The Law of Unintended Consequences struck again in the latest Liberal program that robbed Peter to pay Paul, the Cash for Clunkers program. Government officials have labeled the program a roaring success due to the high number of people who took advantage of the offer. Is this how we define success nowadays? If the government sponsors a soup kitchen is it a roaring success if more and more people come to be fed every night? Of course the program was a hit; participants are buying an asset at a significant discount, paid for by their fellow taxpayers!
Maybe we should consider defining success based on the stated goals of the Cash for Clunkers program, a reduction in greenhouse pollutants and a boost in sales for Detroit automakers. The net effect on the environment from this racket is ridiculously minor. But more to the point, who benefited the most from the Cash for Clunkers program? Japanese and Korean automakers registered the biggest market share gains, capturing over 50% of the new sales.
It would have been far more efficient if the government had simply cut a check for the billions and deposited it directly into the accounts of the UAW and GM/Chrysler. Instead we had to see this pretense of a capitalist, market solution – – and these nitwits couldn’t even make that work.