Cash for ClunkersIt seems to me that the cash for clunkers program proves conclusively that nobody in congress nor the White House has the faintest understanding of Henry Hazlett’s one lesson in economics. We’re literally breaking windows hoping to get the economy running again. More from Belmont Club and Kim Crawford. UPDATE: Somebody else finally gets it too. Tags: Belmont Club, Cash For Clunkers |
||

One Response to “Cash for Clunkers”
August 4th, 2009 at 10:58 am
right before declaring my major in economics during college, there was a meet and greet with many professors in the department. amongst them, several nobel prize winners, and one professor that had atually just been awarded the prize. I dont remember names at this point, though i could look them up. one of them asked me if i had any thoughts on the economy, which was in the midst of the dot com downfall. I told him that i had the perfect solution to stimulate the economy. Close all the homeless shelters in NYC. remembering the broken window story, i proceeded to tell him the most ridiculous story. Close the homeless shelters, which will lead to more squeegie men at the tunnels. More squeegie men, lead to cleaner windshields. cleaner windshields leads to less accidents. less accidents lead to lower insurance rates. lower insurance rates makes cars more affordable. more affordable ownership of cars, leads to more purchasing of new cars. more new car demand, leads to more new car production, factory jobs, dealer jobs, mechanics, etc., and so on. and there you have it. economy stimulated. The nobel prize winner looked at me and said, and i’ll never forget, “son, i think you should look into another major.” really though, was I that wrong?
Leave a Reply