A big "Thank you" to the White House blog team for a witty and perceptive account of Cash for Clunkers' real contribution to our economic recovery.
You don't have to look too far beyond Edmunds to find loads of support for a positive analysis of this successful program:
- Ford Motor Co. estimates 30-40% of Cash for Clunkers sales were truly incremental--an increase of 210,000 to 280,000 vehicles, or twice what Edmunds asserts).
- Moody's Investors Service estimated 60% of sales were incremental or about 420,000 extra vehicles.
- Mike Jackson, CEO of AutoNation, told the Detroit News': "Simply put, they [Edmunds] have misrepresented the facts, and the White House is completely justified in calling them out on it. Edmunds' political views have tainted their usual rigorous approach to research. We believe that the incremental sales are over 500,000 new vehicles."
But, let's also not forget about the larger goal of the Cash for Clunkers program: to jump-start this economy. By that measure, the 1.7% of our 3.5% growth this past quarter attributable to the automobile industry reveals that this program has done exactly what was intended.