Cash for clunkers is, in the end, a clunker

"Cash for clunkers is best seen as a perfect example of why economic illiteracy - evident both in our politicians and even sometimes in noted economists - is so damaging to our economy now.

The clunkers program is the latest example of French economist Frederic Bastiat's warning to always analyze secondary, unseen effects as well as the primary effects of any policy; that is to say, to fully reflect all costs, as well as benefits of a program, when determining its efficacy."

(snip)

"The clunkers program certainly helps auto manufacturers, sellers and participating buyers, today; this is what's seen. But it hurts used-car buyers, who now face constricted supply, along with used-car dealers, repair shops, parts suppliers, mechanics and a myriad number of businesses in other industries who face lower sales revenues."