posted on Jul, 24 2010 @ 02:44 PM
The intent was to stimulate American manufacturing, however there were trade issues that forced the program to remove 'made in America' rules. The
rules still included metrics on size and fuel consumption which favored foreign manufacturers. In the end taxpayer money was spent on imports, which
was a negative impact on GDP.
From what I recall, every $50,000 spent on the program resulted in $4,000 of payoff. The credit shrank with your qualifications, so those who had the
most incentive were the least qualified and least likely to fulfill their loan obligations. This also pulled sales forwards from the following
quarter, so the effect was to reduce inventory but not sustain a smooth production line.
In summary we shipped taxpayer money overseas, and in return shrank next quarter US manufacturing and GDP.
It was a well intentioned idea implemented poorly, it backfired on the US and the negative impact was buried by politicians, lobbyists, and the MSM by
[edit on 24-7-2010 by Dbriefed]