Cash for Clunkers Actual Cost: $24,000 per Car
By Chip Hanlon | 11/02/09
Auto industry research firm, Edmunds, says the program actually cost $24,000 per car!
In summary: the administration loves to tout the 690,000 vehicles sold in July and August, but the Edmunds report says that only 125,000 (18%) of those sales were incremental, meaning the remaining 82% of sales would have happened regardless of the program.
In other words, 565,000 people were given free money for no reason at all, just as critics of this program predicted would happen.
Phi Beta Iota: The US Government is completely lacking in any kind of strategic analytic model. They are printing cash they don’t have to cover debts they should not have incurred, and there is no sign that either the Executive or the Congress are going to be responsible about governance, or provide coherent governance, anytime soon.