Put on your surprised faces!!!
Obama's 2009 "Cash for Clunkers" Program actually hurt new car sales when it was intended to promote new car sales.
//The Impact of Cash for Clunkers
Three economists (from MIT and Tex A&M) have crunched the numbers and discovered that Obama’s Cash-for-Clunkers scheme back in 2009 was a failure even by Keynesian standards.
The abstract of the study tells you everything you need to know.
The 2009 Cash for Clunkers program aimed to stimulate consumer spending in the new automobile industry, which was experiencing disproportionate reductions in demand and employment during the Great Recession. Exploiting program eligibility criteria in a regression discontinuity design, we show nearly 60 percent of the subsidies went to households who would have purchased during the two-month program anyway; the rest accelerated sales by no more than eight months. Moreover, the program’s fuel efficiency restrictions shifted purchases toward vehicles that cost on average $5,000 less. On net, Cash for Clunkers significantly reduced total new vehicle spending over the ten month period.
This is remarkable. At the time, the most obvious criticism of the scheme was that it would simply alter the timing of purchases.
And scholars the following year confirmed that the program didn’t have any long-run impact.//
Yay, Government intervention in the economy!!!
Showing posts with label Obama - Economics. Show all posts
Showing posts with label Obama - Economics. Show all posts
Sunday, July 09, 2017
Wednesday, December 07, 2016
The nice thing about having a Democrat in the White House is that there is never any bad news...
...but now the media has to go back to work.
It turns out that there is bad economic news after all.
//Now they tell us.
A new report on the economy finds that productivity growth is at a 50-year low and that much of the positive talk about the nation's financial situation in the last election, much of it coming from the administration, was a lie.
The report from the U.S. Council on Competitiveness and Gallup finds that for many, the economy is in reverse despite claims that there is an active recovery ongoing, complete with new jobs.//
I blame George Bush.
...but now the media has to go back to work.
It turns out that there is bad economic news after all.
//Now they tell us.
A new report on the economy finds that productivity growth is at a 50-year low and that much of the positive talk about the nation's financial situation in the last election, much of it coming from the administration, was a lie.
The report from the U.S. Council on Competitiveness and Gallup finds that for many, the economy is in reverse despite claims that there is an active recovery ongoing, complete with new jobs.//
I blame George Bush.
Subscribe to:
Posts (Atom)
Posts
