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Stimulus that actually stimulates the economy? Wow. (Ford increases production)

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Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-13-09 12:41 PM
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Stimulus that actually stimulates the economy? Wow. (Ford increases production)
Ford Motor Co. (F) boosted its production plans for the rest of the year as consumers, spurred by the "Cash for Clunkers" program, continue streaming into showrooms to buy.

Ford increased its third-quarter production to 495,000 new vehicles, driven primarily by the demand for its Focus and Escape models. The company will build 6,000 more Focus vehicles during the quarter through overtime and Saturday shifts.

It is the third time the auto maker has tweaked its output, which will now be 18% higher than the same period a year earlier.

Ford also said it will now build 570,000 vehicles in the fourth quarter, 33% higher than year-earlier levels and 15% above planned third-quarter output.


http://online.wsj.com/article/BT-CO-20090813-712491.html

Stimulus that actually stimulates. Well color me pink. Those increased wages will be spent. More car = more parts = more jobs at part companies. More part = more raw material = increased sales at refineries, and commodity producers. Increase profits = increased shareholder value.

A small amount of money ($1B initially now $3B total) has a multiplying effect in the economy. Sad thing is many even on DU don't get how stimulus works and thus bashed Cash for Clunker despite it having more of a stimulative effect that virtually every other (and much more expensive) program the govt has launched. A program doesn't have to help you directly to help you indirectly.


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