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Economic Stimulus Setbacks

Clean the Sky - Positive Eco Trends & Breakthroughs

Cash for Clunkers Program Suspended After 6 Days

— July 31, 2009 — Autos
Just six days after its inception, the Cash for Clunkers program has been suspended by the U.S. government. The program, which is meant to stimulate the economy by offering a $3,500 or $4,500 rebate towards the purchase or lease of a newer, more fuel-efficient car, is so popular that the funds have dried up well ahead of schedule.

As of this writing, it’s rumored that lawmakers will ask the White House for more funds to continue the Cash for Clunkers program. The $1 billion allocated to Cash for Clunkers was supposed to last until November 1, but may already have run out less than a week into the program.

Despite the funding issue, Michigan Senator Carl Levin has released a statement that says that Cash for Clunkers will be good at least through Friday, according to Transportation Secretary Ray LaHood.
Trend Themes
1. Sustainable Transportation - The popularity of the Cash for Clunkers program highlights the growing demand for more fuel-efficient and environmentally sustainable transportation options.
2. Government Stimulus Programs - The suspension of the Cash for Clunkers program raises questions about the effectiveness and sustainability of government stimulus programs.
3. Consumer Behavior - The rapid depletion of funds for Cash for Clunkers shows that consumers are willing to make significant purchases when offered financial incentives.
Industry Implications
1. Automotive - The Cash for Clunkers program presents opportunities for automakers to develop and market more fuel-efficient vehicles to meet growing consumer demand.
2. Government - The suspension of the Cash for Clunkers program highlights the need for government agencies to design and implement sustainable economic stimulus programs.
3. Financial Services - The popularity of the Cash for Clunkers program presents opportunities for banks and other financial institutions to develop and market loan products tailored to consumers looking to purchase more fuel-efficient vehicles.
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