Part #7: Did You Know Joe Donnelly is a Democrat?
Jul 11, 2018
Democrat Donnelly 7
Donnelly Co-Sponsored Failed Cash for Clunkers Program
INDIANAPOLIS - While Democrat Joe Donnelly has never been a lead sponsor on a bill to pass Congress, in 2009 he co-sponsored legislation creating Barack Obama's now-infamous Cash for Clunkers program. (“Cosponsors: H.R.1550 — 111th Congress (2009-2010),” Congress.gov, Accessed 8/3/17)
Experts agree that Cash for Clunkers hurt the automotive industry and didn't create nearly as many new jobs as promised, all while putting taxpayers on the hook for an additional $3 billion during the recession. As part of the program, Americans could trade in older vehicles for a credit of up to $4,500 to put toward a new, more fuel-efficient vehicle.
As Democrat Donnelly was attempting to sell Hoosiers on the program, he led Hoosiers to believe Cash for Clunkers would quickly turn around the economy:
- "Not only will this legislation provide a much-needed boost to our auto industry, but it will also help us achieve energy independence while creating local jobs."
-Democrat Joe Donnelly (Office of Congressman Joe Donnelly, 4/2/209) - “This program is worth its weight in gold.”
-Democrat Joe Donnelly (Kokomo Tribune, 7/31/2009) - "This program has been an enormous success…This is a win-win-win for our country."
-Democrat Joe Donnelly, (CSPAN, 42:50-43:30, 7/31/2009)
Democrat Donnelly's Cash For Clunkers Was a Lemon:
Cash For Clunkers Actually Decreased Auto Revenue: According to a study by Texas A&M, Cash for Clunkers actually cost the automotive industry – which is heavily based in Indiana – a staggering $3 billion in revenue over a nine-to-11 month period. Americans bought more fuel-efficient and less expensive cars while Cash for Clunkers credits were available. (Fox News, 8/11/2014)
It Cost $1.4 Million to Create One Job With Cash for Clunkers: According to research by the Brooking Institution, it cost $1.4 million for each job created through Cash for Clunkers. To put that in perspective, the report compared this to the one job that is added for each additional $95,000 that’s put toward unemployment benefits. (Politico, 10/30/2013)
Cash For Clunkers Mostly Helped the Wealthy: The same Brooking Institution report found that the Cash for Clunker program primarily benefited wealthy and more educated Americans who could afford to buy a new, fuel-efficient car. The report found that while over 650,000 clunkers were traded in, consumers only bought 380,000 vehicles they wouldn’t have otherwise purchased. (Politico, 10/30/2013)
Even an Obama Adviser Admits Cash for Clunkers Was a Failure: Former Obama administration economic adviser Austan Goolsbee said in 2011 that “if given a second chance he would not have backed the Cash for Clunkers program,” admitting that it didn’t work. (Politico, 10/20/2011)
Cash For Clunkers Actually Decreased Auto Revenue: According to a study by Texas A&M, Cash for Clunkers actually cost the automotive industry – which is heavily based in Indiana – a staggering $3 billion in revenue over a nine-to-11 month period. Americans bought more fuel-efficient and less expensive cars while Cash for Clunkers credits were available. (Fox News, 8/11/2014)
It Cost $1.4 Million to Create One Job With Cash for Clunkers: According to research by the Brooking Institution, it cost $1.4 million for each job created through Cash for Clunkers. To put that in perspective, the report compared this to the one job that is added for each additional $95,000 that’s put toward unemployment benefits. (Politico, 10/30/2013)
Cash For Clunkers Mostly Helped the Wealthy: The same Brooking Institution report found that the Cash for Clunker program primarily benefited wealthy and more educated Americans who could afford to buy a new, fuel-efficient car. The report found that while over 650,000 clunkers were traded in, consumers only bought 380,000 vehicles they wouldn’t have otherwise purchased. (Politico, 10/30/2013)
Even an Obama Adviser Admits Cash for Clunkers Was a Failure: Former Obama administration economic adviser Austan Goolsbee said in 2011 that “if given a second chance he would not have backed the Cash for Clunkers program,” admitting that it didn’t work. (Politico, 10/20/2011)
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