Tuesday, November 25, 2008

For Your Consideration: American Automaker Bailout


Stimulus: U.S. government-issued Car Grant ($15,000)

Qualifying Recipients--U.S. citizen owner of car that is more than 10 years old, registered and running.

Program Limits--First 10 million cars

Primary Benefits
- Market-based "pull" versus bailout manufacturer "push"
- Moves stalled inventory (circulation)
- Economic stimulus for: automakers, auto dealers, localities
- Dramatic reduction in polluting emissions from older vehicles
- No blank check to weak industry management
- Not dependent on other systemic weakness: Credit Industry

Secondary Stimulus Program
- Tune and refit, emissions test, reclaimed vehicles for secondary market or scrap

Downside
- Readers?

2 comments:

Unknown said...

I think you should specify that the program is for cars from the Big 3 makers only, or whichever ones are clamoring for money to shore them up.

Unknown said...

You know, I listen to NPR a couple times a day, typically while in transit, and sometimes some talk radio during the day. I have yet to hear anything close to what you've posted here, and the sad thing is,it makes sense! Unfortunately that will mean it will never be considered, as our 'leaders' have a hard enough time tying their shoes, much less giving due consideration to a worth idea. You know, like true democracy and such.

Genuinely intriguing!

J. W. Nicklaus