The Cash for Clunkers program clearly had some success in helping auto manufacurers and dealers. It may have saved some jobs and possibly kept some dealers from closing down. But the numbers show that it did little to reduce the US dependence on imported oil. From a Sober Look reader:
"· 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 $375 million dollars at $75/bbl.
· So, we all contributed to spending $3 billion to save $375 million."
Hat tip Chris.