This came from my mate Angry Exile.
I posted on this scheme a while ago when Gillard proposed it. It is apparently also in vogue in England. It is said that a lie makes its way around the world, while the truth is putting its shoes on and it looks like a dumb idea does the same thing. Here is the Top Gear boys take on it:
They make a great point about the waste of energy in an attempt to save fuel.
In many ways the theory of ‘Cash for clunkers,’ is similar to the ‘broken window’ theory in which it is argued that vandalism is good. This assumes that the destruction of property is synonymous with economic revival, (thus wars are good for the economy) by causing the victims to spend money they might have been otherwise too selfish to. The fact that the victims may have had their own aspirations as to what to do with the money they have been forced to spend to get back where they started from is beside the point.
While those who accept this offer are not coerced into doing so the fact remains that the government is encouraging the destruction of productive units at a direct cost to the taxpayers and indebtedness to those who put their feet on Julia’s sticky paper.