Clunk On

The U.S. government’s ongoing bailout of the American automotive industry will receive an additional $2 billion today when the U.S. Senate votes to extend its “Cash for Clunkers” program.

In typical government fashion, though, the move comes right as American taxpayers discovered that the program wasn’t really out of money – as many had been led to believe – and as demand for the rebates appears to be shrinking.

According to the latest numbers provided by the government, “Cash for Clunkers” still has $225 million available for consumers seeking to take advantage of these “rebates” to apply toward the purchase of a fuel-efficient vehicle. Additionally, the eligible “rebate population” currently stands at 5 million, and we’re guessing that with record unemployment across the nation not all of those folks will be in the market for a new vehicle right now – even with all the taxpayer-funded cash back.

That means the $2 billion that lawmakers claim will “keep the program afloat” through Labor Day will more likely take at least until the end of the year to be accessed.

Meanwhile, at a press conference in Detroit, Vice President Joe Biden announced that $2.4 billion in federal “stimulus” money was going to the automotive industry in the form of grants for electronic cars.

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