More cash/Fewer Clunkers
Via the Von Mises blog: According to the consumer pricing index report released by the Bureau of Labor Statistics report, the price of used cars rose 3.4% in October thanks to the government’s cash-for-clunkers that spirited away a large portion of the used-car inventory. So, for those of us who chose not to buy a new “greener” car last month, and who want to purchase a dirty old used car, we have a smaller pool from which to select. Fewer goods results in increased demand and increased prices. Thanks a lot Big Government. You helped rich folks knock off a few grand on their brand new cars that cost tens of thousands of dollars and left those working on a much smaller budget potentially priced out of the used-car market, with no car to get to work or shuttle around kids, and left without a bailout to stand on.