This WSJ piece argues that the only thing accomplished by the "Cash for Clunkers" program is to speed up the natural rate of trading in old for new, rathe than actually prompting otherwise uncontemplated purchases. What will happen to the automobile market when consumers get off this financial methamphetamine? Can you say "Crash for Clunkers"?
This WSJ op-ed is also critical of the program. A snippet:
On the other hand, this is crackpot economics. The subsidy won’t add to net national wealth, since it merely transfers money to one taxpayer’s pocket from someone else’s, and merely pays that taxpayer to destroy a perfectly serviceable asset in return for something he might have bought anyway. By this logic, everyone should burn the sofa and dining room set and refurnish the homestead every couple of years.