Saturday, August 1, 2009

Democrats' Ignorance of Basic Economics

You have to laugh listening to top Democrats such as Obama and Pelosi  insist the "Cash for Clunkers" program was a big success that exceeded expectations -- even though it ran out of money and now needs emergency financing. Democrats are actually amazed that a program that essentially involves giving people money proved so popular. If you have an older car that meets the guidelines -- especially one that is a low value trade-in -- and have the resources and any inclination to think about getting a new one, you'd have to be crazy to pass up the opportunity to have the government turn your practically worthless trade-in into 4500 dollars.

I wonder what Democrats think would happen if we put a new program into place that subsidized the purchase of high definition televisions by giving people  a 200 dollar credit if they turned in a non-HD model that was more than five years old? Would they be surprised if the program budget was exceeded? How about if we set up a program to trade old worn-out 5 dollar bills for shiny new 10 dollar ones?

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