US Senate passes Cash for Clunkers

cash-for-clunkers

US consumers will soon be able to trade in their cars that give them less than 18 miles per gallon of gas for a government gift voucher amounting to approximately US$3,500 to 4,500, as the US Senate passes a bill for the Cash for Clunkers program today.

While the program initially calls to mind government efforts to reduce gas emissions that contribute to global warming by reducing the number of automobiles that burn gas like there was no tomorrow, analysts and skeptics have suggested the notion that the program is actually an economic stimulus thrust to help struggling auto makers and related industries. A catch of the program is that the granted gift voucher cannot be used to buy a used car.

US President Barack Obama is scheduled to sign the bill into law soon, afterwhich the US Transportation Department plans on implementing the program by August this year.