Those numbers are invalid and unverified. Watch, I can do that too.
Adding in all costs...
$11,500 per car and contributed to consumers paying less at the gas pump OOOH YOU FORGOT THAT HUH
(i really have no dog in this fight, other than proving some of you are too bias and fail to think of all aspects before slamming a view/perception) đ
Originally Posted by: Zero2Cool
1. Average put on a clunker per year: between 10,000 and 25,000. Take the high number.
2. Average MPG (clunker turned in): 15-18 MPG. Take the low number.
Average MPG (new car): 25-30 MPG. Take the high number.
3. Gallons of gas to drive #1 if clunker: 25,000 /15 = 1667 gallons.
Gallons of gas to drive #1 if new car: 25,000/30 = 834 gallons.
4. Average per gallon of gas: $3.25 - $4.00. Take the high number.
#3 x #4 (amount less paid at pump per car): $3,336.
5. Total number of clunkers turned in under program: 700,000.
6. Total number of clunkers that would have been turned in anyway as trade in on new car: 575,000.
7. Total number of "extra" clunkers turned in thanks to Cash for Clunkers program: (#5 - #6): 125,000.
8. Total amount spend by Feds on the program: $3 billion.
9. Cost per car (#8 divided by #7): $24,000.
Secondary source:
CNN . (Original study by Edmunds.com.)
10. Maximum amount received by owner of clunker for turning it in: $4,500.
So, to save a maximum of $3,336 + 4,500 = $7,836, the US Government spent $24,000.
This was a good idea how?
Yes, I am biased against government. I've never denied that. But I'm biased *because* of the evidence I've seen over the years, not despite it. Count the costs precisely, and you find this kind of "return" over and over again.
It isn't surprising since one of every two dollars spent by the US Government is what I call PeterPaul expenditure, or what is technically called "transfer payments," spending that simply takes from one pocket (robs Peter) and puts it in another (pays Paul). Don't believe me? Go to the government's own numbers, bea.gov, and find the figures for total government spending and transfer payments.
Bah.
And do not be conformed to this world, but be transformed by the renewing of your mind, that you may prove what is that good and acceptable and perfect will of God.
Romans 12:2 (NKJV)