Robert Murphy, author of The Politically Incorrect Guide to Capitalism, writes in Townhall on the cash-for-clunkers scheme:

Every dollar the government spends comes from either taxes, borrowing, or inflation. In all cases, the citizens are ultimately paying for it. You don’t make the country wealthier by taking money from some citizens and giving it to others so that they can buy a car that’s too expensive for their budget…

It is because of government meddling that this recession has been so long and so painful. It is no coincidence that the two periods of the biggest power grabs in Washington—the 1930s and right now—coincided with the worst economies in U.S. history. Having the feds borrow a few more billion, to pay people to buy cars, does nothing to alleviate the underlying problems. The economy can’t return to normal when every business decision needs to consider what politicians might announce next week…

The cash-for-clunkers plan is a giant waste of tax dollars. It further distorts the economy, making industry even more vulnerable to the changing whims of D.C. politicians. To add insult to injury, the alleged environmental benefits are minimal. The only virtue of the program is that it steers billions of dollars into the pockets of those with friends in high places.