Saturday, August 1, 2009

The lesson of cash for clunkers?

"The federal government suspended its "cash for clunkers" program at midnight Thursday after less than four days in business, telling Congress that the plan would burn through its $950 million budget for new-car purchases."

http://www.miamiherald.com/news/top-stories/story/1165059.html

The most effective and successful immediate stimulus so far was not part of the stimulus bill, and did not set up a new government bureaucracy. Rather, "cash for clunkers" simply returns big chunks of money to taxpayers on the condition that they spend it immediately. Will anyone in Washington learn this lesson?

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