EDITORIAL: Benefits of Cash for Clunkers questionable
August 23, 2009
You may have noticed that Cash for Clunkers is done.
Um… again.
The program aimed at jumpstarting – pun unintented – the American auto industry has been a phenomenal success. Or catastrophic failure, depending on whom you ask.
When all the top ten trade-in vehicles come from American automakers and eight of the top ten sellers come from foreign automakers, that could easily be seen as a bad sign for Detroit, the American auto-destination.
On the other hand, part of the Cash for Clunkers program was to improve environmental standards. Designated “clunkers” were the vehicles which generally received 18 or fewer miles per gallon fuel efficiency. Those who upgraded significantly received a bonus thousand in government rebates, encouraging consumers to check the MPG before almost anything else.
It could be theorized that because of this, Americans will be paying less – both literally and metaphorically – in the long run.
Both sides have these merits, among others. It’s hard to definitively declare the program a success or failure.
Has it improved and solidified our “green” movement and boosted the economy? Dealerships across the country are all saying the same thing, after all. By the end of Cash for Clunkers, it was getting hard to keep up with demand.
Or has the program been a blunder, with many rebates still not in the hands of needy dealerships and a grim future forecast for the upcoming months’ sales? And of course, there’s also those perfectly drivable machines that have been put to the proverbial guillotine in the name of trading up.
This last point brings up a concern we on the Editorial Board have. It’s one attuned to the average college student: Where are we to get cars now?
High school and college students are infamous for their secondhand rides. Or thirdhand, or fourth, or fifth…
Now that these automobiles have been scrapped – in accordance with the Cash for Clunkers program – where are our cars going to come from?
Many of us are living on our own for the first time, and a car to call your own – though perhaps in name only – can be a huge source and symbol of independence, not to mention the practical applications it can hold.
Imagine a scarce job market in Ames. Difficult, we know.
Now imagine that a job available in the nearby city of Des Moines is ready and willing to hire you.
But you’ve no car for travel.
Commuting, moving, even the simple act of having a social life: all nice things to be able to do, and all things that become far more complicated without a car.
Was Cash for Clunkers a good program?
We’re not sure, but we’re pretty sure we’ll be holding onto our clunkers, thank you.