Cash for Clunkers drives up prices

[Fletch]

Apparently when you reduce supply (by insisting that used cars coming in for the program be destroyed), prices go up.

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Not like anyone could have seen this coming or anything, right?

Hey, thanks for nothing, Uncle Barack!

 

[ghunter]

Government intervention hurts the free market? Say it isn't so!

 

[dross]

Most attempts to meddle in the economy seem to be rooted in ignorance of the existence of inverse relationships.

 

[shibumiseeker]

I'm not so sure about that, I've been trying to sell a car for about 3/4 of it's current asking price as compared to searches within a 100 mile radius and thus far have gotten no interest with 4 ads in the paper, periodic updates on craigslist, and an ad here for several months. I'd keep it except that I'd need to start qualifying for fleet insurance rates (three current vehicles under 9 years old).

 

[LEaSH]

And knowing that so many supporters of that program choose to believe that CFK was a green success: you've seen how they disabled the klunkers right?
Well they drive the klunker around back of the dealership, drain the oil out of the crankcase (I'm sure they were careful not to spill), then add a caustic solution to crank case, and finally rev the holy heck out of the klunker until it seizes. This puts some gross stuff in the air.
As of a few weeks ago the burned out carcasses were sitting over at the 16th street stadium (Bush Field).