"Cash for Clunkers" - How much was saved?

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Liveliner

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<div>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.</div><div>
</div><div>He says that:</div><div>A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.</div><div>A new vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons of gas a year.</div><div>So, the average Cash for Clunkers transaction reduced gasoline consumption by 320 gallons per year.</div><div>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.</div><div>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.</div><div>So, the government paid $3 billion of our tax dollars to save $350 million. They spent $8.57 for every $1.00 they saved.</div><div>I'm pretty sure they will do a much better job with our health care though.</div>
 

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