Cash-for-clunkers program keeps rolling

• Source: xinhua
• [08:38 August 10 2009]
• Comments

He criticized the program for increasing debt in an unfair effort to subsidize the car industry over other small deserving businesses.

Despite the popularity and initial success of the cash-for-clunkers program, some experts have also voiced concerns.

Russo pointed out that the money allocated to the program will run out very quickly. He said although the cash-for-clunkers program has given the US auto industry a much-needed boost, the sales increases might not last long after the program ends.

In addition, "dealers have complained that the program was very cumbersome and bureaucratic," Russo told Xinhua. "The process for determining (the) rebate level and applying for reimbursements from the government is very difficult. In comparison, China's method of lowering the consumption tax rate was very simple to implement."

Bob Confer, an opinion columnist for the Niagara Gazette, pointed out that cash-for-clunkers will create a temporary bubble very similar to the housing bubble, the bursting of which helped spawn the current economic recession.