Americans for Tax Reform (ATR) released calculations that show the economic failure of the “Cash for Clunkers” government sponsored program.
ATR President Grover Norquist said, “This is nothing more than the President using the guise of ‘green energy’ to cover-up yet another massive multi-billion dollar spending project. When are these people going to learn throwing money at the economy is not the answer?”
The analysis on the “Cash for Clunkers” program is below and can also be found on the web at www.atr.org.
Interesting analysis … Oil field math by Stephen Wilkinson, CompleteRX Ltd
“A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year. A new vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons of gas a year. So, the average Cash for Clunkers transaction reduced gasoline consumption by 320 gallons per year. 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. 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. So, the government paid $3 billion of our tax dollars to save $350 million. They spent $8.57 for every $1.00 they saved.
I’m pretty sure they will do a much better job with our health care though.”