But it can't go on forever. When the C4C money runs out for good, new car sales will hit the wall. Many people who could afford to buy new will have already done so while the "free" money was available. Those who have no job or shaky jobs will continue patching up Old Bertha.
Cash for Clunkers is a lot like Mayor Daley's "gun buy-back" program. All hat, no cattle.
If they really want stimulus, long-lasting, meaningful stimulus, make incentives to manufacture all those Chinese goods right here. Tax incentives, hiring incentives, expansion incentives. If we're working and making a decent paycheck, we'll buy some cars.
Not only that, but used car parts will go through the roof.
the govt has just thrown a monkey wrench into the whole auto industry, that will be felt in another month or two