Cash For Clunkers Boondoggle Is A Tax On The Poor
Not only is “cash for clunkers” already bankrupt despite the politicians thinking they’d provided enough money for it to last to the end of the year (think about what that portends for their projections about the price of health care and other types of spending), but the program also represents a tax on the poor. As a commenter noted on another post:
Actually, while obviously encouraging Americans to go further in debt, this program is more of subsidy for wealthier Americans and also very harmful to poorer Americans. Poorer Americans buy used cars. This program is subsidizing richer Americans to buy new cars, but only on the condition that their used cars are destroyed, thus reducing the supply of used cars going forward. I suppose it doesn’t count as a “tax”, but this certainly seems like a tax increase for people making under $250k per year (particularly those making under $30k per year).
So, in short, “cash for clunkers” not only encourages overconsumption by subsidizing unnecessary vehicle purchases and not only does the appropriation for the program represent more deficit spending at a time when our federal government is already bankrupt but it also decreases supply in the used car market thus driving up prices for lower-income Americans.
Basically, this program accomplished the exact opposite of everything it is intended to accomplish.
Hey, let’s put these idiots in charge of health care!
