Cash for Clunkers Bill Belongs in the Junkyard
Nicolas Loris /
Both the Senate and the House of Representatives are seeking to pass “Cash for Clunkers” legislation that would have three primary objectives: increase car sales, improve the environment, and stimulate the economy. The bill would provide consumers with a voucher (up to $4,500) to purchase a new vehicle to completely scrap the old one. The Associated Press gives a good summary of the House and Senate versions.
Although the bill passed today in the House, cash for clunkers is full of problems and unintended consequences: