The Obama regime’s newest money-saving ploy of “Cash for Clunkers” has opened and closed at a net cost to the US taxpayers of $3 billion. This program was designed to remove gas-guzzler cars from the roads and replace them with cars that get an average of 25 miles per gallon. Now, let’s do the math:
‘Clunker Car’ gets 15 mpg. The average car drives 12,000 miles per year. That means that the Clunker Car will, on average, consume 800 gallons of gas (12,000 divided by 15 mpg = 800 gallons).
The ‘New Car’ will get 25 mpg. Using the same annual driving average of 12,000 miles per year, the New Car will consume 480 gallons of gas (12,000 divided by 25 mpg = 480 gallons).
Therefore, the move from the Clunker Car to the New Car will save a total of 320 gallons of gas per year per car (800 gallons minus 480 gallons = 320 gallons difference).
The Obama regime claims that the “Cash for Clunkers” program was a huge success in that 700,000 clunkers were traded in. If this figure is accurate (and it is being reported that it is far above the real numbers traded), then the program will have generated a net gas savings of 224 million gallons of gas (700,000 times 320 gallons per car = 224 million gallons).
Wow…224 million gallons of gas saved! That’s great, right? Wait a minute…let’s keep that calculator humming along here…shall we?
A barrel of oil is 42 US Gallons. One barrel of oil will produce 19.5 gallons of gasoline with the remainder producing other goods such as fuel oil, jet fuel, grease, asphalt, plastics, etc.
Remember that the Clunker program is claiming it will save our people 224 million gallons of gas. That means it would save about 11.5 million barrels of oil that it would take to produce those saved 224 million gallons of gas.
If oil is at $75 per barrel, then 11.5 million saved barrels is a savings of $862,500,000. Wow…we saved $862,500,000 with this program that was the brainchild of the Obama White House! Sweet, right? Nope…actually, it’s going to be pretty bitter tasting. Here is why…
The “Cash for Clunkers” program cost us $3 billion in cash (not credit) to fund and operate. So, in reality, we spent $3,000,000,000 to save $862,500,000 (or in easier to understand terms, we spent $30.00 to save a total of $8.63. That’s an actual 350% cash loss on our money (at that rate, it won’t take long at all to be totally bankrupt). Rounding it out to simple numbers, that means that the Obama regime saved us $1.00 but charged us $4.00 for doing it. Hmmm…do you think some pockets got lined? Hmmm…
It’s OK if you want to pause reading and go puke now.
Yet another great “change” brought to us by the Obama mathematical geniuses at the remodeled White House. I can’t wait to see what they can do with the health care industry! **sounds of a toilet flushing**