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.

Peter G. Klein is a Research Fellow, Associate Editor of The Independent Review, and Member of the Board of Advisors of the Center on Culture and Civil Society at the Independent Institute.
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