Author Topic: Cash for clunkers results: $1.4 million per job created  (Read 775 times)

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Offline rangerrebew

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Cash for clunkers results: $1.4 million per job created
« on: November 01, 2013, 05:23:03 AM »
Cash for Clunkers: An Evaluation of the Car Allowance Rebate System

By: Ted Gayer and Emily Parker



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. Among other conclusions, they found that:


Additional Resources
Vehicle sales
Infographic 

Cash for Clunkers: An Evaluation

October 30, 2013

 
The $2.85 billion program provided a short-term boost in vehicle sales, but the small increase in employment came at a far higher implied cost per job created ($1.4 million) than other fiscal stimulus programs, such as increasing unemployment aid, reducing employers’ and employees' payroll taxes, or allowing the expensing of investment costs.


Total emissions reduction was not substantial because only about half a percent of all vehicles in the United States were the new, more energy-efficient CARS vehicles.


The program resulted in a small gasoline reduction equivalent only to about 2 to 8 days’ worth of current usage.


In terms of distributional effects, compared to households that purchased a new or used vehicle in 2009 without a voucher, CARS program participants had a higher before-tax income, were older, more likely to be white, more likely to own a home, and more likely to have a high-school and a college degree.

http://www.brookings.edu/research/papers/2013/10/cash-for-clunkers-evaluation-gayer
« Last Edit: November 01, 2013, 05:23:52 AM by rangerrebew »
Abraham Lincoln:

There is no grievance that is a fit object of redress by mob law.
--January 27, 1838 Lyceum Address

Don't interfere with anything in the Constitution. That must be maintained, for it is the only safeguard of our liberties. And not to Democrats alone do I make this appeal, but to all who love these
great and true principles.
--August 27, 1856 Speech at Kalamazoo, Michigan

Let us then turn this government back into the channel in which the framers of the Constitution originally placed it.
--July 10, 1858 Speech at Chicago

Offline alicewonders

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Re: Cash for clunkers results: $1.4 million per job created
« Reply #1 on: November 01, 2013, 07:44:44 AM »
Cash for Clunkers was one of the stupidest ideas I've ever heard.  I guess they thought people would line up to buy Volts.  Just like they thought people would line up to sign up for Obamacare. 
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Offline rangerrebew

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Re: Cash for clunkers results: $1.4 million per job created
« Reply #2 on: November 01, 2013, 07:54:07 AM »
Cash for Clunkers was one of the stupidest ideas I've ever heard.  I guess they thought people would line up to buy Volts.  Just like they thought people would line up to sign up for Obamacare.

It pales in comparison to Obamacare. :peeonobama: There is no doubting Cash for Clunkers was a test market for Obamacare, a check to see how stupid Americans can be. :wtf:
Abraham Lincoln:

There is no grievance that is a fit object of redress by mob law.
--January 27, 1838 Lyceum Address

Don't interfere with anything in the Constitution. That must be maintained, for it is the only safeguard of our liberties. And not to Democrats alone do I make this appeal, but to all who love these
great and true principles.
--August 27, 1856 Speech at Kalamazoo, Michigan

Let us then turn this government back into the channel in which the framers of the Constitution originally placed it.
--July 10, 1858 Speech at Chicago

Offline aligncare

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Re: Cash for clunkers results: $1.4 million per job created
« Reply #3 on: November 01, 2013, 08:26:40 AM »
Oops. Our DC socialist masterminds can't seem to flush other peoples money fast enough. Maybe, someday, they'll try the Constitution – you know, just for change. Now wouldn't that be a hoot.
Some #NeverTrumpers are like the pockets of Japanese who didn't know the war was over

Offline happyg

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Re: Cash for clunkers results: $1.4 million per job created
« Reply #4 on: November 01, 2013, 09:06:25 AM »
Cash for Clunkers was one of the stupidest ideas I've ever heard.  I guess they thought people would line up to buy Volts.  Just like they thought people would line up to sign up for Obamacare.

The used car market suffered because of that piece of junk!  My son and I went car hunting for my granddaughter who was starting college. The prices of used cars made my head spin.

Offline katzenjammer

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Re: Cash for clunkers results: $1.4 million per job created
« Reply #5 on: November 01, 2013, 09:06:59 AM »
I really no longer view any of these things as "failures."  To term it a failure, one would have to assume that it had some positive goal(s) or objectives at its core, that were not met.  Call me extremely jaded (go ahead, I can take it!! lol), but I believe that all of these programs are intended to "fail" as they do, taking out more Liberty, more Freedom, and chipping away at the overall economy.  No, I don't see these "people" (I use the term loosely), as incompetent bumblers that can't just seem to "get anything right!"  Every stinking law and regulation somehow serves the overall purpose of destroying the Republic...

Offline happyg

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Re: Cash for clunkers results: $1.4 million per job created
« Reply #6 on: November 01, 2013, 09:33:00 AM »
I really no longer view any of these things as "failures."  To term it a failure, one would have to assume that it had some positive goal(s) or objectives at its core, that were not met.  Call me extremely jaded (go ahead, I can take it!! lol), but I believe that all of these programs are intended to "fail" as they do, taking out more Liberty, more Freedom, and chipping away at the overall economy.  No, I don't see these "people" (I use the term loosely), as incompetent bumblers that can't just seem to "get anything right!"  Every stinking law and regulation somehow serves the overall purpose of destroying the Republic...
Unfortunately, I have to agree with you. I'm reminded of the movie, "Soylent Green", when  E.G. Robinson is watching a beautiful video of how America used to be before he was euthanized. So sad...

Offline katzenjammer

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Re: Cash for clunkers results: $1.4 million per job created
« Reply #7 on: November 01, 2013, 10:12:49 AM »
Yes.


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