THE VINE JULY 31, 2009
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Following up on Brad's post about cash-for-clunkers, the House took unusually quick action today and voted to transfer $2 billion to replenish the cash-strapped program. Congressional Quarterly reports that the money would come from Title 17 renewable-energy loan guarantees—a part of the federal stimulus package that has been slow in getting doled out.
The fact that this money is coming from a program meant to bolster renewable energy only exacerbates the concern that—from an environmental perspective—cash-for-clunkers has been marginally useful at best. At least some members of the Senate, however, appear hip to this fact: Diane Feinstein and Susan Collins released a statement insisting that any extension approved by the Senate must require newly purchased vehicles to achieve at least two miles per gallon greater fuel efficiency than is currently required under the program.
2 comments
Cash for Clunkers is just a temporary palliative for a dying industry. It further subsidizes our dependence on the automobile, one of the most energy-intensive and environmentally destructive toys that we have. Just as there is no such thing as clean coal, there is no such thing as a green car. The world has changed and we need to adjust to it.
- amidut
July 31, 2009 at 7:42pm
Amidut has a point here, and CFC was rolled out in a little bit of a funny fashion.
CFC Came out in the 5 selling days of the month, when traditionally the manufacturers sell most of their cars. Typically the Dealers sell 50% of their cars in the last 3-5 days of a month as Dealers and Manufacturers put their best deals on the table to motivate the fence sitters.
It really should not surprise anyone that they sold 300 k cars in 5 days, that's really not a lot of cars in a normal month. Extending it into August is more of a concern. Is August Sales looking that bleak that they need this? It will be interesting to see how the Dealers and Manufacturers calibrate at the beginning of the month.
But to Amidut's point, his is a little extreme, but we're starting to see a little pull back from cars. With the $ 4 gas last year, and the Recession this year people are wondering about the 2nd or 3rd car. You can get a lot done on the internet, and if you live in a walkable town, there are a lot of benefits. Public Transportation is lousy in most places, but at least can get you around. Video on Demand and Great Carry-out food allow more nights in. Beer with the Neighbors and no driving is becoming a little more common.
In addition, people are spnding more money on TV's. Computers and Phones. If you have a $ 100 iPhone bill do you really want a fancy car?
I think we may see a pull back from the glory days of 16 million cars per year. And a larger percentage of those cars will be small 2nd commuter cars.
Not sure if this is coming or not, but I don't see auto sales bumping up until November or December when people really need to replace their clunkers.
- CRS9TNR
August 1, 2009 at 10:21pm