After much positioning and worry, Congress has passed legislation that pours another $2 billion dollars into what President Obama is calling the most successful stimulus project to date. The “cash for clunkers” program lures people to trade in their older vehicles for new, energy efficient ones by offering them up to $4500 in federal subsidies.

The ten-day run of the original cash for clunkers program increased much-needed sales for the auto industry, which has been beleaguered by the current economic recession. Of course, skeptics of the program believe that the fix is temporary, and after the funding peters out in September, Labor Day to be exact, car dealers will find themselves in an even larger hole than they were in to begin with.

The major concern for most Americans is where is the money coming from? Once again, the answer to age-old question of how to stimulate the economy rests with the taxpayers. The funding for both the original program and the extension comes from the taxpayers, who have seen more than their fair share of government excess when it comes to stimulus projects. This has been no more apparent than with the bank bail out program. Yet, since the cash for clunkers program is aimed at assisting the taxpayer, is it a bad thing? Probably not for the hundreds of thousands of Americans who were ready to purchase a new car, but for those of us who are already struggling, the impending tax increases to over the cost of all these programs will make it even tougher.

All in all, the cash for clunkers program extension means that more people will have an opportunity to purchase a new vehicle by providing additional cash to drive down the price. If you are in the market, now is a good time to buy.

Related Articles of Interest:

1. Is Cash for Clunkers Right for You? Do you have an older model vehicle and in the market for a new fuel efficient model? Is your car on its last legs, and...
2. Cash for Clunkers Ends Monday The highly successful “Cash for Clunkers” program will end Monday, according to Transportation Secretary Ray LaHood. Part of the overall stimulus package, this program offered...
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