COMMENT Sometimes, fiscal stimulus can be rather fun. Participants in the American “cash for clunkers” scheme are eligible for government grants of up to $4,500 to scrap their old, inefficient cars, so long as they replace them with new, greener models. The administration has been taken aback by the enthusiasm with which Americans have embraced the plan.
The scheme, which is similar to others under way across Europe, was expected to run from July 24 until November. But take-up has been so rapid that, after little more than a week, it has almost burnt through its $1bn of funding. A proposal to sluice a further $2bn into the scheme now awaits approval by the Senate.
