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Friday, April 02, 2010

Car scrappage scheme ends

The government car scrappage scheme has now ended. It cost £400,000 and the government claims that it helped save 4000 jobs.
Full story here

Do the maths. It works out that the government spent £100,000 of taxpayers money to safeguard a job that probably pays £25,000 pa. Someone on £25k probably pays 8k in taxes and NI, so they spend £100k and get 8k back.

Sound economics eh?

UPDATE. All the cars are stored on the runway at Thurleigh. Sensible eh? The government paid to empty acres of new cars stored on runways, and left thousands of older cars in their place.

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