Hey, remember Cash for Clunkers?
We sure do, we wrote about it frequently and predicted negative unintended consequences:
- We Are All Car Buyers Now
- Cash for Clunkers Driving Up Prices
- Cash For Clunkers Rear Ends Rhode Islanders
- “I Didn’t Buy A Clunker, But I’m Paying Anyway”
- My Cash-for-Clunkers Bill = $183
Seth Mandel at Commentary Magazine has an update, Speaking of Failed Big-Government Programs…:
The ongoing debacle that is the administration’s rollout of ObamaCare has reignited debate about technocracy and big-government liberalism. But Democrats who worry that their mode of coercive politics will be discredited by ObamaCare should be thankful it took this long.
A very well-timed reminder of this arrived yesterday from the Brookings Institution. Scholars at the left-leaning think tank analyzed the so-called “Cash for Clunkers” program, the 2009 “stimulus” program intended to get cleaner cars on the road by providing cash vouchers for those who trade in older gas guzzlers and buy newer, more efficient cars. The administration patted itself on the back when the program ran out of money, apparently pleasantly surprised that people took free money during an economic downturn. But Brookings confirms that this was, of course, a terrible program. Here are their major findings:
- The $2.85 billion program provided a short-term boost in vehicle sales, but the small increase in employment came at a far higher implied cost per job created ($1.4 million) than other fiscal stimulus programs, such as increasing unemployment aid, reducing employers’ and employees’ payroll taxes, or allowing the expensing of investment costs.
- Total emissions reduction was not substantial because only about half a percent of all vehicles in the United States were the new, more energy-efficient CARS vehicles.
- The program resulted in a small gasoline reduction equivalent only to about 2 to 8 days’ worth of current usage.
- In terms of distributional effects, compared to households that purchased a new or used vehicle in 2009 without a voucher, CARS program participants had a higher before-tax income, were older, more likely to be white, more likely to own a home, and more likely to have a high-school and a college degree.
That last part just seems like pouring salt in the left’s wounds. Not only was the program a massive failure, but it was also, by the way, a taxpayer-funded subsidy for white homeowners–just in case the left reached for an “inequality” or race-based argument in a desperate attempt to shut down the debate on the program.
We have seen the future, and it is The Affordable Clunkcare Act.
Or Clunkcare for short.
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