Thursday, July 30, 2009

This is classic government in action. The feds want to boost the auto industry. So they create Cash for Clunkers. It's free money to the car buyer, right? And not surprisingly, it's been wildly successful. The government reaction to success is entirely predictable: CANCEL THE PROGRAM.
The White House said Thursday it was reviewing what has turned out to be a wildly popular "cash for clunkers" program amid concerns the $1 billion budget for rebates for new auto purchases may have been exhausted in only a week.
So the car dealers invest in advertising to move cars using government money, they succeed in creating demand, and the government pulls the rug out because they can't afford to keep the promise. And the same people want to run healthcare.

When will these idiots learn to stop messing with free markets? All they do is muck things up.

Update: They're not done messing around. The House managed to find another $2 billion under the cushions on their chairs. Where do they think all this money comes from?


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