WASHINGTON (AP) -- The House of Representatives voted Friday to rush $2 billion into the popular but financially strapped "cash for clunkers" car purchase program, heeding calls from U.S. consumers who hope to keep taking advantage of the trade-in incentives.
Called the Car Allowance Rebate System, or CARS, the program is designed to help the economy and the environment by spurring new car sales. Car owners can receive federal subsidies of up to $4,500 for trading in their old cars for new ones that achieve significantly higher gas mileage.
It sounds like a neat idea. We give someone $4,500 to buy a car to keep the company producing so that the people who are kept at work pay $4,500 to someone else.....Does it sound like a Ponzi scheme, or am I wrong? How can this program help the economy?
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