Cash for Clunkers

Published about 3 years ago

The government's got a new plan to boost automotive sales. They're trying to pass a year long program that will allow people to trade in cars which get less than 18 miles a gallon for cars with better mileage.

They would give $3,500 for a car that gets 4 miles better per gallon. If you do out the statistical math this adds up to using about 1 barrel of gasoline less every year. If you trade up to a car that gets 10 miles better per gallon you would receive $4,500 towards the purchase of the new vehicle.

This plan seems like a good idea. It reduces the carbon footprint of individuals along with encouraging the economy. I have a few questions:

• where's the government gonna get the money to fund such a project?
• what are they going to do with all the old clunkers once folks have turned them in?