I just got this e-mail from my pet wingnut:
Keep your eyes peeled for our ever vigilant media to jump on this one – yeah, right.
I guess I must be on the wrong page...
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.
Follow below the jump for the rest, and the analysis.
I guess I must be on the wrong page...
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 ???
They'll probably do a great job with health care though!!
Firstly, they didn't even get their own arithmetic right on the surface, because 5 Million * $75 is not $350 million, it's $375 million. However, more importantly, they got the production figures wrong. According to this government website, A barrel of oil produces only 19.5 gallons of gasoline, so that 224 million gallons of gasoline requires 11.5 million barrels of oil. At $75 per barrel, that amounts to $862,500,000 per year saved. That means in 3.4 years we break even, on gas saved alone. However that doesn't include the hidden costs of pollution and accidents that will presumably be reduced, in addition to jobs created which then go on to contribute taxes overall. I wouldn't be surprised if this paid for itself in 2.5 years. Even less if we allow for cars greater than 25 mpg being purchased, or more like 15000 miles per year, etc.
I expect the same kind of long-term benefits with a health care plan. I don't know about you, but I don't wait until the wheels fall off before I take my car to the shop, because it is not efficient. Likewise, I don't think the most efficient path to good health is to wait until grave illness before seeing the doctor.