The Cash for Clunkers program has been hailed as the savior for the Auto Industry. However, what will be it's impact on Inflation, Economy & the Auto Industry?
John Crudele of NY Post explores this impact in his article and points out that this incentive/subsidy amount will actually be accounted by the US Bureau of Labor Statistics in the CPI as if the prices of cars fell by that amount. This will create an artificially low Inflation rate. This deflation is actually being paid for by the people as it is coming out of tax payers money!
Read this full article here.
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