Would hate to see failure

Representative Gary Peters and other elected officials claim the “cash for clunkers” program has been a success. At a cost of $3 billion, the federal government destroyed at least $2 billion of wealth by scrapping working vehicles.

At the same time, used car prices will increase because the supply decreased. This hurts low-income families who are more likely to purchase used rather than new. In addition, charities which rely on used car donations to help the poor were hurt as those vehicles were diverted to the scrap heap. Also, consumers who rely on used car parts to keep their vehicles running were hurt for the same reason.

Supporters claim the program helped autoworkers by generating new car sales and they're right. Like most redistribution programs, there are winners. Unfortunately, it comes at other people’s expense.

If a program that destroys wealth and hurts lower-income families is considered a success, I sure would hate to see what qualifies as a failure.

[Letter to the Editor - Farmington Observer. Submitted 08/24/2009.]