Saturday, August 22, 2009

Huh oh, Here Comes Debra "Downer" on Cash for Clunkers

If you're familiar with Saturday Night Live sketch, Debbie Downer, than you will understand where Debra Mitchell, consumer psychologist for the UW School of Business is coming from.

WPT's Here and Now, with Frederica Freyberg, couldn't find a more negative Debbie Downer for the highly successful "Cash for Clunkers" program ending this Monday.

Debra "Downer" Mitchell sees possible problems waiting in the wings after the program ends, like:

1. Buyers that are gone for good, or at least 5 or so years.

2. The possible "slump" that is on the way.

3. It will lead to a bad hangover for consumer confidence.

4. Even though people will see a 61% increase in fuel efficiency savings, up to $1000 a year, they might start driving more.

5. People might buy even more fuel efficient cars increasing driving time and pollution.

6. The poor salvage yard owners will be stocked up with parts and junk cars for recycling.

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