Blue Mass Group

Reality-based commentary on politics.

A new stimulus funds experiment

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It appears that in light of the huge success of the Auto Cash for Clunkers program, there will be a new stimulus experiment designed to encourage people to buy energy efficient appliances.  

Cash for clunkers’ program to be expanded to appliances in Mass.

It will apply to Energy Star rated appliances.  

So the average savings for a household that  chooses to trade in their clunky refrigerator for a new

Energy Star rated appliances will be about….

five to 10 kilowatt hours a year, or about $1 to $2 worth of electricity a year.

However, as Bruce C. Durocher, manager of Manny’s TV & Appliance, further states …

front-loading Energy Star rated washer might use nine to 15 gallons [of water]while a regular, top loader could use 50 to 60 gallons per load. The Energy Star washer can save you a lot of money, especially in communities where they charge you both for water in and waste water out

So it seems to me that the front-loading Energy Star rated washer would be a better product to

stimulate sales of because it would reduce  wastewater pollution, reduce energy costs by using much less hot water, and overall have a better dollar for dollar return on the governments investment.

So let’s be smart and limit this new cash for clunkers program to just front loading washing machines.

For all we know, if the choice of appliance exchange is unlimited, more people will buy the refrigerators instead of the washing machine.  Why make that a possibility.  Let’s drive this in the direction of creating the most bang for the buck.  

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Comments

  1. I like the idea of incenstives to stimulate purchasing while conserving energy. However, one criticism I had for “cash for clunkers” was Honda and Toyota were the biggest benefitaries of the deal with a combined 33% of car purchased from those two “non” American compaines.

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    p>

    1. Toyota Corolla
    2. Honda Civic
    3. Ford Focus
    4. Toyota Camry
    5. Hyundai Elantra
    6. Toyota Prius
    7. Nissan Versa
    8. Ford Escape FWD
    9. Honda Fit
    10. Honda CR-V AWD

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    p>But there were clearly positive benefits from this program…

    • Total Cars “Clunked”: 690,114
    • Top 3 Clunkers: Ford Explorer, Ford F-150, and Dodge Grand Caravan
    • Vehicle Type Clunked: 84% were trucks, SUVs, or vans
    • Vehicle Type Purchased: 59% were passenger cars
    • Average MPG of Clunkers: 15.8
    • Average MPG of New Purchases: 24.9
    • Fuel Economy Improvement: 58% (19% improvement over the average vehicle on the market)

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    p>So…

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    p>First I think we should consider Cash for Clunker “Part Deux” with some more stringent MPG requirements and some way to make more sales of American owned companies (I know we employ workers in Toyota plants in the US but it would be good to keep the profits here too). This needed to be much tighter (larger MPG improvements and higher minimum MPG values)…

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    Clunkers must get less than 18 miles a gallon combined fuel economy, as rated by the Environmental Protection Agency. The new car you’re buying must get at least 22 mpg, a new SUV or small truck must be rated at least 18 mpg and there’s no minimum when you’re buying an extra-large work truck or van.

    If a clunker car is traded in for a new car that achieves 4 to 9 miles per gallon better fuel economy, the credit is $3,500. If it gets 10 mpg more, the credit is $4,500. If you’re trading in an SUV or pickup and want to buy another similar vehicle, you get $3,500 if it there’s only a 1 mpg improvement. If there’s a 2 or more mpg improvement, you get $4,500.

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    p>Second, The Cash for Clunkers program REQUIRED the dealers pay the customers the “scrap” value for their cars which got crushed. The Globe reported that very few dealers paid the customers and pocketed he money themselves. I am hoping the search party for the missing AG (Martha “Clutch” Coakley) is successful and the prosecutes these dealers.

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    p>Third, if we are going to have “Cash for Caulkers” or “Cash for Appliances”, then please implement some method to make sure these are “American manufactured” appliances and energy equipment. Please also make sure business people are warned of fines or prison for any abuses of these programs.

    • Made in America is very important. Tried to find info on which appliances are made in America.  

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      p>According to stillmadeintheusa.com, Whirlpool manufactures washing machines in Clyde OH.

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      Whirlpool acquired Maytag Corp. in March 2006, and began integrating operations of operations of the two companies.

      Maytag Corp. (formerly of Newton, IA): On March 31, 2006, this U.S. manufacturer of washers, dryers, refrigerators, and dishwashers became a subsidiary of Whirlpool. Whirlpool will continue to market Maytag Corp. brandnames, including Maytag, Amana, Magic Chef , and Jenn-Air , but closed the Newton facility.

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      p>If anyone is the market for a washer and wants to use the stimulus rebate, a good investigation of current manufacturing locations is in order before choosing a brand.

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