Monday, September 13, 2010

Update on "cash for clunkers"

Apparently, the National Bureau for Economic Research has done a study to see how many additional vehicles were bought due to the "cash for clunkers" program. 

Answer:  Zero.  About five billion dollars down the toilet to generate exactly zero jobs for anyone in the auto industry, and 700,000 fewer family cars on the used car market for those who need them.  Just like classical economics and the Austrians would have--and did--tell you.  They also would tell you, and correctly, that the same kind of person who would default on his home mortgage would do the same a second time, and on his new "cash for clunkers" car, and....

H/T SayAnythingBlog.

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