I was out sorting thought various news items when I came across this bit of info. It did not give any credit to the author but I thought I’d share the math on the clunkers program with our readers.
I’m really not trying to be judgmental but as they say, you do the math. Let me summarize.
A vehicle getting 15 mpg and averages 12,000 miles per year uses 800 gallons a year of gasoline. A vehicle getting 25 mpg and averages 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
Cash for Clunkers DOT officials reported 690,000 vehicles sold during the program – so that’s 220.8 million gallons per year.
That equates to saving close to 5 million barrels of oil per year. I repeat—per YEAR. 5 million barrels of oil is about ¼ (25%) of one day’s US consumption. And, 5 million barrels of oil costs about $350 million dollars at $70/bbl.
Our Government “gave” each Clunker Trader approximately $4,500 per car for 690,000 transactions which cost US Taxpayers $2,877,000,000–not including Washington’s astounding Administrative costs.
President Obama said in his speech to auto workers in Ohio recently, “One of the other efforts we undertook was the Cash for Clunkers program. Folks said that wouldn’t work either. That program was good for automakers, it was good for consumers, and, by the way, it was good for our environment.” What I did not read in that speech was that it was good for taxpayers, and here’s why.
We all invested and paid (through our taxes) more than $3 billion+ $150,000,000 to administer, to save $350 million.
And the return on investment is….Priceless