Tuesday, March 31, 2009

The government is considering offering incentives to get people to trade in vehicles before model year 2001. Drivers could get up to $5000 toward a new car if they give up their older car and purchase new US-made cars that meet fuel efficiency standards.

Interesting way to boost GM and low-energy vehicles at the same time. A few problems: 1) messing with demand for durables can be expensive later; 2) I wonder how much energy savings this will actually promote, since some older cars are pretty gas efficient.

Any more that you can come up with?