The Illegitimate President

It’s funny to see that neither Obama nor Congress has learned from 159 years of free market economics. And by funny I mean they are morons.

‘Cash-for-Clunkers’ Bill Passes in Bid To Revive Car Sales
Dealers, unions, trade groups and automakers have been lobbying for months for the legislation in hopes that it would stop the streak of dismal U.S. auto sales.

“The simple fact is that we need to get Americans into car showrooms, and this is the bill that will do it,” Rep. Candice S. Miller (R-Mich.), a co-sponsor of the legislation, said in a statement.

The auto sales program, which offers vouchers of up to $4,5000, now moves to the White House for the president’s signature. President Obama has repeatedly encouraged Congress to pass a so-called cash-for-clunkers bill.

That Which is Seen, and That Which is Not Seen
I. THE BROKEN WINDOW

But if, on the other hand, you come to the conclusion, as is too often the case, that it is a good thing to [tax everyone to help some people buy new cars], that it causes money to circulate, and that the encouragement of industry in general will be the result of it, you will oblige me to call out, “Stop there! your theory is confined to that which is seen; it takes no account of that which is not seen.”

It is not seen that as our shopkeeper has spent [$106 billion] upon one thing, he cannot spend them upon another. It is not seen that if he had not had a window to replace, he would, perhaps, have replaced his old shoes, or added another book to his library. In short, he would have employed his [$106 billion] in some way, which this [stimulus] has prevented.

Let us take a view of industry in general, as affected by this circumstance. The [clunker being traded in]‘the [auto manufacturer]‘s trade is encouraged to the amount of [$106 billion]; this is that which is seen. If the [clunker] had not been [cashed-in], the shoemaker’s trade (or some other) would have been encouraged to the amount of [$106 billion]; this is that which is not seen.

And if that which is not seen is taken into consideration, because it is a negative fact, as well as that which is seen, because it is a positive fact, it will be understood that neither industry in general, nor the sum total of national labour, is affected, whether [auto manufacturers are stimulated] or not.

So not only is Congress taking $106 billion from the populace at large to give to the auto industry via people who can (possibly) afford new cars, but they are also taking who knows how many perfectly good used cars off the market. So they’ll simultaneously destroy the used-car market while  sucking $106 billion from the rest of the economy, in order to prop up the auto industry for a few more months.

It’s just too bad we have so many freaking morons in government, and that we’re all freaking doomed as a result!  But hey, at least we get to be a warning to future generations?