Monday, August 10, 2009

Yet More Cash for Clunkers.

The Senate has coughed up another $2 billion of the taxpayer’s money.

This additional handout to the auto companies is getting more expensive all the time. One wonders what’s going to happen to sales when the program finally does expire – all of the late fall demand has been pulled into August.

And it still remains as regressive as ever – punishing poor people looking for a cheap car for basic transportation by destroying usable vehicles and parts, reducing the supply, and raising prices. If you’re running a small used car business catering to the starter used car market, you’re collateral damage.

Countries do not get rich by destroying usable assets.