Cash for Clunkers: Yet Another Way the U.S. Government Increased the Cost of Living https://mises.org/wire/cash-clunkers-yet-another-way-government-increased-cost-living Obama’s Car Allowance Rebate System (CARS), more popularly known as “Cash for Clunkers,” is now a decade old. Not surprisingly, this interventionist program was a massive policy failure for several very predictable reasons. The Cash for Clunkers program destroyed valuable resources, misallocated other resources, and made life difficult for cash-strapped drivers needing a low-priced car—not to mention mechanics and salvage yard operators who rely on clunkers for their livelihood. It, did nothing to rejuvenate the new car manufacturing industry. Before the next round of intervention we would be wise to reflect on Bastiat and learn the harsh lesson of Cash for Clunkers.