It seems like every day I read about how government wastes money so I thought I would record them. Since I began this blog, I have been stunned by the amount of waste, fraud, and mismanagement I have found. I recognize that some government is necessary for any society to exist but without the "profit incentive" that we have in private enterprise, government continues to grow like a cancer and along with it the potential for abuse. If you ever needed a reason to limit government, just read some of the following posts.

Friday, January 25, 2013

Cash For Clunkers

A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year. A new vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons of gas a year. So, the average Cash for Clunkers transaction reduced gasoline consumption by 320 gallons per year.

The government claims 700,000 clunkers have been replaced so that is 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 US consumption. More importantly, 5 million Barrels of oil at $70 per barrel costs about $350 million dollars.

So, the government paid $3 billion of our tax dollars to save $350 million. They spent $8.57 for every $1.00 they saved. I’m pretty sure they will do a much better job with our health care though.
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