Cash for clunkers continues to make headlines this week with reports of auto sales nearing pre-recession levels. With additional funding necessary to keep the program going, critics of the program are voicing concerns from both the right and left of the political spectrum.
A car turned in as a clunker sits in a recycle dumpster at
Capitol City Buick Pontiac GMC in Berlin, Vt.
(AP Photo/Toby Talbot)
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The immensely popular trade-in subsidy program was reportedly running out of money at the end of last week, though the government assured car dealers that eligible trades made at least through the weekend would be honored. Before leaving for August recess, the U.S. House of Representatives overwhelmingly passed a $2 billion extension for cash for clunkers but discussions in the Senate are ongoing.
Cash for Clunkers controversial in Washington
Cash for clunkers is not universally beloved. Conservative lawmakers bemoan the government subsidy and environmentalists are not convinced the program is a net gain for the planet either. In a strange twist, conservative opponents to the program have begun to espouse environmental arguments against it. According to the Wall Street Journal, "A Senate Republican aide said lawmakers want to see evidence that the initial funding for the program will lead to reduced vehicle emissions."
Lifecycle analysis the environmental impact of Cash for Clunkers
What has some environmentalists concerned is a concept called lifecycle analysis, an accounting of the energy inputs and environmental impacts of a product from drawing board to trash heap. Gwen Ottinger, of the Chemical Heritage Foundation's Center for Contemporary History, writes in the Washington Post:
"Building a new car, washing machine or refrigerator takes energy and resources: The manufacture of steel, aluminum and plastics are energy-intensive processes, and some of the materials used in durable goods, especially plastics, use non-renewable fossil fuels as feedstocks as well as energy sources."
Modest fuel savings from clunker replacements
According to CNW Research, the average fuel economy of vehicles traded in last week was 16.3 miles a gallon. The average replacement vehicle came with a 24.8 miles per gallon rating. Debate rages as to whether this is a victory, especially if, as some estimate, the clunkers turned in were actually third and fourth vehicles that weren't being driven very much.
Continuing Clunkers a Top Priority for Car Industry and Obama Administration
What is clear about the Cash for Clunkers program is that getting Congress to appropriate more cash for the program is a top priority of the president. Because the U.S. House of Representatives has already adjourned for recess, any adjustments made to the program by the Senate that require reconciliation with the House-passed bill means no more money for the program until September. Senators are under a great deal of pressure to continue the program as is.
What are your thoughts? Do you like cash for clunkers? Did you trade in a vehicle? Leave a comment below.
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