Cash For Clunkers Could Be Too Effective

Yesterday, Prime Minister Gillard has promised a “cash for clunkers” scheme that Labor will introduce if re-elected. The scheme will give people $2,000 if they trade in an old, pre-1995 car for a new car that meets current emissions standards.

It’s not a new idea – Cash For Clunkers was a program Obama introduced eleven months ago to boost the brink-of-bankruptcy US auto industry. So I thought it might be interesting to have a look at how that went, and it turns out it was actually pretty successful.

For analysis, here’s America’s most trusted newscaster explaining that success:

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