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.

Cash for Clunkers? Not So Much

The "Cash for Clunkers" program -- inspired by Government Motors and passed into law by Congress -- may turn out to be a lot less of a windfall for everyday folks than promised.

Over at Planet Gore, Edward John Craig posts an e-mail from a reader, which we reprint, that notes:

The hapless Democrats believe their “cash for clunkers” bill, promoted to help the environment, will save the auto industry, too. Somehow a $3,500 voucher will entice me to trade in my van, which is paid for, to assume a $20,000 debt on a new vehicle which will get as little as 2 mpg better mileage. The $3,500 voucher will be nullified by the depreciation on my trade-in, which will be practically worthless since the bill requires the dealer to scrap it. Also, this wasteful scrapping of a serviceable vehicle is being pushed by Democrats who also complain we use too much of the world’s resources. And where did the Democrats get the idea for this bill? From GM, a company suffering from too many of its ideas already.

Once again the Law of Unintended Consequences bites the Progressive redistributionists in the behind.