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Subject: Cash for Clunkers


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 U S consumption.


5 million barrels of oil costs about $350 million dollars at $75/bbl.


We spent $3 billion to save $350 million.


How good a deal was that ?


They'll probably do a great job with health care, though.