Cash for Clunkers Puts the United States in the Junkyard Biz
(Actual Facts and Figures!)
Cash for Clunkers proved that the government should stay out of the private sector.
A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.
A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.
So, the average Cash for Clunkers transaction will reduce US gasoline consumption by 320 gallons per year per clunker.
They claim 700,000 vehicles so that’s 224 million gallons saved per year.
That equates to a bit over 5 million barrels of oil.
5 million barrels is about 5 hours worth of US consumption.
More importantly, 5 million barrels of oil at $70 per barrel costs about $350 million dollars. So, the government paid $3 Billion of our tax dollars to save $350 million.
We spent $8.57 for every dollar we saved.
We can rest assured that they will do an equally wonderful job with health care!