In 2007, Americans bought 16 million cars. In 2008, we bought 13 million. And in 2009, we’re on track to buy just 9 million. Unless we turn the trend around fast, all the auto company bailouts and forced mergers in the world won’t save our economy.
So you’d think that Democrats would be desperate to stimulate auto sales, because as the economy goes, so go the 2010 congressional elections. If, in October 2010, the recession is still raging and the unemployment rate is in the teens, Republicans will regain the majority in the House, maybe in the Senate.
Well, Democrats are a little concerned about stimulating auto sales. Mostly, though, they are motivated to reduce carbon emissions. So Tuesday the Democratic-controlled House passed the “Cash for Clunkers” bill to reduce energy consumption and encourage car sales. Our own U.S. Rep. Don Manzullo, R-Egan, voted for it, although he says it doesn’t do nearly enough to get the factory floors humming again.
Cash for Clunkers says that if you have a car built after 1984 that gets 18 miles per gallon or less, and you trade it in for a new car that gets 22 miles per gallon or more, you get a $3,500 tax credit. If your new car gets 10 miles per gallon more than your old one, you get a $4,500 tax credit.
No, you can’t trade in that old junker up on blocks in your backyard. Your car has to be in operating condition. Does your car qualify? See this Web page: fueleconomy.gov/feg/findacar.htm.
“Don voted for the bill because it’s better than nothing, and it will create demand for about 1 million cars,” said Rich Carter, Manzullo’s spokesman. The bill would create about 60,000 jobs on assembly lines and throughout the economy.
A couple of Senate versions of the Clunkers bill are being shopped around. Some senators want to require a higher miles per gallon requirement for the tax credit and to allow some used-car purchases to qualify.
Manzullo has his own bill, which features a $5,000 voucher and no trade-in requirement. Buy a new car, get $5,000 off at the dealer. It’s that simple.
“Don’s bill would sell 15 million cars. It would cost $75 billion, but it creates 900,000 jobs on assembly lines, supply companies near the Chrysler plant and the guys in Rockford and the region who are supplying the car companies. When we put autoworkers back to work, it affects everyone,” Carter said.
