Cash for Clunker Sequel: Dump the Pump

Given the success of "Cash for Clunkers," the government will introduce a sequel that one observer called "Dollars for Dishwashers". That's not really the name, but it's better than "Clunkers, Part Deux".

It's reported that Uncle Sam will fund a $300 million program via the stimulus plan that will allow you to swap energy-sucking appliances for new ones that carry that "Energy Star" seal of approval. If car dealers thought that getting paid was hard, the sequel plans to allow each state to get in on the act. In other words, while in NY, your air conditioner might fetch a $200 rebate, in Wyoming, it may only get you $150. The Department of Energy wants to focus on ten categories of appliances, but states could petition for an expansion of that list. The rebates are likely to be $50-$200 per appliance.

After hearing about this and then the Toys-R-Us "Cash for Kiddie Clunkers," I started to feel left out. How about a program for women who need new, more efficient shoes for the fall season?

Under the "Dump the Pump" program, we'll trade in our beat up, bull market Manolo Blahniks for more sensible, recession-style flats. For every pair of shoes that we trade, I'm thinking we should get a $50 rebate. The struggling retailers will love it and we would be helping to reduce the cost of podiatry care. It's just a thought...

Image by Flickr User Scalleja, CC 2.0

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Comments

[jekyll]

Cash for Clunkers a success? LOL!! Destroying cars that are fully paid off in order to subsidize people to go further into debt is outright shameful. Our government overlords are clueless! And the media is clueless as well for promoting this nonsense!

[progressivestance84]

I've seen some of those cars that are "fully paid off" on the highway. The point of Cash for Clunkers was to stimulate car sales. Nearly 700,000 cars were sold during the program.

http://www.rgj.com/article/20090828/BIZ/908270349/1071

Sales were so good that some dealers began to run out of cars

http://www.foxnews.com/story/0,2933,537071,00.html

It sounds like its time to trade in your Geo Metro.

[jekyll]

LOL!!! Stimulate the economy? Yep...subisidizing people to go into further debt. Great idea. All this program did was take away car sales from the future.

[WorkingClass]

I know a Korean guy who is promoting a program he calls "DRINKS FOR CHINKS".

[desertman]

All these stimulus programs - notably 'Cash for Clunkers' - have merely made things worse by drawing forward future spending and adding to US total debt while not creating any real economic progress.

[codergirl]

in total agreement. mantra to the consumer: spend, spend, spend. it will only end badly.

[Jill Schlesinger - Huffpost Blogger]

I'm more optimistic that consumers have learned painful lessons. Hopefully the new trend of savings (last month the savings rate was 4.2% from negative reading just a few years ago) will continue...

[progressivestance84]

If your so worried about the budget lets get out of Iraqi and Afghanistan, we'd save billions a month!

[Jill Schlesinger - Huffpost Blogger]

desertman--Most short term stimulus plans do just as you say: they intend to get consumers or businesses to spend future dollars now. The theory is that the economy needs the bump today, not in a year. In fact, of the $787B stimulus plan, I would have preferred to see more spent in the short term...

[CyCarConsulting]

If all the pumps and heels are turned in, that could effect the prostitution business, which still seems to be thriving. It would effect local economies, by losing affluent business men to other neighborhoods, and interests, for coffee, cigarettes, condoms, strip clubs, oh, and flowers etc. At least with cars it helped the economy. What you are proposing could drive us to a depression. Let's be careful.

[Jill Schlesinger - Huffpost Blogger]

CyCarConsulting: I didn't think fully consider the ramificati­ons--thank­s for pointing this out!