Cash for Clunkers update

Two updates, actually, from Cafe Hayek

First, the program is operating with typical government efficiency: a grand total of 2% of payments for the clunkers have been made to date.  Some dealerships are withdrawing their claims out of impatience.  As Cafe Hayek’s Russ Roberts notes, “TWO PERCENT. Very impressive. Ah, the efficiencies of government. Health care reform joke goes here.”

Second, the program is hurting charities which accept car donations.  Donations to the National Kidney Foundation, for example, have dropped 10-15%, a notable decrease for an organization that gets about 19% of its revenues from car contributions.  But never fear, “White House spokeswoman Jen Psaki says the program, which got a $2 billion boost Friday, will have a “negligible” effect on charities.” 

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