“Cash For Clunkers” Leads To “Cash For Appliances”
Supported by $300 million from the economic stimulus package, the government will be offering “Cash for Appliances” to consumers who get energy-efficient refrigerators, dishwashers, air conditioners and other appliances to replace their older models. (h/t Healed Planet)
And like the $3 billion cars program that gave consumers money for swapping their clunkers for more fuel-efficient rides, the appliance initiative seems destined to inspire shoppers, drive up sales for a while and profoundly divide economists over how much lasting good this chunk of government spending will do for the economy.
The White House’s Council of Economic Advisers estimates that automobile sales increased by 330,000 in 2009 because of the Cash for Clunkers program.
No one doubts that the appliances program will attract consumers. While the programs will vary by state, some of the proposed rebates that have been announced so far range from $50 to $100 per appliance. The state-administered programs also have varying requirements regarding whether consumers must recycle an old appliance to qualify for the rebate.
The states are required to estimate how many jobs their programs will create. California, which will receive $35 million, preliminarily estimated that it will create 350 jobs. This was based on the assumption that for every $92,000 expended, one job would be created.Click here for reuse options!
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