Thursday, August 6, 2009

Coulde cash for clunkers= a crash for car sales?

First, I would like to say that I agree with the government. I think that cash for clunkers is one of the best ideas that our government has come up with during this economic debacle. On the other hand, I do feel uneasy with the government directing this support to one industry. For those who disagree with CFC(Cash for Clunkers) I do agree that this legislation will eventually lead to a slump in auto sales once it ends sometime in the future. Also, I dont necessarily agree with the government directing capital flows, which should be done by the free markets. It is sad that CFC has been the best program because the government has wasted much of the stimulus on government excess. I have no problem with infrastructure spending, but giving money to ridiculous pork barrel spending is in the long run going to harm to this nation. I would like to see the government allocate larger amounts of the stimulus towards tax cuts which can give this economy a jump start. With any temporary tax relief there is always going to be a fall off. Tax cuts of this degree are ment to stimulate short term demand. Who know maybe the recent increase in auto sales will allow American auto companies and American auto workers to get on their feet again. Overall I approve!

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