What company can "rig up a Hummer to get 100 MPG"?

On Mon, Aug 3, 2009 at 1:47 PM, Wade Preston Shearer <
[email protected]> wrote:

> On 3 Aug 2009, at 12:05, Ryan Simpkins wrote:
>
>  A bunch of the SAs at work started doing some back of the napkin
>> calculations
>> around the "Cash for Clunkers" program. As SAs we often deal with very
>> similar
>> calculations. For example, we often ask: "How much money will we save over
>> x
>> time if we get rid of old busted technology in favor of the new hotness?"
>> Improvements to technology typically come with a cost and benefit. What
>> are
>> the costs and benefits here?
>>
>
> I think that this program is a load of crap. It's amazing how short-sighted
> it is. Sure, it generates sales today, but what about tomorrow? Where is the
> money going to come from to pay back all these dealers (our country is
> already trillions in debt)? Once the excitement is over, how are the dealers
> going to make it through the next several months when people are no longer
> buying cars? One of the reasons that the auto industry is hurting so bad
> right now is because they started offering zero interest loans which caused
> people to rush to buy cars, leaving a void in the present. Cash for clunkers
> is going to do the same thing again. If we increase the over all MPG, less
> taxes will be coming in from gasoline sales, leaving even less money to pay
> of this subsidized joke. And, if we're buying less gas, the price of gas is
> going to go up again, hurting the economy even more. This thing doesn't make
> one bit of sense, beginning to end.
>
> If the point of this program is to stimulate the economy, then why the
> ludicrous requirement that the cars have to be totaled? Wouldn't we have
> more jobs and more sales if the dealers could turn around and resell the
> cars? If the cars being turned in really were junk, then there might be some
> merit, but it is a joke for the government to be overpaying for cars (by
> thousands) and then junking them.
>
> If the point is to help the environment, it doesn't make sense either. New
> cars to replace the "junkers" are only required to get 18 MPG or better. How
> is improving gas mileage by a few miles going to make any difference?
> Shouldn't the requirement be that the new car get 40 MPG or better? Most
> cars that meet the requirements are probably paid off. Why are we
> encouraging people that have hopefully paid-off, perfectly good cars to junk
> them and then go into debt for a new one? Shouldn't we be encouraging people
> to be saving some money? I don't see how saving a couple miles per gallon
> outweighs junking millions of vehicles and using resources to build new cars
> to replace ones that still have life left in them.
>
> There's a company in Provo that can rig up a Hummer to get 100 MPG. Why
> isn't the government giving money to them instead of GM who hasn't improved
> the MPG of their vehicles more than 5 - 10 in the past thirty years?
>
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