09 August 2008

subsidize the bad

http://freakonomics.blogs.nytimes.com/2008/08/08/no-cash-for-clunkers/

This comparison is amusing. Of all the remarks however the most basic is the last paragraph. If we want less of something, "punish" it through taxes or fees, don't subsidize it by paying extra for something of little value. We've done the same thing with food prices (sugar at 3x market price, yes please). What a strange country.

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