NEW YORK (CNNMoney.com) - The Obama administration on Thursday lashed out at a prominent critic of its Cash for Clunkers program, arguing that the popular trade-in initiative helped give the auto industry and the economy a much needed boost in the past few months.
In a blog post on whitehouse.gov, the administration argued that a report on Clunkers by automotive Web site Edmunds.com "doesn't withstand even basic scrutiny" and is based on "implausible assumptions."
On Wednesday, Edmunds.com released a study that argued Cash for Clunkers did not have a great impact on the auto industry. The report said that 690,000 new vehicles were sold under the program last summer, but that only 125,000 of them would not have been sold without the Clunkers rebates.
As a result, the report said, the administration's economic claims for the program "have been rendered quite weak."
Full story on CNNMoney.com
The farcical Cash For Clunkers program illustrates two things: 1 Tax cuts work to stimulate economic activity, and 2 our government can't even run a simple rebate program without screwing it up royally.
Another fine example of our government at work. The credit of $4,000 per car to qualifying buyers cost the taxpayers $24,000 per car. Our government couldn't run a one car funeral and they want to run our health care system!!!! If the idiots had to pay for all the overages on their programs, they wouldn't invent them.
Even if some of the cars would have been sold anyway the result would have been a finacial incentive for the purchaser which is a form of direct stimulous to the taxpayer.
Not sure what people are complaining about. This was the most effective stimulus programs they had.
Cash for Clunkers was a "OK" idea. It was not the huge success the WH likes to take credit for, but it was a somewhat reasonable bailout attempt.
The only people this helped was illegal aliens. the mexicans were able to turn in their jalopies and then skip back across the border. Wake up America! Stop saying how thankful you are to have such a president. He is a fraud, liar, hypocrit, and coward. Things are messed up when those are the virtues some americans cherish. We need Bush back, bad!
"Quick, someone is disagreeing with our Administration's hyperbole. Let's ridicule and stamp out those evil people."
It seems that the main effect of the cash for clunkers was to inflate the prices of older used vehicles! This helps the sellers, but hurts the buyers, many of whom are lower income!
All of obama's policies are weak,nothing new about that. Don't know if jimmy carter was even as lame is this buffoon is. How in the world did we ever elect this moron.
125,000, How do you know?
Please Give Me Tomorrows Lotto Numbers!
Only the arrogant and unabashed O'ministration could "fight back" against overwhelming evidence that the government overhead contributed to an obscenely bloated "Clunker" initiate. Another Big Goverment flaming failure. Just wait until we get Government-run Insurance and Health Care. YIKES!!!!!!
It's far cheaper to simply hand out money – like in tax reductions! Works every time its tried...
How Do You Know. Where's the proof!
Please Give Me Tomorrows Lotto Numbers!
Go Study Health Care
The War, 20,000 more troops or 50,000 will get it done
You Have any Home Sales Stats.
Hey Edmunds key words to study.
" implausible assumptions"
I believe the report also said that US taxpayers ended up paying about $25,000 per vehicle. Another government waste, can't wait till they run healthcare. :) Im sure they clean up their act by then.
I can't wait for the tax breaks on pets that is pending in congress now as my sons have left the nest. They will being paying for all this nonsense. I'm glad they are Medical Doctors. They can afford it unless the socialized medicine program congress is trying to pass limits their pay to what a McDonald's worker gets. What a country!!!
Only the most stupid can question the cash for clunnkers program!!
It doesn't make sence to destroy a perfectly good asset and call it a success. Lets give everyone a $250,000 tax credit to burn down their house and have it rebuilt that will create jobs. I am sure people who can only afford used cars don't call this a success because it raises the price of used vehicles because there are less of them.
Sales of cars dropped off dramatically after the program ended. In the long run, the auto industry is still having a very bad year. So I don't know how it can be considered a success. Just a lot of red tape for the dealers.
This administration is full of a bunch of liars. I just read an article put out by the AP about how they lied about how many jobs were created by the stimulus. That's to bad for the AP because now they too will no longer be an news organization.
Not just a boost for the auto industry but also got some gas guzzlers off the road.
Reducing the dependence on foreign fuel.
No to Cash for Clunkers with more foriegn cars than American cars were bought the rules need to be enforced better and changed to American cars only. Also as was proven all the last giveaway all it did was have people buy cars early. Stop the giveaways and bailouts four all. Also stop the tax break for home buyers with kids, illegal immigrants,and ineligable IRS workers getting tax credits needs to be enforced or stopped. If the government cannot stop the fraud in these programs does America really believe the government can stop fraud in Medicaid and Medicare?
Cash for Clunkers was a complete bust and it has cost the taxpayers enormously per car!
Leave it to those nasty, wicked Republican supporters to find away to smear good things done by the Democratic Party. ;-)
Sorry liar in chief, they are right.
First you and your minions underestimated the program and mishandled it and if you did some truth telling since the program ended car sales have PLUMMETED again and those "fake sales figures" are what lead to the GDP growth this quarter (most of it).
You basically took sales from months down the road and compressed them into one month, the only way to save the industry is to change the MODEL, not bribe customers.
Underestimated the unemployment rates as well and also the amount of flu vaccines, and the stimulus bill, Barry, have you gotten anything right?
You lied about the jobs saved as well and BEST estimates have it at $70, 000 for EACH job supposedly saved?????????????
Good payback people?
And you sheep want them or trust them with MY healthcare and MY childrens money in the future?
Not a uh, uh, uh chance.