A relative of mine who is a retired math professor just completed an analysis of the cost-benefits of the recent “Cash for Clunkers” program:
A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year.
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.
The Government claims 700,000 vehicles will be affected – 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 this year.
How good a deal was that folks…wonder if they use this math at the Post Office???
they’ll probably do a great job with health care though!!