July 30, 2009

ANOTHER MIS-STEP ON THE RECOVERY PLAN: AP sources: Govt to suspend ‘cash for clunkers’.

Congressional officials say the government plans to suspend the popular “cash for clunkers” program amid concerns it could quickly use up the $1 billion in rebates for new car purchases.

The Transportation Department called congressional offices late Thursday to alert them to the decision to halt the program, which offered owners of old cars and trucks $3,500 or $4,500 toward a new, more fuel-efficient vehicle.

Hmm. So the program ran through the money faster than they thought. I wonder how their healthcare plan will work out? . . .

Remember, people respond to economic incentives.