Coming on the heels of the “Cash for Clunkers” program that helped reinvigorate the auto industry, while simultaneously adding some much needed fuel efficiency to the US highways, the government has announced a $300 million incentive aimed at the appliance industry. Beginning in October, consumer will receive rebates ranging from $50 to $200 for the purchase of energy-star rated appliances.

As BusinessWeek notes, “the money can’t come soon enough for the home appliance industry, which is mired in an unprecedented sales slump that began when the housing market cooled in 2006. Since then that slump has worsened considerably. Shipments of washers, dryers, refrigerators, and ovens dropped 10% in 2008 and are down 15% through July.”

While this program might be following a similar formula to CARS, it’s hard to imagine it having as big an impact. State money to encourage consumers to make the switch has been around for years without much success. These federal funds are merely piggybacking onto those existing vouchers so it’s unclear whether this added money will be enough to really influence shoppers to change, despite the cost-saving benefits.

While I applaud the government for attempting to bolster the economy with the long term health of the environment as an additional plus, the benefits of these programs are only short-lived at best. I understand that the country wants to see progress and this does achieve immediate results, but it seems this money could be better spent in ways that promote job creation in emerging industries that can sustain long term growth.

[image via ingorrr]