As I drove by a line of car dealerships yesterday afternoon, a particular display caught my eye. Car dealerships, of course, are pretty good at this, but instead of the latest model on a high stand or an inflatable inflated icon, today’s display was a showcase of refuse arrayed along the freeway. Clunkers, traded in and replaced, and indeed all bound to be crushed, lined the edge of a field, each with the “Clunker” label eblazoned accross the windshield like this year’s hottest selling point.

The view from the road
So I couldn’t resist stopping to take some shots of these much talked-about outmoded modes of transportation, that some lucky drivers had both wisely and kindly unloaded. And more disturbingly, it got me thinking about the fact that every car in that field was functional mechanically, but would be intentionaly broken and destroyed as a result of a federal mandate.

Clunkers on parade: a last hurrah
Economically, destroying a tool that could otherwise still be useful can hardly be expected to add to the equation or spur things along. Of couse, the Cash for Clunkers pogram is broader and more complicated than that, but it was sold as a stimulus program, and if that’s the primary purpose, why not let the dealers repair and resell these cars? After all, that’s the business they’re in, and they’d still be free to destroy them if that avenue made more sense.
And allowing resale would benefit less afluent consumers who make up the market for used cars. The fact that this run of destruction will shrink the supply of used cars and drive up costs for low income buyers is one of many troubling reasons that leads the Cato Institute to wonder aloud on their blog whether Cash for Clunkers could in fact be the dumbest program ever (h/t to Ed Morrissey).

This minivan will not be driving a low income family's childen to soccer practice.
And as long as we’re talking about the poor being hardest hit, it’s worth wondering who the beneficiaries are. After all, the left is frequestly telling us that it’s the rich ans well-equipped who find the loopholes and get the best deals from the government. Well, anecdotally, there were definitely some cars in the field that looked newer or nicer than mine (which made me a tad nervous parking there) and which may well have been traded in by someone not so much in need as eager to play the mpg numbers game and hop on the gravy train. Anecdotes aside though, the fact is that the system only pays rebates to new ca buyers and saps the supply fo those buying used.

Mercedes an BMW were not rare brands in Clunker field.

Of course, this was not just a showing of expensive or late-model vehicles–there were plenty of legitimate junkers in the mix. But this pesents its own challenge: the truly old an worn among them were doubtless headed to the crusher soon anyway. Do we really have an interest in paying the owners to scap these cars now rather than next week or next month? Will that provide a needed jumpstart to big ticket purchasing?

One of my favorites
And again, this was supposed to be an urgent stimulus program with whatever environmental benefits as an added bonus. But do temporary rebates on trade-ins really constitute a game-changer? There may be a few people who were able to buy new cars with the government rebate who otherwise might have gone with a used car, and let’s assume for the sake of argument that that’s a good thing in and of itself, but you’re not really creating a new market; you’re creating a bum rush. You’re not growing demand; you’re just front-loading it.
But what really sticks in my side isn’t just the ineffectiveness of the program at achieving its stated goal, or even it’s secondary goal (though I haven’t addressed environmental impact here, even environmentalists have been lukewarm about its effectiveness in that arena). No, what gets me is the idea of mandated waste. As condervatives, we frequently worry about waste fraud and abuse in government, but usually we’re thinking of beaurocratic bungling, whereas here, it’s more of a stated policy goal.
Allahpundit says that’s precisely what makes it “a sweet, sweet metaphor for Obamanomics”. And the shortsightedness, the desire to create the rush rather than change the realities, the haphazard nature of it’s planning and application, and the general backwardness of the approach do promise to be spot-on teaching tools. But I still wonder if the lessons of cash for clunkers could be lost on Americans who have only a casual acqaintance with the idea.
Take heart, though, because whether or not it’s the idea of removing value from the economy or the effect of driving up used car prices, something is giving the program a bad name. A recent poll reports that only 35% of adults say the idea was good for the economy, another 27% say the multi-billion dollar effort had no impact, and 23% say it was outright harmful.
My guess is that this has more to do with the stories of backlogs and the limits on who can cash in than it has to do with careful analysis, but for better or for worse, you don’t win political arguments on the basis of sound macroeconomic theory alone. You need narratives and anecdotes. I hope my photos of Clunker Field can help.
