Minimum wage laws make it so that very few people whose labor is worth less than the set price will have jobs, right? Right. The poor suffer. It’s not a complicated argument.
Similarly, what happens when lots of low cost cars are purchased by the government and then destroyed? The supply is diminished, demand remains the same (or rises), and people, the poorer among us, who need cheap cars are hurt with less to choose from and (often therefore) higher prices. The government incentivized this by trading cash for clunkers. Who would turn in these clunkers? People who either have jobs and money and can afford to buy a new car or people who are irresponsible and can’t afford it but buy on credit anyway. Either way, the government subsidizes wealthy or foolish. Sound familiar? It’s just like nearly everything the government and its regulation does. The sting of unintended consequences.
We can only hope that people will see the same thing coming with nationalized health care.