Is the government right subsidizing new car purchases?

Oh my goodness, the democrats say that the “Cash for Clunkers” auto purchase program has been so successful demonstrated by the fact the program has been suspended because it was about to run out of money.

What makes this so interesting is not that the government is giving away money, but that people really do want to buy new cars. The problem – up to this point – has been the high prices of new cars. Also is the fact that I’m helping somebody else buy a car. What do I get out of this? Oops, I probably shouldn’t ask that. That may be considered un-American.

Anyway, the real success about this program is the proof that people are willing to buy new cars at the right price. The auto makers – and the unions – need to realize that their products will sell when the buying public feels they are getting a fair deal. Macroeconomics has the basic graph that demonstrates that products will sell at the intersection of supply and demand. When outside forces get involved, the intersection goes haywire.

So all of this proves that there is money out there waiting to be spent. Purchasers are looking for value. This should be a lesson not only for automakers, but for all retailers. Fast food restaurants probably understand this better than any.

The government should not expand the "Cash for Clunkers" because it does more to upset the free market than help. And I didn't get a car out of it either.