A Real Clunker (III)

The Wall Street Journal takes a look back at the “Cash for Clunkers” program, and pronounces it a dismal failure.  The program clearly caused a one-month spike in new car sales, but sales dropped sharply in September, to a point below last September’s sales, and many now believe that the program simply gave people a monetary incentive — funded with tax dollars — to trade in cars and make new car purchases that they would have made in the near future in any case.  In the meantime, many functioning cars were converted to scrap, the used car market was affected as a result, and the federal treasury was depleted to the tune of billions of dollars.

Other than that, it was a roaring success!

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