Cash for Refrigerators: Appliance Trade-Ins Are The Latest Stimulus Idea

BusinessWeek:

A $300 million cash-for-clunkers-type federal program to boost sales of energy-efficient home appliances provides a glimmer of hope for beleaguered makers of washing machines and dishwashers, but it's probably not enough to lift companies such as Whirlpool (WHR) and Electrolux out of the worst down cycle in the sector's history.

Read the whole story: BusinessWeek

Comments

[RobtBrock]

Hey! Retail clothing needs some help - how about Cash For Codpieces?

[ibsteve2u]

Check out what the righties are spreading regarding the "Cash for Clunkers" program at http://market-ticker.org/archives/1371-Government-And-Car-Dealers-Hose-You-Again.html

[bq]
But many of those cashing in on the clunkers program are surprised when they get to the treasurer's office windows. That's because the government's rebate of up to $4500 dollars for every clunker is taxable.
[eq]

Truth, or fiction? Be fun to slap it down if it is the latter...I note that TurboTax (http://turbotax.intuit.com/tax-tools/tax-tips/tax-planning-and-checklists/7127.html) sez:

[bq]
Owners who trade in gas guzzlers at participating auto dealers get a credit of up to $4,500, free of federal income taxes.
[eq]

I betcha the right will say something about this proposed program being taxable income, too....

[RightWingMarine]

let's do a thought experiment. Let's say I have $100 in my pocket and you rob me. You go out and spend my $100, is the economy any better off? The answer is no because regardless of if I spend it or if you spend it there is still only $100 being spent. Cash for ___ works the same way. Govt takes money from everyone and gives it to some of us but even under the best of circumstances still only the same amount of money gets spent.

[pltmcs]

Nice straw man, but not an accurate depiction of the stimulus. The goal of the stimulus is to get those people who might buy, but who are holding back, to buy now. Giving a little incentive will help get some people to buy now, create jobs, take idle workers off unemployment, reduce energy consumption, improve the economy (a little), etc.

If you example was to borrow $1 from every American so 3 to 6 million Americans buy an energy efficient, and hopefully American made, appliances okay. Because this leads to several thousand of you countrymen and women getting jobs.

As discussed at www.ProudlyMadeInAmerica.com points out, one manufacturing job adds up to 5 additional jobs to the economy. This is more then any other job sector.

[RightWingMarine]

sorry, still doesn't pass the smell test. A dollar taken away from me cannot be spent by me and the dollar I don't spend doesn't get to employ someone in the industry I would have supported.

[Icantbelieveher]

With all the money that Bush spent that did not end up in our economy, I have to laugh at the people complaining about incentives given to people to start spending in order to create demand and in return, jobs! The economy is a mess not because of anything that President Obama has done!

http://www.commondreams.org/views04/1022-26.htm

This is a good article written in 2004 warning about huge deficits and a destroyed economy. Now that it's here, the republicans want to blame it on President Obama!

[smokeystover39]

I'll tell ya how "F-ing" stupid this is: you won't have to trade in your old clunker appliances. So-o-o where will a huge number of the inefficient clunker freezers and refrigerators go? Out to the garage as a spare resource. Most folks won't purchase both a freezer AND refrigerator so it's logical to presume that the garage is where we will find at least one of them after the program is over.

Is there a better way to stimulate the appliance market? Our utility company pays $30.00 each for up to two freezers or refrigerators as long as they are at least 10 cubic foot capacity AND the utility has a contractor haul the old units away. Because you don't want the inefficient units still operating change the incentive(s) to apply through the local utility company, but instead of $30.00 (as in our area) make the incentive $125.00 each. The utility assures that the money is paid out ONLY when their vendor documents the actual pick up. But wait! What if someone only wants to just get rid of the inefficient freezer in the garage, but can't afford a brand new replacement??? Give 'em the same deal because removing these beaters off the grid is the same as expanding generating capacity and that's a good thing plus the $125.00 will be spent = economy boost. Think about it.

[obamaelection]

obama reappoints Bernanke 'beagle boy' Ben

yay another example of no change. voters were deceived.

good articles 4 slow news day: http://www.iamned.com

guess who will be sitting home on November 21st 2012?

[psssstyeahyou]

id really like to see a cash for solar panels project. this would provide incentive for folks willing to do the right thing and park panels all over the roof. it would support us biz. it would also advance the need for solar innovation and streamlining of the process in putting a (cheaper,b­etter,simp­ler) home system together. unlike the other 'cash for' programs this would not mean the redundancy of perfectly good systems already in place, trashed only so that newer and shinier can be purchased cheaply, as the mass of men currently lead lives of quiet dependency apon a tired grid. how soon can we expect this to be implemented?

[Icantbelieveher]

http://www.builditsolar.com/References/energyincentivesrs.htm

There's information on state rebates as well!

This is a summary of the Federal Tax Credits for Energy Efficiency from the Energy Star site with the effect of the just passed (Feb 2009) changes included in the stimulus bill.

These changes include tax credits for more energy efficiency, solar, and wind projects, as well as higher dollar limits on some items.
There is also a $2000 credit for new homes that meet some energy efficiency requirements.

[AKJM]

How about "Cash for Anything Made in America."

[AKJM]

psby an American company

[progressivegreg]

Do NOT buy Electrolux! You will not be supporting any American workers, they closed up and pulled out of Greenville, Michigan literally decimating that lovely town! The money goes to Sweden, how is that helping anyone in the United States? They are cold and brutal! DO NOT BUY ANY ELECTROLUX PRODUCTS!

[Reality Czech]

not to worry....you'll lose your savings on the applicane when cap and trade raises your utility bills next year

[texaz3step]

Is that Bill Clinton looking for Monica?

[jimme]

No, that was you looking for a life.

[texaz3step]

I have a life Wee Weed. lol

[robin50]

You will never get me to believe that getting rid of perfectly good working appliances for new ones is what could be called "green" no matter how efficient they are. The old appliance usually ends up in a landfill and the manufacturing of the new appliance is usually anything but green.

This whole cash thing is really starting to piss me off. It is rewarding people for bad behavior. I was not eligible for the cash for clunkers. The car I drive gets 36 mpg. It rewarded people who drive gas hogs that got us in this damn mess to strart with.

[YewNeekId]

Obama spends our money like a gangst with a pocketfull of stolen credit cards. Now c'ommunist china owns us.

What's next? Cash for used condoms?

[jimme]

China already own us from bush's war debt which was never put on the books until now.

[lastpost]

What next? Cash for misconceptions.

Trade in your old understanding and try out a new notion for free.

[marijam]

Do we even manufacture refrigerators inside the U.S. any longer? Who would this program actually help?

[WAY2MCCOOL]

Well, cash for clunkers mainly enriched Japan as Toyotas were the number one seller for the trade-in, which mind you was just a new scheme to get Americans deeper into debt. "Come trade in your car and finance the purchase of a new one, don;t worry will give you a few thousand bucks off, and you can get deeper in debt while you're losing your job!". They really want Americans bled. What's the plan here? Brilliant.