I think it's acting stupidly (to use the words of our current President in another context). Dumb. Dumb. Dumb. Idiotic. Maddening. Click here.
Update 8/4/09 - John Stossel makes the obvious point:
Another unintended consequence of the Cash for Clunkers program is that poor people who can’t afford new cars – or expensive used cars -- will be crushed along with all those clunkers. If you can only afford $500 - $1,000 for a car, you’ll find many of these vehicles are now unavailable. They have been sent to the junk yard thanks to this program.
The Blogger News Network points out that junk yards that demolish the clunkers aren’t allowed to pull engines and other parts before they’re crushed, making parts for older cars harder and more expensive to get.
“Cash for Clunkers” benefits New Car Dealerships primarily, by increasing sales, and the upper and middle class possibly, by giving them an extra few hundred dollars. But it’s not good news at all for lower income people. We can’t afford a new car, and we won’t be able to continue fixing our older cars at an affordable price, if we can find the parts at all. This isn’t good.
In fact, the Obama administration knew they were taking away our options to keep our vehicles running. They want our cars off the road, and they really don’t care how it affects those of us with very little money. The little guy isn’t a priority. Obama pretended to champion the little guy in order to get their vote, but it’s becoming more and more obvious that special interests - those that have received the bailout money and those industries he is choosing to socialize - are what he really champions. Politics as usual.