Clunker Math

[djcraig]

Think of it this way: A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year. A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year. So, the average Cash for Clunkers transaction will reduce individual vehicle gasoline consumption by 320 gallons per year. They claim 700,000 vehicles so that's 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.

We spent $8.57 for every dollar we saved.

I'm pretty sure they will do a great job with our health care though.




<a href="http://www.djcraig.net/los_angeles_dj">DJ Craig</a>

[Bitter Almonds]

<p align="justify">Just like wasting money on the "obesity epidemic." Being a lazy, lard-ass is not a disease. If these fat fucks stopped shoveling so much goddamn food into their troughs, they'd be CURED![}:)]


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<img src="http://img.photobucket.com/albums/v465/Nuwavghost/dij.gif">

[Violent Pacification]

"Think of it this way: A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year. A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year. So, the average Cash for Clunkers transaction will reduce individual vehicle gasoline consumption by 320 gallons per year. They claim 700,000 vehicles so that's 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.

We spent $8.57 for every dollar we saved."





You need to use the refined cost for your calculation. One gallon of gas (today) is $3. The crude is not a finished product so it is inapplicable. (Of course today it's trading at $90 BBL)

224 million times three is 672 million

The U.S. Department of Transportation reports that the average life span of a vehicle is just over 13 years, with a final mileage of 145,000 miles.

For simplicities sake I will use ten years as the number.

So multiply that savings by ten, as it occurs every year

10 times 672 million equals 6.72 billion

So we saved $2.24 for every dollar that was spent.