Not so long ago Congress passed a one billion-dollar CAR Allowance Rebate System (CARS) program as part of a stimulus package to help kick start the economy.
I will not dwell on how the economy came to this point, nor the stimulus package itself.
However, the proof that American's are just begging to spend is in the success of the CARS program.
Within weeks and estimated 240,000 cars have been processed and the program is in danger of running out and more Americans want to get these incentives.
Why is this important? Let us look past the $4,500 incentive and looks at the facts.
240,000 cars have been purchased, that boost the dealers and the manufacturer income.
Most of the 240,000 will need loans to complete the transaction, because, $4,500 is only a decent down payment.
This means more loans will be written and it helps the banking and financial industry.
It gets the money that is just sitting in the vaults moving again.
Lastly, each of these cars that are financed will require higher grade of insurance.
This will help the insurance industry.
Therefore, the billion-dollar cost of this program goes far beyond the price tag of the program.
Currently, the United States House of Representatives passed emergency measure to fund an additional 2 billion-dollar to the CARS program.
This measure passed the house and is on its way to the Senate for approval.
When passed, simple math suggest that another 480,000 cars are just waiting to be purchased.
This is proof that Americans want to spend and this economy is ready to take off.
I see it everyday as I shop.
Ordinary Americans are just waiting for good news, so they can open up their pocket book and spend.
Maybe a little more smartly, but they are ready.
There's more proof that the economy is ready to take off.
When going through an undergraduate economic class the professor told me that there was the poor man's indicator that many economists overlook.
He told me too look at a skyline and count the number of cranes against the sky.
The greater the number, the better the economy.
This also goes for new building of industrial and commercial property.
I see this everyday as I commute to work everyday and I see land being cleared and new buildings going up.
This is another example that America is ready to explode economically in growth.
The only thing holding us back is ourselves and with luck, it will not be a long wait.
I will not dwell on how the economy came to this point, nor the stimulus package itself.
However, the proof that American's are just begging to spend is in the success of the CARS program.
Within weeks and estimated 240,000 cars have been processed and the program is in danger of running out and more Americans want to get these incentives.
Why is this important? Let us look past the $4,500 incentive and looks at the facts.
240,000 cars have been purchased, that boost the dealers and the manufacturer income.
Most of the 240,000 will need loans to complete the transaction, because, $4,500 is only a decent down payment.
This means more loans will be written and it helps the banking and financial industry.
It gets the money that is just sitting in the vaults moving again.
Lastly, each of these cars that are financed will require higher grade of insurance.
This will help the insurance industry.
Therefore, the billion-dollar cost of this program goes far beyond the price tag of the program.
Currently, the United States House of Representatives passed emergency measure to fund an additional 2 billion-dollar to the CARS program.
This measure passed the house and is on its way to the Senate for approval.
When passed, simple math suggest that another 480,000 cars are just waiting to be purchased.
This is proof that Americans want to spend and this economy is ready to take off.
I see it everyday as I shop.
Ordinary Americans are just waiting for good news, so they can open up their pocket book and spend.
Maybe a little more smartly, but they are ready.
There's more proof that the economy is ready to take off.
When going through an undergraduate economic class the professor told me that there was the poor man's indicator that many economists overlook.
He told me too look at a skyline and count the number of cranes against the sky.
The greater the number, the better the economy.
This also goes for new building of industrial and commercial property.
I see this everyday as I commute to work everyday and I see land being cleared and new buildings going up.
This is another example that America is ready to explode economically in growth.
The only thing holding us back is ourselves and with luck, it will not be a long wait.
Source...