Today it is announced that after only four days, the cash for clunkers program has run out of money. But, the white house press has said not to worry, congress will provide new money. Let's analyze this:
_Any government program is always a redistribution_. Now in this case whose money is redistributed? Well, the tax payers money is redistributed to other tax payers who desire to get a new car using that old clunker that is hanging around the house. The president has said that taxpayers will benefit because it makes the fleet more fuel efficient. But, since these clunkers must be destroyed, the supply of used cars will decrease causing prices to rise on used cars (theoretically by $4500 in time) thus preventing many lower income people from owning a car. Not only that, but prices of auto parts will increase as fewer used parts are available thus it will be more expensive to keep your car running.
Now, who could this redistribution be designed to help? Well, that is easy, Government Motors (GM) and the United Auto Workers Union that supported Obama.
The _unseen_ (if this money would have been left with the taxpayers):
1. What other things would have been purchased had the rightful owners (taxpayers) been allowed to keep their money; how many jobs are lost because of what is not purchased?
2. How much would have gone into savings providing capital for companies to expand production and keep employees?
3. What new discoveries have been prevented from a lack of capital for investment?
4. After the new cars are worn out, whose children will still be paying the debts?
5. How much is "clipped off" in administrative costs by government re-distributors?
6. Our government are the only ones that see prosperity in destruction. Many old cars have still have value.
