Alan Binder claims credit for Cash for Clunkers.
Why do I complain about Macro Economists? Well, let me look at Alan Binder's research page, and I should find that he has done research on the future utility of automobiles. If not, then what in the hell does he know about the auto industry.
Let me see, from Wiki, he has all the usual credential for Macroeconomics. Graduate from Princton, academic manager, banking studies, and the rest. Odd, he has no published papers about technology, the automobile or transportation. Jim Hamilton as done more work in this area, and he is critical of the program. Jim's web page indicates quite a bit of work in on the issues of oil shocks and automotive technology.
That is why Posner, I, and may others complain about macro economists, they propose things for which they are not experts. Because they study bankers they think themselves exerts in everything.
So here we are in the middle of a oil and transportation shock. And here goes Binder claiming that government should subsidize consumer investment in future auto technology with know clue about whether that investment pays off.
Politicians need to get a clue about who they take advice from. I suspect that in a few months these consumers will be stuck with lemons, and they should all send their bill to Princeton for generating economic hubris.
Update:
I should point out the Jim Hamilton said the replacement of our old cars would have happened anyway, so by my definition cash for clunkers is a stimulus.
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