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Cash for Clunkers hurt retail sales?


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When you coerce spending in one area where people normally weren't going to spend, it takes away from areas where they were going to spend. If you have 100 dollars to spend this week and you going to spend 50 on food and 50 on a video game, but the government convinces you or bribes you to spend all 100 on food, the video game producer is going to have lower sales. Why can't Washington understand this simple concept?:laugh3::dozey:

 

http://www.marketwatch.com/story/us-stock-market-disheartened-by-weak-spending-2009-08-13

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