- The latest autopsy of the program was done by three economists from MIT and Texas A&M University.
- They found that there essentially were no incremental sales during the program (failure number 1).
- All the program did was give away money to people that would have bought a car anyway during the Cash For Clunkers timeframe or gave money away to people who moved up or delayed their purchase in order to get the free incentive money during the program’s timeframe.
- From a car company perspective, the condition that the cars purchased be of higher mileage type resulted in people buying less expensive cars than they normally would have purchased which depressed the per car average revenue and profit of each Clunkers purchase.
- Thus a program that was intended to increase car maker sales and profits did the exact opposite: it depresses car maker sales and profits (failure number 2).
- The summary of the study kind of sums up the results of the program: “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."
- When the state of Alabama required able bodied adults to either find a job or get into a work training program the number of people in the state’s SNAP program dropped an amazing 85%, from 5,538 to just 831 in four short months, indicating that about 4,700 Alabama residents were soaking the program and taxpayer for free SNAP food benefits.
- When several Georgia counties did the same thing, they saw a 58% drop in SNAP enrollment.
- The Atlanta Journal Constitution newspaper reported that when another 21 Georgia counties joined in they saw a 62% drop in SNAP enrollment.
- When the state of Maine reimposed the work requirement, not only did the SNAP enrollment plummet but a follow study showed that that the Maine residents who left the program actually saw their total household earnings more than double within a year, going from $3.85 million to $8.24 million, i.e. those people were no longer dependent on taxpayer handouts and their overall welfare soared as a result of finding work and getting off of food welfare.
- According to the Foundation for Government Accountability: “Kansas saw a 75 percent decline after implementing work requirements in 2013. In addition, nearly 60 percent of former beneficiaries found employment within 12 months and their incomes rose by an average of 127 percent per year.”
More insanity tomorrow.
It is also available online at Amazon and Barnes and Noble. Please pass our message of freedom onward. Let your friends and family know about our websites and blogs, ask your library to carry the book, and respect freedom for both yourselves and others everyday.
Please visit the following sites for freedom:
Term Limits Now: http://www.howmuchworsecoulditget.com