Presidential Math: Cash for Clunkers
Spent $3 Billion to Save $375 Million
Today, Americans for Tax Reform (ATR) released calculations that show the
economic failure of the âCash for Clunkersâ government sponsored program.
ATR President Grover Norquist said, âThis is nothing more than the President
using the guise of âgreen energyâ to cover-up yet another massive multi-
billion dollar spending project. When are these people going to learn
throwing money at the economy is not the answer?â
The analysis on the âCash for Clunkersâ program is below and can also be found
on the web at www.atr.org.
o A âclunkerâ that gets 15mpg and travels 12,000 miles per year, consumes
800 gallons of gasoline per year
o A new âfuel-efficientâ vehicle that gets 25mpg and travels 12,000 miles per
year, consumes 480 gallons of gasoline per year
o The average clunker transaction reduces US gasoline consumption by 320
o With 700,000 vehicles participating in this program, thatâs 224 million
gallons/year saved because of this program â roughly 5 million barrels of
o 5 million barrels costs about $375 million at $75/barrel
o The âCash for Clunkersâ costs $3 billion
Congratulations President Obama, Speaker Pelosi
and Leader Reid â you spent $3 billion of taxpayer
money to save $375 million!