A big surprise on gas (fuel is more affordable than it was during the early '60s)

After studying the average yearly price of gasoline from 1949 to 2007, and assigning the number "1" to the ratio in 1960, we found today's prices comparable to what they were in 1960 (1.35 today to 1.00 in 1960, with a high of 3.32 in 1998). The higher the gasoline affordability index figure, the lower the price of gasoline relative to disposable income.

Anger about rising fuel prices has taken a while to build because, until the last year or so, the increases could be shrugged off as natural year-to-year price variation. Moreover, pump prices still seemed relatively cheap given increases in personal wealth. Personal disposable income since 2000, for instance, has increased by an average of about $4,800 a person. Those very real increases in economic well-being reduced the pain of higher prices at the pump. People didn't notice that real gas prices were higher because the percentage of their income going to the gas station was at an all-time low until recently.

...But perception is not reality where gas prices are concerned. By June of this year, disposable income had risen by an average of $1,627 per person over last year's figures, according to the Department of Commerce, while the average person's real expenditures on gasoline increased by about $490. Our incomes are still outpacing gasoline price increases. The problem is that our incomes aren't outpacing the increase in gas prices lumped together with increases in everything else -- air conditioning, food, etc. Our homes, meanwhile, are losing value.

But gasoline is more affordable than it was during the early 1960s, an era fondly remembered by many as halcyon days of cheap fuel and gas-guzzling American cars. We're overlooking that context because it's easier to remember 1998, when we saw the lowest inflation-adjusted gasoline prices in recorded history.

The difference is that today, we drive much more than we did in the early 60s.”

NOT ME...I drove about 35,000 miles a year in the early 60’s. Attended a drag race every weekend but one. Drove a car that got about 16 MPG, and altho I didn’t make much money then, I could afford the gas just fine. Car payment on a Pontiac Wagon was $99.64/month and insurance was reasonable if you didn’t have a bad driving record.
Now, I am trying to be retired. Gas is hanging around $4 a gallon and I dont drive 5000 miles a year in 2 vehicles.
My income-gross-on soc sec is about twice as much as my gross earnings then, but my insurance alone is waaaaay up. I have had 2 moving tickets in my life—1957 and 1981. Fully 1/3 of my premium monthly is for “uninsured motorists”, which is double speak PC for ILLEGAL INTRUDERS. In the 60’s, it cost me $1 a month for coverage against uninsured motorists...now that is closer to $35 a month. That is an alarming increase. 3500% increase. Food is higher, also due to fuel prices.
Eating out even once a month is gone, and I consolidate trips as tho I were a big-rig dispatcher for a major freight company.
Harder and harder for those of us who worked all our lives —17 to current(69)—and are feeling trapped.
Beyond making large purchases and no longer need clothes for work standards imposed by employers. Live where there is no state income tax. Sold larger house and down-sized.

Another article trying to convice people fuel is cheaper now? LOL...It's like everything else nowadays...Like the article I read yesterday, about 40 million uneducated illegals in America being good for us.

I'm getting daily visions of Charlton Heston in the ape movie.

It's a mad house.

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