It’s time for Cash for Clunkers Part II, or as everyone else likes to call it, Rebates for Refrigerators. The Obama administration, in its latest attempt to prop up America’s troubled economy, has decided to earmark $300 million for yet another stimulus plan. This one involves refrigerators, as well as washers, stoves, and other appliances.     

The deal is this: if you buy a new appliance that has an Energy Star rating, you get anywhere from $20-$200 off the price of the appliance. Also, you don’t have to trash your old appliance. Thus, savvy consumers could obtain a rebate on a new appliance and make still more money by selling the old one.

However, will Cash for Clunkers (C4C) Part II really help our economy in the long run? Looking at the original C4C, about $3 billion was earmarked for this car trade-in program. Recent profit reports mention foreign car-makers like Honda, Hyundai, and Toyota as the big winners of C4C, with domestic manufacturers, like Chrysler and GM, still losing money.   

So, if we are to understand correctly, $3 billion was just spent to prop up some foreign economies.

Now, let’s look at who is really making our appliances. Over 2/3 of all major appliances are sold by U.S.-backed GE Inc. or Whirlpool. That’s a good start. Only Swedish company AB Electrolux (maker of the Frigidairs, Kelvinator, Westinghouse, and Gibson brands) is the major foreign contender for U.S. dollars.

So, assuming that people are anxiously awaiting to spend some cash on reduced price appliances, the U.S. economy could really be helped this time around. And, even better, you get to keep or sell your clunker. 

State governments need to submit a rebate program proposal no later than October 15th of this year in order to be considered for the stimulus program.

Unfortunately, it is as yet uncertain just how the appliances that were purchased under the current Energy Star program will fare. Hopefully, if you just bought an energy-efficient refrigerator or washer, you’ve kept your receipts.