The Feds are shutting down the Cash for Clunkers program after less than a week. Allegedly, it’s out of money, but The Truth About Cars says it’s because the Feds were overwhelmed with paperwork. Also, contrary to Government intentions, people were not using the program to buy teeny weeny eggbox cars like they wanted them to. So, let’s review:
1. The Government, using deficit-financing, offered a giveaway.
2. People who didn’t need and ordinarily wouldn’t have purchased new cars ran out and bought them anyway, making the program run out of money within a week.
3. Thousands of perfectly serviceable cars, that could have been stripped for useful parts at least, will instead be wastefully destroyed.
So, it didn’t work the way they wanted to, and it ended up costing more than they expected, and resulted in massive waste.
And they’re talking about pumping more money into it.
And some people still think Government run health care is a great idea.