If each car was roughly worth $3,000 with 700,000 vehicles totals $2.1 billion in wealth was destroyed. It is as if a hurricane came through and completely destroyed 700,000 vehicles.

This limits the supply of used cars available on the market, forcing up existing used car prices. It also limits the supply of parts available on the market, forcing up existing part prices. This mostly affects lower-income drivers will now have to pay more for purchasing a used vehicle and maintaining their used vehicles.

It took roughly 1,100 more federal bureaucrats to manage and execute this program, which means 1,100 fewer workers in the private sector.

All this effort to destroy used cars was paid for by $3 billion authorized through Congress using taxpayer money. This was an indirect transfer of wealth from the average middle class taxpaying citizen to the more affluent, able to afford a new car during a recession, citizens. This program financially punishes the middle class taxpayer who paid for this program through their taxes and will have to pay more to purchase a used car and maintain a used car.

Roughly $2.1 billion in wealth was destroyed while another $3 billion of wealth was redistributed from the middle class to the more affluent.

Cato.org – Cash for Clunkers: Dumbest Program Ever? – http://joeyconway.com/cqnhea

Cato.org – There’s No End to Replacing Clunkers – http://joeyconway.com/2q6yv5

Washington Times – Obama’s protectionist policies hurting low-income Americans – http://joeyconway.com/zmtet2

The U.S., as of Sept 2009, has sold $1.517 trillion in debt this year compared with $585 over the same period last year. Barclays forecasts the government will sell $2.1 trillion in debt for 2009 and $2.5 trillion for 2010 compared with $892 billion for 2008.

Congress determines the limit to the amount of debt the Department of Treasury can issue.  The American Recovery and Reinvestment Act of 2009 signed into law on Feb 17 2009 set the limit to $12.104 trillion.  The Treasury currently forecasts it will hit this limit by Nov 2009 and started asking Congress to increase the limit again in Aug 2009, only 7 months after it was increased.

It is obvious the national debt is setting record highs.  This national debt is a promise of repayment to the holders and is backed by the government, which represents the taxpayers.  It is an ever increasing burden for all taxpayers.

US Treasury Debt History – http://joeyconway.com/brq96x

Bloomberg – Negative Bond Returns Converge With Mortgage Miracle - http://joeyconway.com/c85t3z

For an overall comprehensive list of all the bailout programs by Congress, Treasury and the Fed: http://joeyconway.com/73da87

List of 650 banks, so far, which have received bailout money: http://joeyconway.com/7rz83r

List of 94 failed banks, so far, which the FDIC has taken over:  http://joeyconway.com/rvtaxw