Government Intelligence once again the top Oxymoron.
Cash for Clunkers...
Let's look at this from a simple view of logic:
* 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???
What's that, you say? It boosted auto sales? Yeah for one month (akin to the difference in feeding a man a fish and teaching him to fish) and the sad truth is that there are now hundreds of thousands of big car loans out there, where unemployment continues to rise, where there were previously a bunch of paid off cars being utilized before. These clowns can economically pedal back-wards faster than any administration in history. How sad.
Don't even get me started on the many values of starting off with a used vehicle like everyone in my entire family history did.