Germany: Paying people to buy cars is absurd

By The Week Staff

last updated 8 January 2015

Bernward Janzing

die tageszeitung

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The program is so popular that the $2 billion set aside is running out. And it’s increasingly clear that the whole idea is “crazy.” The state is running up massive debts without even necessarily benefiting German businesses: Small Asian cars are selling better than BMWs. The subsidy is billed as “environmental,” because newer cars emit less carbon dioxide, but that’s ridiculous. We’d be much better off subsidizing public transportation. And though it’s popular now, it’s unlikely to remain so. Encouraging people to splurge on new cars could easily lead to a rash of personal bankruptcies.

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