Originally Posted by
si_the_geek
The same kind of scheme has been done in various parts of Europe (without the mpg limitation, which is virtually guaranteed to be better in modern cars over here), and has worked well - economically at least.
The car industry has increased sales compared to the period before (thus more tax), so they and the dealers don't need to make staff redundant (who keep paying tax rather than going on benefits), scrappage merchants continue to have work coming in (ditto), etc
I'm not sure what happens to the old cars tho, which could well be a downside.