I didn’t check the math on this, so it’s possibly overstated. But you can see where they are going with it.
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 clunker 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 $75/bbl.So, we all contributed to spending $3 billion to save $350 million.How good a deal was that???
But, the government will probably do a great job with healthcare!!OR WILL IT?