You've Got to Spend Money to Spend Money
From genuine rocket scientist Ed Lambert:
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 "Cash for Clunkers" transaction will reduce US gasoline consumption by 320 gallons per year.
They claim 700,000 vehicles – 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 $70/bbl.
We all contributed to spending $3 billion to save $350 million. How good a deal was that ???
They'll probably do a better job with health care though