Not really. The money was obviously intended, first, as an incentive to buy cars. But it's also a behavioral incentive--if the governments get people to buy cars all at once, it gives the impression of the economy picking up and consumer confidence rising, etc.
Cash for Clunkers cost the government either $3500 or $4500 per car. It doesn't "not count" if people would have bought cars anyway.
ReplyDeleteNot really. The money was obviously intended, first, as an incentive to buy cars. But it's also a behavioral incentive--if the governments get people to buy cars all at once, it gives the impression of the economy picking up and consumer confidence rising, etc.
ReplyDelete