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 40 some years.
He says that:
- 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 healthcare though.
Snopes information on the subject:
If you take into account the Snopes information of each barrel of oil resulting in less gasoline and you factor in a vehicle lasting 4 years. the newly calculated savings can be as much as 2.9 billion dollars. This is still a net loss of 100 million taxpayer dollars.
Operating a program at a loss still cost the taxpayers money. Eventually, the money will run out.