I guess I must be on the wrong page on this "clunker" stuff...
A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline. 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 per 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 $350 million dollars at $75 per bbl.
So, we all just spent $3 billion...to save $350 million.
Hmmmmmmmmm. How good a deal was that?
But, I'm thinking that they’ll probably do a great job with health care, though!
* - I got this in an e-mail. Origin unknown
1 comments:
Yes, you are correct Cash for clunkers cost a lot of money for a little return. It also took a lot of money from auto repair shops and charities that rely on the revenue from car donation.
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