Demand is up for used cars because people are poorer.  Supply is down because last year’s Cash for Clunkers program turned used cars into scrap.  The scrapped used car market was, according to George Will, “an important mechanism for redistributing wealth to low income persons”.   In the Boston Globe, Jeff Jacoby sums up the program as, “a deplorable exercise in budgetary wastefulness, asset destruction, environmental irrelevance, and economic idiocy”.

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