cash for clunkers = redistribution to auto dealers

For the most part, the $4,500 will be built into the price received by the auto dealers.

It's akin to a trade-in where the dealer is happy to give you more for your clunker, but not reduce the price on the new car as much as he would have otherwise.

On top of all this, many of those trading in their clunkers will be saddled with additional debt-- that will be forfeited or bailed out later. Brilliant...

Ethically and Constitutionally, it's unsupportable. Economically, it's damaging and inefficient. But politically, it's smart because, as usual, the benefits are relatively obvious and the costs are relatively subtle. It is a relatively crass arrangement and overtly stupid compared to most redistributive schemes. But offsetting this is the passion (and political support) of two special interest groups (those who buy and those who sell) who will be exceedingly grateful for Congress and Obama's largesse at taxpayer expense.