Cash for Clunkers is a Clunker

The Nashua Telegraph doesn't like what the federal government's Cash for Clunkers program has become:

But one thing seems pretty clear even now: that the overly generous guidelines developed by the U.S. Department of Transportation for this program will do little to reduce the national consumption of gasoline or to encourage Americans to purchase smaller, more fuel-efficient vehicles.

What else can you conclude from a program that rewards the owner of a light truck or SUV with a $3,500 rebate for purchasing the exact same model with a miniscule improvement of 2 mpg? (more)

The program was sold as a way to both boost the auto industry by boosting demand, and a way to improve fuel economy by getting people to buy more fuel efficient cars. Congress turned into a mechanism to take money from taxpayers, and our grandchildren, and take credit for their largesse to car dealers and consumers.

Such artificial interference always has benefits, to those receiving government favor, but it rarely outweighs the overall costs.