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White House fights back on Cash for Clunkers The Obama administration on Thursday lashed out at a prominent critic of its Cash for Clunkers program, arguing that the popular trade-in initiative helped give the auto industry and the economy a much needed boost in the past few months. In a blog post on whitehouse.gov, the administration argued that a report on Clunkers by automotive Web site Edmunds.com "doesn't withstand even basic scrutiny" and is based on "implausible assumptions." On Wednesday, Edmunds.com released a study that argued Cash for Clunkers did not have a great impact on the auto industry. The report said that 690,000 new vehicles were sold under the program last summer, but that only 125,000 of them would not have been sold without the Clunkers rebates. As a result, the report said, the administration's economic claims for the program "have been rendered quite weak." The Clunkers program gave car buyers rebates of up to $4,500 if they traded in less fuel-efficient vehicles for new vehicles that met certain fuel economy requirements. A total of $3 billion was allotted for those rebates. The Edmunds report also said that taxpayers shelled out an average of $24,000 per car sold as a result of the program. But the White House fired back, saying Thursday's Commerce Department report that showed auto sales contributed 1.7 percentage points to the economy's 3.5% growth rate in the third quarter is proof that Cash for Clunkers had a meaningful impact on both auto sales and the broad economy. "Edmunds.com has released a faulty analysis," the blog post said. "This is the latest of several critical analyses of the Cash for Clunkers program from Edmunds.com, which appear designed to grab headlines and get coverage on cable TV." The administration argued that Edmunds' conclusions were incorrect because the study assumes that the market for cars that didn't qualify for Clunkers was unaffected by the program. "In other words, all the other cars were being sold on Mars," said the administration. The administration's blog post argued that Clunkers helped to lower auto prices on the rest of the vehicle market as well, a fact the administration said Edmunds ignored. The White House also said that people were drawn into dealerships because of the program and ended up purchasing cars even if their trade-in didn't qualify for the program. Cash for Clunkers will have a long-term impact on the overall economy, since automakers increased their production through the end of the year to meet demand created by the program, the administration said. Finally, the administration said the Edmunds' report flies in the face of independent analyses, and the administration's Council of Economic Advisers. The blog urged readers to "put on your space suit and compare the two approaches yourself." Edmunds stands by its report: In response, Edmunds.com said Thursday that its figures were correct, and that the growth in GDP had more to do with naturally recovering auto sales and not with incentive programs. The company also said that there was no hard evidence of consumers buying cars after discovering they didn't qualify for the rebate. "It does, after all, seem a bit odd that masses of consumers would elect to buy a vehicle because of a program for which they don't qualify -- doubly so when you add in the fact that prices shot up during Cash for Clunkers, creating a disincentive to buy," Edmunds said in a statement. In the end, Edmunds said the report actually shows that there is some good news about the auto industry -- the recovering economy is helping boost auto sales even without the help of Clunkers. "With all respect to the White House, Edmunds.com thinks that instead of shooting the messenger, government officials should take heart from the core message of the analysis: the fundamentals of the auto marketplace are improving faster than the current sales numbers suggest." |
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SafeLink Wireless is a government supported program that provides a free cell phone and airtime each month for income-eligible customers. |
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Lifeline Benefits Lifeline Assistance is part of a program that was created by the government to provide discounted or free telephone service to income-eligible consumers. To help bring you this important benefit, SafeLink Wireless is proud to offer Lifeline Service. Through our Lifeline Service you will receive FREE cellular service, a FREE cell phone, and FREE Minutes every month! SafeLink Wireless Service does not cost anything – there are no contracts, no recurring fees and no monthly charges. Any Minutes you do not use will roll-over. Features such as caller ID, call waiting and voicemail are all also included with your service. If you need additional Minutes, you can buy TracFone Airtime Cards at any TracFone retailer Walmart, Walgreens, Family Dollar, etc). SafeLink Airtime Cards will be available soon. Your exact benefits, including the number of free Minutes you will receive, depend on the state you live in. Please enter your ZIP code to get the details for your state. |
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How to Qualify The process to qualify for Lifeline Service depends on the State you live in. In general, you may qualify if... 1. You already participate in other State or Federal assistance program such as Federal Public Housing Assistance, Food Stamps and Medicaid. OR 2. Your total household income is at or below 135% of the poverty guidelines set by your State and/or the Federal Government. AND 3. No one in your household currently receives Lifeline Service through another phone carrier. 4. You have a valid United States Postal Address. In order for us to ship you your free phone you must live at a residence that can receive mail from the US Post Office. Sorry, but P.O. Boxes cannot be accepted. In addition to meeting the guidelines above you will also be required to provide proof of your participation in an assistance program, or proof of your income level. |
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SafeLink Wireless offers qualifying customers FREE cellular service. This service is currently available in Alabama, Connecticut, DC, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin. Soon, SafeLink Wireless service will be offered in the following states: |