New 'Cash for Clunkers' Targets Appliances

A new federal version of the Cash for Clunkers program will soon target appliances in a bid to convince consumers to replace their leaky dishwashers and grinding refrigerators. The $300 million Cash for Appliances program will offer rebates to buyers who replace worn out appliances with energy efficient models. Just how much the program will boost the economy is wide open for debate among economists, notes the Washington Post.

"The premise seems to be that for Americans to be richer, they need to throw out their old appliances faster—I don't see it that way," said an economics professor. "I don't like the idea of just spending money for its own sake." The number of home appliance shipments is down 12% over last year's already-weak sales. Some manufacturers fear the program is taking so long to get off the ground that it's actually depressing sales while consumers wait for a rebate guarantee.
(More economic stimulus package stories.)