Tuesday, August 04, 2009

Clunkernomics II -- An Auto Price Hike for Poor People

People are waking up.

John Stossel of ABC News, reports on his blog:
Another unintended consequence of the Cash for Clunkers program is that poor people who can’t afford new cars – or expensive used cars -- will be crushed along with all those clunkers. If you can only afford $500 - $1,000 for a car, you’ll find many of these vehicles are now unavailable. They have been sent to the junk yard thanks to this program.

The Blogger News Network points out that junk yards that demolish the clunkers aren’t allowed to pull engines and other parts before they’re crushed, making parts for older cars harder and more expensive to get.

The only disagreement I might have with Mr. Stossel is the word "unintended." It would not surprise me to learn that there is a motive behind this that poor people will not like.

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