Bastiat on “Cash for Clunkers”
My old friend John Chapman channels Bastiat in a new op-ed:
A lesson from the parable is that government spending cannot create wealth; it can at best redistribute it, often accompanied by waste. 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.