The Financial Times’ Lex column ^[1] makes a good point today about the “cash for clunkers” bill making its way through the U.S. Congress ^[2]: Not only is the bill unsound environmentally ^[3], it’s also bad for the poor. Here’s Lex’s take:

The new plan is also economically regressive. By requiring cars to be scrapped, vehicles typically used by working poor in a country with patchy public transportation would vanish or rise in price. Important spare parts could not be recycled, making repairs of old vehicles already owned more expensive for the poor.