Cash for Clunckers, this is a classic lesson in Keynseian Economics

Here, for you to read on him

http://en.wikipedia.org/wiki/John_Maynard_Keynes

Keynes advocated fiscal stimulus to offset the tendency to recession or depression resulting from excessive savings.

Our problem isn't excessive savings. It is excessive debt.

During 2000 - 2008, US consumers ran their mortgage debt up from about 60% of disposable Income to 100% of disposable Income. By 2008 total consumer debt stood at 125% of disposable income.

Much of this was financed by the trade deficit. We sent dollars to China and OPEC for manufactured goods and oil. China and OPEC recycled the dollars via the financial system back into US mortgage and other debts.

Meanwhile, since 2008, the consumer debt has decreased a couple of points, since credit is tight. The savings rate which dropped from 7% in '90 to 0% in '08 has now rebounded to about 6%.

Encouraging consumer spending on automobiles is just a bit of easing what will be a long and painful readjustment of the US economy. It is "hair of the dog", so to speak.

While government spending is needed, the spending should be on investments that provide long-lasting employment opportunities, infrastructure of enduring value, and create businesses that generate enough exports to pay for our imports.

try riding a bike behind a car that's burning oil (cough).

from the bottom up... (and good for the environment too)

Read on John Maynard Keynes and deficit spending during recessions.