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Wall Street Breakfast: Must-Know News [View article]
Every time the govt gives a rebate on something, all it does it drive up the final price to the consumer and provide higher margins to the supply chain. Examples are solar water heaters in the 80's (and probably now) and the current DTV converter boxes. These DTV are $20 boxes to make & sell (compare to other items like WiFi routers). The govt provides $40 rebates and the shelf price becomes $50.
RE clunkers-
many states have lieu taxes which cost more the newer the car is. If they want to stimulate new car sales, charge more to register older cars, like Japan.