What it is is a transfer of cash from lower-income Americans who depend upon having modestly-priced used cars available to purchase and drive to higher-income Americans who can use such a subsidy to trade in a perfectly fine used car for a new one, as well, of course, as a propping up of the auto unions and the supposed economic performance of Car Czar Obama. Were those higher-income Americans not so incentivized to buy a new car, their dollars would either be spent on something else in the economy or stored up as savings in a bank or elsewhere in what would provide capital for business expansion.
I don’t see a smidgeon or good or fairness in the program.
Fox played a sound bite from a Republican Rep. on the Cash for Clunkers program. The dude said, “Maybe we should make a Cash for Cluckers” program and pay people to eat chickens.”
LOL.