Wow — what a beautiful thing! Ford Motor Company announced yesterday that in July, for the first time in 2 years, new vehicle sales have increased!
Something positive is happening in our economy slowly but surely. It seems that those stubborn dark economic clouds lingering over the nation are beginning to clear. Homes sales have increased, the stock markets are up and now American car sales are up. Yeah!
Is it OK for me to whisper the word trifecta? As in the three main areas of our economy are slowly grinding their way UPWARDS!
The Cash for Clunkers program has been an astounding success. Addressing two of the big three items topping President Obama’s current agenda — the economy, the environment and healthcare. The Cash for Clunkers program has allowed consumers with oversized gas-guzzling vehicles to trade them in for newer, more fuel-efficient vehicles, at a reduced cost.
The consumer wins by driving away in a car that costs them less to purchase and less to own and operate.
The environment wins because of the increased fuel economy (an estimated 10 mpg saved per trade-in) and decreased emissions inevitably given off by the ‘clunkers’.
The automakers win by getting a tremendous boost to their sales and profits. Interpretation — mo’ money, mo’ money, mo’ money!
It’s a good day in America when our biggest manufacturing industry does well.
For the skeptics, the real questions are:
1. Has the United States of America’s economy benefited from the Cash for Clunkers program?
2. If additional funding passes will it continue to benefit the economy?
3. Will this additional funding help consumer confidence and help to jump start spending again?
The answers are, in no particular order, yes, yes and yes!
Most economists agree that people spending money is what reverses a recession. It’s not complicated, people have to start spending. When people start spending demand for goods and services increase and people get hired and then those hired spend more and because they are spending more demand for goods and services increase and so the cycle continue and then we see a boost in GDP.
When the GDP increases some inflation usually follows BUT that means that our economy is seriously improving and higher inflation equates economically to lower unemployment.
When Ford Motor Company and other American car companies sell more vehicles, they demand more goods from suppliers – not just auto part suppliers, but paper suppliers and ink suppliers and cafeteria-food suppliers and hand-soap suppliers and transportation providers, and the goods and services from thousands of other suppliers. In turn, those companies demand more from their suppliers and the economy heats up.
Right now, thanks to President Obama’s Cash for Clunker Program our economy has enjoyed a week-long window of collective restored consumer confidence – even stock sales are on the rise! Nice!!!
Cash for Clunkers has done in one week what what the top economic strategists and hundreds of lawmakers and thousands of experts and billions of dollars have not yet been able to pull off in ten months – it got the economy rolling again!
So now the program needs two billion additional dollars – give it to them!
Instead of shouting HALLELUIAH that our economy is seeing some light, several Republican politicians have sneered, scoffed and scorned the program. I honestly believe that the ONLY reason they are trying to knock the program is because they can see its success and they do not want to see President Obama and the democrats do anything that is beneficial to you and me (Americans in general) because it will affect the number of Republicans who get re-elected in 2010. It is that plain and simple folks; the Republicans prefer to see the democratic programs fail just so that they (the Repubs) can benefit politically.
This is an extremely selfish way that the Repubs choose to operate and I don’t like it one bit. I want to see the Democrats programs succeed so that you and me — all of us — can all succeed.
I hope that our elected politicians have the collective common sense to agree that the Cash for Clunkers program continue.
It is important that YOU contact YOUR Senators and Congresspersons and let them know that this program is important to all of us and America’s economic health.
This is our country and we the people must stand up for what’s right for us individually and collectively and we must let our politicians know that they work for us and we expect them to do what is best for we the people otherwise we will vote them out of office.
Go to http://www.usa.gov/Contact/Elected.shtml and search for your senators by name, state, or congressional class and visit their websites.
Call both your Senators and your Congresspersons and let them know that you want the Cash for Clunkers Program to continue.