Opinion
Cash for new cars won’t help Canada’s middle class
By JF Champagne June 24, 2020
Where scrappage programs have been introduced, the results have been mixed, often with unintended consequences for the industry, policy makers, and consumers.
The prospect of offering an incentive for new cars over other services may not align with what middle-class Canadians view as COVID-recovery priorities. Photo by Evgeny Tchebotarev on Unsplash
Canada’s automotive industry has been hit hard by COVID-19. The road to recovery will be a long one, as many Canadians may be hesitant to spend their limited funds on luxury purchases like a new vehicle. While there’s a role for the federal government to play in supporting the automotive industry post-COVID, taxpayer-funded incentives to purchase a new car—otherwise known as a vehicle “scrappage” program—is not the solution, as it leaves both small businesses and middle-class Canadians out of these recovery efforts.
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