The Senate passed the Cash for Clunkers Program today, which gives consumers with cars that get less than 18 miles per gallon the ability to turn them in for a $3,500 or $4,500 cash voucher. The bill was nearly defeated by Republicans, but Democratic support saved the day in part due to Obama’s lobbying of the program. The President still needs to sign the bill into law.

Although many people believe that the program is designed to reduce global warming emissions through the eradication of gas guzzling cars, its true purpose is to help out struggling automakers and car dealers with new car sales. A person who receives a credit as part of the program cannot buy a used car with the monies. Car sales in 2009 are predicted to be nearly half of what they were in 2008.

Read more of this story »