I must be really stupid. Here is the "Cash for Clunkers" plan as I understand 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 "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.


         So, we all contributed to spending $3 billion to save $350 million. 

 

If that doesn't scare you enough, remember that these are the same folks who will soon control your health care.

 

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          How good a deal was that ???