Cash For Clunkers–Another Swell Way To Waste Resources And Stimulate Nothing

Not surprisingly, this interventionist program was a massive policy failure for several very predictable reasons. First, no economy is made better off by destroying existing resources. Contrary to conventional myth, production of soon-to-be-destroyed-war-goods during World War II did not propel the United States out of the throes of the Great Depression — and neither did euthanizing 690,114 operational vehicles “jump start” the U.S. auto industry in 2009. Both endeavors merely redirected resources to manufacturing sectors out of touch with genuine consumer demand.

 

 

 

 

 

 

 

 

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