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/vehicle
per year.
· The government claims 700,000 vehicles were traded in, 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 $350 million dollars at $75/bbl.
· So, we all contributed to spending $3 billion to save $350 million/year.
How good a deal was that?
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And in the process, the government (fed and state) gives up the gas tax revenue on that 224 million gallons/year.
Put out of business a lot of independent garages who fixed those clunkers; and saddled a lot of those 700,000 buyers with new car debt they could not afford and will not be able to pay..
Has forced up the price of affordable transportation to poorer people by removing these clunker cars from the used car market.
And many auto dealers are still waiting to be paid by the government.....many dealers had to forego participation in the midst of the program because they were merely carrying loans for the government.
And has anyone done the energy requirements necessary to assemble, transport and demolish 700,000 clunkers?!
Looks like Washington math to me.....
and these same Washington types want us to allow them to do health care.
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