Thursday, October 1, 2009
This chart is a great way to illustrate how temporary tax breaks or government handouts can't do anything to change the underlying reality. The Cash for Clunkers program boosted auto sales for awhile, but as soon as the program expired, sales reverted to trend. Tax rebates do the same thing. Since they don't change anyone's incentives, they only boost things temporarily.
How long will it take for the political class to learn this simple lesson? Better yet, how long will it take taxpayers to figure out that these types of programs are just government theft designed to buy votes?
Posted by Scott Grannis at 4:56 PM