Clunker Math
Cash For Clunkers - A Huge Success!
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A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons of gasoline a year .
A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.
So, the average clunker transaction will reduce US gasoline consumption by 320 gallons per year.
They claim 700,000 vehicles – so that’s 224 million gallons / year.
That equates to a bit over 5 million barrels of oil.
5 million barrels of oil is about ¼ of one day’s US consumption.
And, 5 million barrels of oil costs about $375 million dollars at $75/bbl.
Let’s see … we spent $3 Billion to save $375 Million a year (that's a negative factor of 8 to 1).
And how many new loans will go into default, even though the people had a drivable vehicle?
Is there any wonder why our government is going broke? You can’t fix stupid!
(And on 09-09-09 the president repeated his claim of being able to fix Health Care at NO additional cost - SURE!)
Dave