September Retail Data Demonstrates Stupidity of 'Cash for Clunkers'

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U.S. Retail Sales fell a seasonally adjusted -1.5% in September after a downwardly revised 2.2% increase in August. Of course, the whipsaw in sales over the past 2 months represents the "Cash for Clunkers" program impact in August and the subsequent withdrawal of the program in September. Excluding the -10.4% plunge in auto sales, retail sales rose 0.5% in September. If someone can tell me what "Cash for Clunkers" actually accomplished, I’d really like to know.

Year over year retail sales were down -5.7%. After falling off a cliff 12 months ago, U.S. retail sales have stabilized but still remain at depressed levels, -9.2% below their peak levels in November 2007.

Comments

[Dave Wrixon:]

It was supposed to pump up the image of the Obama regime. You tell me. Does anyone actually believe he knows what he is doing? Isn't it about time he got a Nobel Prize for rescuing the World Economy to go with the one he got for establishing World Peace?

Oct 15 07:42 AM

[snagglesnarf:]

I think Obama deserves the Nobel prize because when you visit your local car dealer, the lot is filled with peace.

Oct 15 07:00 PM

[2houndz:]

It transferred more money from my pocket and yours to an industry that supports the UAW voting machine. That was the only intention. Don't fool yourself into thinking that anyone in Congress or the Executive Office burned a lot of brain cells in figuring out how it would help the economy, the consumer and certainly not the taxpayer - only how it would help their job security.

Oh, and before you ask about the loan mod program - same thing.
Just another way of getting money from us to support the bankers while making the rest of us feel like they are doing us some kind of favor.

Oct 15 10:27 PM