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The Law of Intended Consequences

2009-08-15

The CARS (aka “Cash for Clunkers”) program doesn’t just mandate that the cars be rendered inoperable, but actually requires that the engine parts be physically destroyed. So folks who can’t afford a new car with the CARS rebate, or who are unwilling to take on additional debt to make the auto companies happy, are now faced with higher used car prices and higher prices for refurbished parts.

Bravo, US government — you’ve scored the trifecta: a cash subsidy for the rich and for auto companies, questionable environmental results, and an unintended burden on the poor! Regressive taxation at its best! While we’re at it, let’s break all the windows and stimulate the economy by paying the window glaziers.

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