The Economic Crisis

[49ers]

hey the game pit is all about the stock market. amnd thanks for all the links guys

[bah]

Oh, goodie. My parents made use of the Cash for Clunkers program (http://en.wikipedia.org/wiki/Cash_for_c ... ted_States) and traded in a 1993 Toyota Previa for a $4,500 voucher to buy a 2010 Toyota Prius.

The question is, is this good government economic policy?

[49ers]

I believe that that goverment policy is a good one at the current time

[gyourkoshaven]

It's not good, but then again, I haven't approved of anything the government's done about the economy. Seriously, how is this doing anything but bankrupting the car companies?

[andrewwski]

Seriously, how is this doing anything but bankrupting the car companies?

Can't figure out your logic there. Programs like this will help the car companies. The government gives people huge rebates to get rid of their old cars and buy new ones. Thus people are more likely to buy new cars, and the car companies sell more cars.

Can't figure out how that would hurt them.

[gyourkoshaven]

Sorry, I had that one completely wrong. I thought the government was giving people new cars in return for gas guzzlers . I can see vouchers working.

[49ers]

Seriously, how is this doing anything but bankrupting the car companies?

Can't figure out your logic there. Programs like this will help the car companies. The government gives people huge rebates to get rid of their old cars and buy new ones. Thus people are more likely to buy new cars, and the car companies sell more cars.

Can't figure out how that would hurt them.

that wasn't exactly what I was thinking it was but ok
do they take of money from buying the new car for your old car trade-in

[gyourkoshaven]

No, you trade in a used car, and the government gives you a voucher (Discount, paid for by the government) for buying a used car. So in the case of Bah's parents, the government made a new car cost $4,500 dollars less than it would have for the customer, while the car company gets full pay.

[49ers]

thank you for the clarification gyourkoshaven
so where do you get these vouchers

[andrewwski]

You go buy a new car and let them scrap your old one.