A Cash for Clunkers retrospect

Sep 25, 2009 6 Replies

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 vehicle, per year.



They claim 700,000 vehicles so that's 224 million gallons saved per year. That equates to a bit over five million barrels of oil. Five million barrels is about five hours worth of US consumption. More importantly, five million barrels of oil at $70 per barrel costs about $350 million dollars



So, the government paid $3 billion of our tax dollars for this program to save $350 million. That mean=92s we spend $8.57 for every dollar saved. How good a deal was that?



Now think what a great job our Clunkers in Congress will do on Health Care.



Some say, =93The only positive thing about the =93Cash for Clunkers=94 program is that it took thousands of Obama bumper stickers off the road.=94


But remember, over-taxed payers=97 ALL members of Congress have to run for re-election next year. What a wonderful opportunity it=92ll be to flush the toilet.



Why did you pick a year as your analysis period. You could have picked a month instead and then you could make it look even worse. Or you could pick some reasonable time period, say 8 years, and then it would be about even. You also ignore the potential benefit of getting some cash flowing in the economy rather quickly. A benefit that is hard to quantify but almost certainly a benefit and potentially a large one. There are a lot of subtle economic effects going on and you ignore them all.

Pretty typical of brute force anti-change "analysis".

By illustrating your political bias, you lost my respect for your posting.

Hah! I'm sure he's just absolutely devastated by that.

And he gained some respect elsewhere.... :-)

See how that balances out? :)

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