Clunkers: Failure or Success

We recently reported that the Cash for Clunkers program is set to end on Monday and with over half a million cars already scrapped under the scheme, there is now less gas guzzling vehicles on the road. CARS (Car Allowance Rebate System) have not been out of the news since its launch, and we now ask if the scheme has been a failure or success.

AP has said that it certainly provided a much needed boast for the ailing auto-industry, but this was only for the short term. For a more permanent positive result, the U.S. government needs to do much more than just throw money at the problem.

The Cash for Clunkers program has now cost the U.S. taxpayer $3 billion, only $1 billion was put aside, but that ran out in days and a further $2 billion was added to the program. This figure is now about to run dry, which is why the program is now set to end on Monday.

AP added that this latest policy from the Obama administration was a bit of a lemon and will no doubt be debated for years to come. The early assessment of the program has certainly proved a success Toyota, Ford and others have reported production gains and GM are all set to rehire more than 1,300 workers.

Do you think the Cash for Clunkers program was a Failure or Success?

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