Cash for Clunkers: A Lemon?

If you’re looking for more evidence that government programs that sound well-intentioned sometimes end up not working exactly as sold, look no further than the “Cash for Clunkers” program.  Heralded by some supporters as a way to give auto-makers a shot in the arm and a good way to remove older gas guzzling vehicles from the road, the program has now reached a speedbump. 

As of Wednesday, nearly 30,000 Clunker transactions had been been submitted to the National Highway Traffic Safety Administration, the agency said, requesting a total of almost $96 million in disbursements.

Apparently, government agencies aren’t the most efficient at keeping track of exactly how much money is left to dispense from the budgeted amount.  According to a CNN article, “The federal government may suspend its $1 billion Cash for Clunkers program after less than a week over concerns that the plan may have already burned through its funds”. 

The confusion isn’t limited to government accountants however.  Car dealers are a bit less than pleased with the program, and their customers are wondering what’s going on, as rules for the program are causing long waits for delivery of their new vehicles. 

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