The "Crash" For Clunkers Program That Is Yet To Come

Once the "Cash for Clunkers" program is all over, the auto companies and the auto dealers may find the next few months of sales down to a virtual snail's pace; even slower than it was before the program. That's because the "cash for clunkers" program may have actually "forced" many of the recent car buyers to buy now; instead of in the months to come. In effect, stealing sales from the future.

I'm not completely sure but, the program may actually cause future layoffs in the auto industry if sales fall off significantly over the next few months. You can't artificially mess with the economy this way without any unintended circumstances. What our "wise" Congress may have actually done is create higher unemployment in the future by doing something that they erroneously thought would actually create jobs. But, let's be real about the "clunkers" program. It really wasn't intended to save jobs. It was fully intended as a "green" program to reduce carbon dioxide. But, like all their plans for the "greening" America, such as the Cap And Trade bill, employment will ultimately suffer. Only time will tell if I'm right.