Demand economics is Keynesian in theory. And it eventually teaches basic economics lessons that left-leaning politicians ought to learn, but never do. If it worked for cars, it would be a bonanza for the rest of the consumer economy. It would then work for houses, refrigerators, what-not.
But it didn’t work at all.
The automobile cash for clunkers program was slated to fail for a multitude of reasons. I mentioned them early on in my blogs.
The misconceived plan had disrupted the new car, the used car, and the scrap metal markets. As predicted here, it never added to the net amount of economic outlay. Plus, it cost taxpayers billions.
Furthermore, it set a bad example of government meddling, that accomplished lots of governmental mischief as a form of state capitalism. ( See the Earl J Weinreb NewsHole® comments.)
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