Cash for Clunkers Success

[Cannon Shell]

http://www.oaktreepeak.com/Blog/2009...t_created.html

The myth of government created jobs is the twin to the myth of jobs saved by protectionist tariffs. Put a 20% tariff on imported steel in an effort to protect the jobs of U.S. steel workers and what is the result? The cost of everything made from steel is higher than it would otherwise be - a hidden tax on consumers. A new oven that might have cost $300 may now cost $360. The consumer has $60 less to spend on something else. Perhaps they would have dined at a neighborhood restaurant but now have less disposable income to do so. Perhaps the restaurant will reduce the size of its workforce because business is slow. Capital that is spent by consumers to maintain the jobs of the steelworkers has not magically appeared; it has been removed from other sectors of the economy. Once again, the jobs that are lost are spread out over the country and are impossible to identify, while politicians can easily point to the steel industry and say "look, we saved these jobs". They are simply robbing Peter to pay Paul, but Peter is hidden away in the cellar and Paul just bought a new SUV.

Nice work, if you can get it