I guess I must be on the wrong page on this "clunker" stuff ...
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 per 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 per bbl.
So, we all contributed to spending $3 billion ....... to save $350 million.
Hmmmmmmmmm. How good a deal was that? But, I'm thinking that they will probably do a great job with health care though!