Sunday, August 02, 2009

Cash For Clunkers

This is how a Cash for Clunkers car is destroyed. Now think of what this will do to the low end used car market. People who depend on these low end vehicles to get around will no longer be able to afford transportation. Socialism at work.

Here are a couple of other things I have written on the program:
Obama Plan To Raise Used Car Prices
What Is Wrong With Republicans? #2 In A Series

Cross Posted at Classical Values

1 comment:

simentt said...

Ah, the beauty of destroying wealth - an actually working and probably completely paid device - for the promise of a rebate on a new item for which a loan will need to be taken.

At home, we haven't instituted the same policy (no car industry of relevance), but one of our ministers mentioned that the financial crisis was beneficial for the health of our younger population, as it lowered the replacement rate on new-ish cars, thus making older cars less available to the young and speed-prone. I believe that the intention is that our young will be driving their very old cars (The car-pool of Norway is more aged than that of Albania, due to high taxation on new cars) until they break (hopefully in a non-accident way), and then refrain from driving.

In the eternal struggle about how unregulated the market should be, I tend to vote for the market - more and more because that would remove the stupidity of the politicians from the equation, rather than just the productivity improvements.