Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
August 27, 2014

Abstract of the Week

Ted Gayer and Emily Parker have a new paper for the the Brookings Institution evaluating the effectiveness of the “cash for clunkers” program that tried to boost the economy during the Great Recession.

“The Car Allowance Rebate System (CARS) or “cash for clunkers” program, launched during the height of the recession with the intention of stimulating the economy, creating jobs, and reducing emissions, was actually far more expensive per job created than alternative fiscal stimulus programs. Ted Gayer and Emily Parker have performed a wide-spread evaluation of the various aspects of the program, from numbers of vehicles traded-in to impact on GDP, cost per job, environmental impact and the types of consumers who took advantage of the program.”

  • Buford2k11

    One of the un-intended consequences is the recycling of parts…as the poor and unemployed struggle to be mobile, the disappearance of affordable used cars and the ability to recycle used parts made that much more difficult…I have to use, used parts to keep my paid for vehicle running and safe…but after the “crushing” loss of used parts, it is more expensive, and hard to find some of these items…the folks who do sell used parts are usually gouging and selling ugly stuff…not everyone has made the “American Dream” a reality…I wasn’t born a Romney…

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