Not much of a surprise, but Iowa Senator Tom Harkin is behind Cash for Clunkers and thinks lower income families will especially benefit from it.
“Low-income Americans mostly are the ones who are driving those cars,” Harkin says. “They can’t afford to buy a new car. They can’t afford to get the credit. Even if they could come up with a small down payment, they can’t get the credit to buy a new car. And then you provide the demand pull. You get a couple million new cars off the inventory list. This might stimulate G-M to start and run its plants more this summer.”