The Obama Administration has another plan to screw poor people. He is working with Congress to drive the poorest people out of the used car market. The plan is called Cash For Clunkers.
Committee members emerged from the meeting Tuesday claiming a modest victory. They said they agreed to embrace a "cash for clunkers" plan that would provide $3500 or $4500 to people who replace old, low-efficiency cars with new, more fuel-efficient models.Brilliant. What will happen? People in the market for a new car will buy a $1,000 (or cheaper) running used car to sell to the government and the government will give them $3,500 or $4,500 for their junker. This will help clear the used car market of the very lowest price cars and it will help raise the price of all used cars. It effectively puts a floor of $3,500 (or more - depending on the "generosity" of Congress) an the price of a used car. The $500 and $1,000 used cars will be vacuumed from the market.
So what is the point of raising used car prices for everyone and especially the poorest of the poor? I think it is rather obvious. The Democrats hate poor people and love inflation.
Cross Posted at Classical Values