CARS - Cash for Clunkers
CARS, Car Allowance Rebate System, otherwise known as the Cash for Clunkers Program, is working fabulously. The program was originally offered through Nov 1 or through the first billion buckeroos, whichever came first. The program is only a few weeks old and consumers have responded to the tune of approximately 250k new vehicles purchased and have used up the first billion. Just think, 250k vehicles which were achieving less than 18 mph are off the road. And, less pollutants in the air. And, more car sales for a suffering industry. All of these were target achievements; there are few federal programs which achieve their targets.
But, you’ll hear that the first billion has nearly been spent with 90 days still to go. You’ll hear that some are saying that we can’t spend any more buckeroos on the program; especially Republicans, who at the moment, seem hell-bent on opposing anything … anything … coming out of the current Administration and Congress. What are they thinking?
Several years ago, in another life, I had a series of conversations with a President of a major retailer at the time about commissioned salespeople in the department stores over which he presided. My original caution was to approach commissions gradually with the idea that you can always increase them if need be. After all, salespeople were hired to sell … and they currently were selling. “More” is always the cry of a CEO. So, commissions were implemented at about 7% of sales. The next year my conversations with the CEO were about pulling the commission program because it was costing us too much real dollars. My argument was that the sales goals were achieved so the commissions were relative to the performance gained. Alas, all he could see were the real dollars. What was he thinking? Can you see a parallel? If the program got the results desired, how can it be “too expensive”?
But, wait … if you call in the next 10 minutes … you’ll hear that some wise Pols, including House Minority Leader John Boehner, R-OH, are pushing an emergency bill to the floor to fund another $2bn to keep the program afloat. We need to keep this ball in the air.
On this date in history: 1993 – Nolan Ryan, pitching for the Texas Rangers, wins his 300th game, joining an elite group of old guys making that mark: Phil Niekro, Gaylord Perry, and Early Wynn.
On a positive note: We’re not really a nation of couch potatoes. In 2008, more than 61mn volunteers spent around 8bn hours volunteering, a number not seen since 2005. Good on you, America!
Blessings.