Congress approves a measure to subsidize car purchases – consumers can get as much as $4,500 to trade in old cars. Obama expected to sign bill.

Source: CNNMoney.com

Date: 6/19/2009

Keys: Marketing, promotion, pricing, government

Link: http://money.cnn.com

Questions for discussion:

• Why might some people consider this government stimulus to the economy a “good” or “bad” idea?
• Consider what might happen after the program is ended. Consider the impact this policy might have on those who have recently bought a new car but will not benefit from this promotional tool. How might consumers behave in the future?
• Can you think of a better way to stimulate purchases of cars?