Of the nearly $800 billion of stimulus funds, the $1 billion "Cash for Clunkers" program may offer the most bang for the buck in terms of jump-starting the economy.
The program comes as auto dealers' inventories are running lower, after the bankruptcy-related shutdowns at General Motors Co. and Chrysler LLC.
Car companies may need to raise production as a result, and to do that, they will have to boost their own depleted stockpiles of raw materials and parts.
The prospect has some economists scrambling to raise their forecasts for growth in the second half of the year.
Tuesday, August 4, 2009
Cash for Clunkers Trade-In Program Tunes Up Economic Engine
According to Justin Lahart's August 4, 2009 article "Trade-In Program Tunes Up Economic Engine" in the Wall Street Journal: