And the Dow Jones rallies 200 points.
First, Taxpayers paid $24,000 per car
This is based on taking normal sales projected before the end of 2009, and subtracting it from the number sold under Cash for Clunkers, because they would have happened anyway. You are left with $24K for each extra car sold with the help of this legislation that otherwise would not have been sold. But why such a big sacrifice?
The big aspect of our current crisis situation is an intense psychology game. These sales helped to drive the GDP growth to levels where the media whores could enthusiastically say, "YAY THE RECESSION IS OVER!!" (Take a moment to think here about why this is important.)
Anyhow here is the chart for what Cash for Clunkers actually did to sales.CHART OF THE DAY: Cash-For-Clunkers MASSIVELY Distorted GDP
Finally, here is a good article about the whole thing.GDP Is..... Better Than Expected?
- Quote :
- Current-dollar personal income decreased $15.5 billion (0.5 percent) in the third quarter, in contrast to an increase of $19.1 billion (0.6 percent) in the second.
Personal current taxes increased $4.8 billion in the third quarter, in contrast to a decrease of $119.1 billion in the second.