"Cash for Clunkers" Stimulus Plan a Boon for Auto-Makers

Believe it or not, our govt is considering a $3.5 - $4.5 billion dollar "Cash for Clunkers" stimulus "grant" that will encourage auto-owners to trade in their gas guzzling vehicles for more fuel efficient ones. Seems to me that this is nothing but a new-car sales promotion that THE AUTO INDUSTRY itself should be offering the public.
Here is just another example of our govt currying favor to special interest in the name of "public good."

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Congress Mulls Cash For Clunkers
Submitted by Dan Hendrick on Thu, 2009-05-07 16:05.
U.S. House Democrats have agreed to include a tentative deal to subsidize older vehicle trade-ins in the broader energy bill under consideration by the House Energy and Commerce Committee.

While the overall piece of legislation remains a source of debate in Washington, committee members reached common ground on incentives to encourage car owners to trade in their gas-guzzlers for newer, more fuel-efficient models.

The provision, nicknamed "cash for clunkers," would also have the benefit of increasing vehicle sales during this protracted slump. Consumers would receive a voucher applied to the purchase price of a new vehicle, with some limitations - the new car must meet a minimum miles per gallon threshold and be more fuel-efficient than the car traded in.

The estimated $3.5 to $4.5 billion to finance the proposed yearlong initiative is included in the stimulus package, and the idea has the support of President Obama.

The cash for clunkers deal is part of an attempt to drum up more Democratic support for the overall energy bill, which has been fraught with dissent over the key issues of emissions reductions, renewable energy, energy efficiency and pollution permits (no Republicans on the House Energy and Commerce Committee support the bill).

Committee Chairman Representative Henry A. Waxman (D-California) remains focused on finalizing a bill by the end of the month.
http://www.nylcv.org/ecopoliticsdaily/20090507_cash_for_clunkers_could_stimulus_bill_pay_for_more_efficien