Cash for clunkers, a win-win-win? Think again

In a blustering press release touting the success of cash-for-clunkers, Transportation Secretary Ray LaHood commented that the program was "a win for the economy, a win for the environment, and a win for American consumers."

We interrupt this fantasy for a brief return to Planet Earth. Yes, cash-for-clunkers was a big win for certain segments of the economy: car dealerships and people who build cars (in Asia mostly, but hey). It was a big loss for mechanics, who lobbied heavily against the bill but were outmuscled by the car dealers. And in the long run, it really may have just frontloaded car sales.