DeMint: Even If Cash For Clunkers Helps The Economy, ‘It’s Still A Horrible Policy’
DeMint: Even If Cash For Clunkers Helps The Economy, ‘It’s Still A Horrible Policy’
Today, the Senate is planning to vote on infusing another $2 billion into the “cash for clunkers” program, after the program proved more popular than expected and went through its initial $1 billion in funding in just six days. However, the popularity of the program — and its positive economic and environmental benefits — has not swayed some Republicans from treating it “like swine flu with a steering wheel.”
Foremost among these has been Sen. Jim DeMint (R-SC), who appeared on CNBC this morning to deride the “centrally planned economic scheme we’re working on here.” And even when presented with the argument that cash for clunkers will successfully provide economic stimulus along with environmental benefits — which is exactly the point — DeMint retorted “it’s still a horrible policy.” Watch it:
Here are some of the things that DeMint evidently finds “horrible.” According to analysts at Action Economics, the boost in consumption thanks to cash for clunkers will cause “third quarter GDP to grow 1.8% rather than his previous forecast of 1%.” Thanks in part to the program, auto sales in July rose to an annualized pace of 11.3 million units, the highest since September 2008. And as the Associated Press reported, “if the Senate approves the additional money, it’s likely to lead automakers to increase production and bring back laid-off workers.”
And then there are the environmental benefits. The Department of Transportation reported that “the average fuel efficiency of old cars traded in via the program is 15.8 miles per gallon, while new cars had an average MPG of 25.4.” As the Economic Policy Institute found:
On average, total gas consumption will drop by 87 million gallons per year, and American consumers will use 22.2 million fewer barrels of foreign crude oil. The environmental impact of reduced gas consumption is considerable as well. We estimate that the program will result in about 850,000 fewer tons of CO2 emissions per year (3.4 tons per vehicle annually).
This program is definitely not the most efficient way to stimulate the economy or reduce emissions, if either was the program’s sole purpose. But cash for clunkers is worthwhile because it does both, which DeMint clearly finds objectionable.
4 Responses to “DeMint: Even If Cash For Clunkers Helps The Economy, ‘It’s Still A Horrible Policy’”
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C Streeter DeMint is part of the “new chosen.” Normal rules don’t apply.
The non-chosen have to buy their own damned cars.
http://www.salon.com/news/feature/2009/07/21/c_street/
August 6th, 2009 at 4:23 pmi doubt this program will really do much for the environment; those new cars dont just drop out of the sky, fully assembled…and those new cars are produced in plants that are the largest consumers of coal generated electricity in the region; & dont forget the amount of carbon necessary to make all those parts, transport the parts to the plant, and transport all those workers to the plant to assemble them using machines which also took carbon to make and which use a lot of carbon while operating…its got the odor of corn based ethanol produced by our energy dependent agriculture…
August 9th, 2009 at 2:58 pmWhat a freaking nutjob!!!!
August 9th, 2009 at 8:57 pmWhy does anyone listen to the republicans? During their rein they have put America into the toilet! Not one of them has anything intelligent to say, so why do they dominate the airwaves? How could anyone with a functioning brain listen to the likes of Limburger or Beck? Fox news is a joke. A bad one at that. It ought to be illegal for those who report the news, to go out and manufacture it. But given our “justice” system there wouldn’t be any punishment anyway. The cavalier attitude of republicans and the total manipulation of news by the media are tell-tale signs of the dire situation the public is faced with. A secret government being run by the rich for the rich. Whether you realize it or not there is nothing you can do about it. Obama I’m afraid, is just an illusion, bought and paid for by your friends, the religious right.
August 13th, 2009 at 6:03 am