Friday, August 21, 2009

A Tale of A Cash for Clunker Victim

From the Volokh Conspiracy: by Jim Lindgren
The Death Throes of a Corvette.---

In the Great Depression, the government paid to destroy crops in order to prop up farm prices — about as dumb a policy as can be imagined.

Today the government pays to destroy cars in order to ... frankly, I don't know why.

"Cash for Clunkers" appears to be a bizarre combination of the "broken windows fallacy," the desire to change the climate of the planet, and staggering administrative incompetence. In other words, "Cash for Clunkers" hits the trifecta: bad economics, bad science, and bad government.

Witness the dying gasps of a Corvette. (video)

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