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Posts tagged with Cash For Clunkers

Creating demand versus time-shifting demand

I have two really bad habits: an interest in global politics and economics. Given the global economic downturn, there's been plenty to read about in both areas.

Recently, I've found an interesting subject in the debate over the 'Cash for Clunkers' program in the United States that has encouraged consumers to trade in their gas guzzling automobiles for more fuel efficient ones. Depending on who you listen to, 'Cash for Clunkers' is an example of Keynesian economics working wonders or it's a wasteful, inefficient government program whose true benefits are overestimated.