The Christian science monitor reports that Cash for Clunkers cost taxpayers $24,000 for each new car sold.
Well, it’s in how Edmunds crunched the numbers. A valid way to evaluate the program economically, it says, is to look at how many people purchased cars that otherwise wouldn’t have been bought. The firm says that number is about 125,000 cars. By that measure, the government spent $24,000 to generate each sale of a new car.
For comparison, the average price for a new vehicle in August 2009 was $26,915, minus an average cash rebate of $1,667.
In all, the government spent $3 billion on a program that provided cash toward 690,000 car purchases – about $4,348 per car. That makes 565,000 people who got as much as $4,500 to buy a car they would have bought anyway, according to the Edmunds analysis.
So that mean in taxes that $4,500 that you were given cost you 19,500 PLUS the tax you will pay on the $4500 as income.
Of course this is on the national credit card so you might not notice it but you or your kids will pay for it, assuming you have anything left after Obamacare et/al. Snapped shot agrees.
If you thought that was a good deal, wait until you see what these nimrods do to your healthcare plan by this time next year. I’m sure you’re going to love it.
Gateway Pundit says:
It would have been cheaper to give them away free.
Jim Jim Jim, you’re missing the whole point, this entire program was a PR buy for the Obama administration and congress. The purpose was to help facilitate their re-election and prop up their numbers.
Exit question, we know where $4500 of those dollars went, where did the other 20K or so go? Who got it, what interest group cashed in on it?
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