Jalopnik has these great pictures of what the epic failure Cash For Clunkers really looks like. This is Bush Stadium, in downtown Indianapolis. It was built in 1931, and hosted Negro League baseball. Now this historical landmark is a monument to waste.
And when the administration spoon fed us all the lie that this would stimulate the economy, which economy were they thinking? Check out this chart of the ‘winners’ and ‘losers’:
So a lot of people swapped Explorers and Saabs for Toyotas and Hyundais. Harold Meyerson is eating his (tinfoil) hat, but Don Boudreaux may be heartened:
The only reason for exporting is to import – and the success of a country’s exports is measured by the value of imports these exports fetch in exchange (either currently or in the future). That’s why all the talk of imports and trade deficits being drags on the economy is so misleading.
Consider; if trade was perfectly balanced, we would have just exchanged x for an equal value y. That’s not productive, it’s just moving money around. If we export x, but import 2y, than we’re ahead of the game. We’ve doubled our value, and presumably increased our subjective utilities. This is why the trade “deficit” with China is complete bunk.