Cash For Clunkers: Good For The Economy?

Much has been talk about this new goverment program to hlep our slumping auto business. Suffice to say the program is working as the first billion is gone and 2 more billion are on the way. The program is a great band-aid for our slumping carmakers in this county. The program guarantees you $3000-4500 for your old car in trade in value for a greener car. This is a cash infusion for a dying industry. Although, are the people taking advantage of this program buying greener cars or is something they do would have done it anyway?

The other question becomes how GM and Ford spend the funds raised by this program in the long-run to see if the program has any true effect. Most people are simply trading in their 2nd and 3rd old cars for newer ones so I really question how "green" the program really is. My only hope is that money is not taken away from research programs that could have long-term effects to help our environment and automobile industry. The additional $2.4 billion in electric vehicle grants will sure go a long away in greening our country and stimulating our economy announced today will help the auto industry in the long-term. I think $5.4 billion there would have been a better solution, but desperate times call for desperate measures.

Thanks to Barack for doing something to help the auto industry. Outside of software and movies, what other products are actually made here anymore. Here's to hoping this is the beginning of the renewal of a few iconic American car companies.