Cash for Clunkers

The proposed "Cash for Clunkers" plan I think is both good and bad. I believe that the plan addresses more of a cleaner earth and less oil dependency objective rather than helping out the auto industry. I think the administration is capitalizing on the current economic conditions to pass a law that they other wise would have never been able to pass. The fact that the car dealerships are hurting allows the law to have a chance to pass more easily. If I am not mistaken, I believe that it has only passed the house and the law is not in full affect yet.

I think this is a good thing because it gives people incentives to purchase more fuel efficient cars which in the long run could be good for us by decreasing oil dependency as well as pollution.

However I think that the proposed plan is a little misleading in that people think that the reason the plan is going through is to help GM. Well it is not just for GM according to USA Today. Click here for a complete set of questions and answers about the plan.

My view is that the government is doing a good job and sincerely trying to get things back into order. Again this is just my view. I question this one though because I do not think its what we need right now in the present. Every time someone takes advantage of the cash for clunkers deal the government is dishing out $3,500 to the dealer and sometimes under some circumstances $4,500.

I personally would rather see that money directly used to create jobs now. The plan will create jobs, but they may be in other countries. The plan is open to all brands of cars that are sold in the U.S. under $45,000. This includes GM's biggest competitors Honda and Toyota.

After all, you could want to buy a car all you want, but if you do not have a job and can not pay for it, it is pointless. Obama himself told Bloomberg that he himself sees unemployment getting to 10%. This unemployment number is not good news.

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