The Economic Impact of Cash-for-Clunkers
Gorup, Andrew J.
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The Consumer Assistance to Recycle and Save (CARS) program, more commonly referred to as "Cash-for-Clunkers", was created to stimulate the economy and to have more fuel-efficient cars on our nation's roadways. In the summer of 2009, in what may turn out to be the worst period of the housing/credit crisis related recession; the Federal Government appropriated a total of $2.88 billion in vendor rebates for the purchase of new fuel-efficient automobiles with the trade-in to be destroyed. The goal of my research is to examine how the Cash-for-Clunkers program impacts different groups of people, from the family buying a new car to the U.S. and Foreign automobile manufacturers. I also examine the first-level of indirect groups, such as used car buyers and the U.S. taxpayer. Finally, I describe whether or not the goals of the Cash-for- Clunkers program were met.