by Larry Grohn
Remember Cash for Clunkers Program?
How the Federal Government works
Interesting
figures, however I have checked the stats on this. I came up with slight
different figures because the price of gasoline today is so much higher
than it was in 2009. Even with that taken into consideration the cost
of the program would only drop to about $4.40 spent to save $1.00 based
on $3.60 per gal. I saw gas today priced from $3.61 to $3.79.
How the Federal Government works
- Cash for Clunkers
- The person who calculated this bit of information is now, and has been a Professor at the University of West Virginia in Morgantown for the last forty some years.
- He says that:
- A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.
- A new vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons of gas a year.
- So, the average Cash for Clunkers transaction reduced gasoline
consumption by 320 gallons per year.
- The government claims 700,000 clunkers have been replaced so that is
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.
- They spent $8.57 for every $1.00 they saved.
- I'm pretty sure they will do a much better job with our health care though.
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