Canada should resist the temptation to attribute the demolition

Judged on its core objectives the United States government "cash for Clunkers" program was completely successful.
He gave a lot of money for free. But it's the kind of success that Ottawa should be avoided.

Cash Clunkers - its official name is auto discount system of quotas - which offers up to $ 4,500 (U.S.) in government bonds to buy a new car, if you have more fuel efficient trade-in. It aims to stimulate sales of older vehicles programs imitated in Europe.

At the last count, months-long program has facilitated more than 625,000 new car purchases. The uptick in demand was cited as a reason for moving planned new factories General Motors Co, in Ingersoll, Ont., And Lordstown, Ohio. It is strange that the response to the program seems to surprise the politicians. The first $ 1 billion loss in less than a week. Congress, compelled to add that extra $ 2 billion, reported in a way that goes to a day of work. Last night, but I ran dry. It turns out that free money is very popular.

All of them are the Canadian Automobile Dealers Association challenging a similar program for Canada.

The federal government already offers small-scale version, called Rest Your Ride, which offers $ 300 in cash or a bike without a discount car-sharing membership.
Yet with the objectives of environmental policy, and car dealers in Canada are probably right in saying that there was a modest incentives are "ineffective" in the new sales management. But what is obtained by multiplying by ten times the money?

Despite the success in cash Clunkers seems so far to the sale or a new round is likely to be only temporary. Government incentives of this type tend to depress the existing demand rather than create new interest. The race to get free money, are creating a vacuum sales tomorrow, along with other unintended consequences.

In France, Christian Streiff, Chairman of PSA Peugeot Citroën, incentive programs described as "dangerous instrument" as an inevitable decline in sales when it expires. In Germany, the furniture manufacturers have complained that the incentives auto cannibalized other important purchases, no net gain for the economy.
Italy has a number of initiatives run-commerce, dating back decades, it tends to become a habit. Call to return the money for Clunkers is very likely that, once the sensation of headache in the coming months.

Moreover, because most of our production is exported to USA, Canada, are already enjoying the immediate benefits of the efforts of the United States - including transfer to the new Ingersoll - at no cost to taxpayers. Any Canadian program would be minimal, even in the short term. Give up, would prevent cars from government incentives to become a permanent dependence on consumers. And doing nothing is the best deal in progress.