Wednesday, April 7, 2010
Cash for Clunkers may not have shifted sales
The White House just released a report that argues Cash for Clunkers did not merely shift auto sales that would have occurred anyway forward a few months. The data suggests that new sales were induced through the program, which increases the environmental and economic benefits of the program. It still may not have been a perfect program, but the timing looks like it helped the auto industry and related employment. By clearing out inventory, it likely helped set the stage for the recent strong performance by automakers with new models.