Cash for Clunkers Stimulating New Areas of the Economy

Tue, Aug 4, 2009

According to a Wall Street Journal article other interesting areas of economic stimulation are occurring from the Cash for Clunkers program.

Side benefits to Cash for Clunkers

Most of us have been focused on the news around trading in clunkers and the auto sales industry, but interestingly enough others are benefiting from the clunker program. The clunkers are required by the government to be disposed of after the trade, so the inefficient vehicles are kept off the road. How might this occur? Apparently, sodium silicate is an approved chemical used to destroy car engines.

Sodium silicate is the designated agent of death for cars surrendered under the federal cash-for-clunkers program. To receive government reimbursement, auto dealers who offer rebates on new cars in exchange for so-called clunkers must agree to “kill” the old models, using a method the government outlines in great detail in its 136-page manual for dealers: Drain the engine of oil and replace it with two quarts of a sodium-silicate solution.

The heat of the operating engine then dehydrates the solution leaving solid sodium silicate distributed throughout the engine’s oiled surfaces and moving parts, says the National Highway Traffic Safety Administration publication. These solids quickly abrade the bearings causing the engine to seize while damaging the moving parts of the engine and coating all of the oil passages.

Learn something everyday, huh? One man reported he typically sells 200 gallons per week, however, last week he sold 15,000 gallons. It’s amazing how this program, or any for that matter, can spark other areas of business and spending.

Anyone thinking about going into the sodium silicate business? Seriously, if you watch markets and pay close attention, the next opportunity may just be around the corner to use your talents and serve others in some area of need.

Tags: Cash for Clunkers