If you can balance a checkbook, you can figure out that our “bailout” programs will end up costing us (The U.S.) many times more than we would lose without them.
“Your tax dollars at work:
– A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.
– A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.
– So, the average Cash for Clunkers transaction will reduce U.S. gasoline consumption by 320 gallons per year.
– They claim 700,000 vehicles so that’s 224 million gallons saved per year.
– That equates to a bit over 5 million barrels of oil.
– 5 million barrels is about 5 hours worth of U.S. consumption.
– More importantly, 5 million barrels of oil at $70 per barrel cost about $350 million dollars.
– So, the government paid $3 billion of our tax dollars to save $350 million.
– The government spent $8.57 for every dollar saved.