2009 August 29 | The Freedom Minute

Cash for Clunkers: Success or Failure?

As the “cash for clunkers” program came to a close this past week, government officials fell all over themselves declaring what a huge success the program has been. “This is one of the best economic news stories we’ve seen, and I’m proud we were able to give consumers a helping hand,” gushed Transportation Secretary Ray LaHood. The positive spin is certainly not surprising considering the federal government just spent $3 billion of your tax dollars (or more correctly, added $3 billion to the national debt which will have to be paid back, with interest, from future tax revenues). And when they pony up that kind of coin, we’re certainly not going to hear anything coming from Washington other than the sound of our elected officials patting themselves on the back. True, if you’re one of the roughly 700,000 who were able to take advantage of the government’s largess, it’s likely you consider the program a success as well. And who’s to blame you. It’s not often you can get the government to reallocate $4500 of someone else’s money to you so you can buy a new car.

But those of us who understand that there is no free lunch realize that when the government engages in this kind of economic sleight of hand, there is always something on the other side of the equation, hidden from view, which balances out all the “benefits”. Plus, we’ll have to deal with all those pesky unintended consequences which always occur. So let’s take a look at the entirety of the cash for clunkers program and see whether or not it really was a good deal for America.
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August 29th, 2009 Posted by freedomminute | Federal Government, Libertarian Philosophy | 6 comments

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The Freedom Minute is dedicated to a discussion of all things having to do with personal freedom and what I see as the steady encroachment by government on our personal rights. I take a decidedly libertarian point of view in my analysis of economics and personal freedoms. Note that I intentionally spell libertarian with a small "l" since I identify more with the overall philosophy than with any political party. If you're not familiar with libertarian philosophy or you think you know what it is, it might be useful to read the short primer which appears in the Philosophy section. In addition, you might want to grab a copy of Libertarianism: A Primer by David Boaz or Libertarianism in One Lesson by David Bergland, both excellent books on libertarian thought.

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