Help Some, Hurt Others, Used-Car Dealers Feeling Pain From 'Cash For Clunkers'

Redistributive government programs help some at the expense of others. Read the Wall St. Journal article, "Used-Car Dealers Feel 'Clunkers' Pinch" by Emily Maltby.

Michael Darrow, an independent used-car dealer, is still feeling pain from "Cash for Clunkers."

During the summer, he was shut out of the popular initiative, which allowed only new-car franchises to participate. Now, the inventory he normally buys at auction is sharply limited, a direct result of Clunkers sending close to 700,000 gas guzzlers to the junkyard. That's driven wholesale prices to new highs....

The problem with government 'do good' programs is that government does not know who they will hurt beforehand in the process.