Cash for Clunkers and Higher Prices

By now, you'd have to be in a coma not to have heard about the "Cash for Clunkers" program. The G is spending our tax dollars to give people an incentive to trade in older, less efficient vehicles and purchase new. So, what do you think happens to prices with this demand stimulus. Not surprisingly, it looks like they are going up. So, if you are in the market for a new car, you get to pay for the program twice - once through your tax dollars and once through a higher price.