Posted on 08/31/2005 11:34:55 AM PDT by JZelle
Nationally, the average price for regular gasoline around $2.50 per gallon. Are gasoline prices high? That's not the best way to put that question. It's akin to asking, "Is Williams tall?" The average height of U.S. women is 5 foot four. For men, it's 5 foot 10 inches. Being 6 foot four, I would be tall relative to the general U.S. population. Put me on a basketball court, next to the average NBA player, and I would be short. So when we ask if a price is high or low, we must ask: relative to what? In 1950, a gallon of regular gasoline sold for about 30 cents; today, it's $2.50. Are today's gasoline prices high compared to 1950? Before answering, we have to take into account inflation since 1950. Using my trusty inflation calculator (www.westegg.com/inflation), what cost 30 cents in 1950 costs $2.33 in 2005. In real terms, that means gasoline prices today are only slightly higher, about 8 percent, than in 1950. Up until the recent spike, gasoline prices have been considerably lower than 1950 prices. Some Americans demand the government do something about gasoline prices. Let's think back to 1979 when the government did something. The Carter administration set up price controls. What did we see? Long gasoline lines, if the station hadn't run out of gas. It's estimated Americans used about 150,000 barrels of oil per day idling their cars while waiting in line.
(Excerpt) Read more at washingtontimes.com ...
And we have another winner...
"Posted by FreeDemm to MurryMom
On News/Activism 07/06/2005 11:53:13 AM PDT · 39 of 44
It's like you read my mind and then wrote it all down. You have said everything I've been saying for years, only much better. I was raised fundie, and as a kid I was taught to help the down and out, to take care of the earth, etc. And then as I grew up, I realized the people who taught me this actually wanted to do the opposite of what they said. I want no part of that. And now, 30 years later, they are even further away from what they preached than they were. All I see now is hatemongering and evilness, far from the loving, helpful, Jesus-like people we were taught to be.
Thanks Murrymom, you are right on."
Really, try studying economics and the 1970s energy crisis. Really. We'll still be here when you are done.
The method of payment and the identity of the pump operator are trivial. The lines were brought about by scarcity and rising prices leading to people topping off their tanks with gas before the prices went up again.
SD
Dr. Williams accounting for inflation is only part of the puzzle. Since we are so much more productive and therefore well-paid than in the '50s, we can AFFORD to pay more for gas. The price of gas in hours worked / gallon has DECLINED substantially in that time.
I haven't seen the math done yet, but I'll bet it is something like 30 minutes of work per gallon in the '50s, compared to 15 minutes of work per gallon now.
The price of gas at a station across from my post office jumped 30 cents in 30 seconds today. Regular unleaded was $2.99 per gallon when I went in to pick up my mail and when I came out the same sign now read $3.29.
We have the highest gas tax in the nation . . .oh joy.
"Price caps now would not cause the kind of lines you had back in '79 for 2 reasons.
1. Back in 1979 there was no self-serve. You had to wait for some gas monkey to come gas you up. and ...
2. There are many more gas stations now than 25 years ago. If one doesn't have gas, the fellow a block from you will.
Most gas stations didn't have convenience stores attached back then either. Look at the delay potential there. Nothing sucks more than waiting to pump gas while the guy in front of you is buying a pack of smokes and a slushee.
Good news. They have relaxed the rules on refineries regarding sulfur and another chemical,(cant recall which). It is in affect until Sept 15th and applies to ALL states.
Bet that will get Robert Kennedy's goat.
Nationwide gas cap is required.
"Nationwide gas cap is required."
I'm very surprised to be seeing this on a purportedly conservative site.
Pick your poison... ration by price with ready availability, or cap the price and ration availability.
I'd rather have ready availability, myself.
What a great reply, very meaningful to the conversation.
Considering that the rationing of availability is already in play, go ahead a cap the price.
"What a great reply, very meaningful to the conversation."
Why, thank you, troll. I mean that in the nicest way possible, of course.
"Considering that the rationing of availability is already in play, go ahead a cap the price."
Other than the possible Colonial Pipeline situation in Atlanta, where are there constraints upon availability now? A price cap will mean widespread shortage, as it always has and always will, unless you're putting a gun to someone's head and forcing them to pump crude, refine it and bring it to market.
Still not believing in the law of supply and demand, are ya?
If the prices were capped, people would wait in line to get gasoline while the gettins good. Price caps will cause shortages. Shortages mean people will be afraid of not being able to get any when they really need it. So they will topp off tanks often. Meaning stations will be crowded and lines will develop.
It's elementary.
Look, I got my license in 1974! I've pumped gas (or had to wait for it to be pumped for me back then) since then. I remember the 1973 crunch and had to drive my way through the 1979 crunch. So don't tell me what the problems were when I LIVED through them.
So why didn't you learn anything back then? I was in my childhood and even I understood that when an item is scarce people hoard it and end up creating a greater demand for it.
SD
People either are ignorant of, or want to repeal, basic economic realities when it becomes inconvenient.
SD
Are you a Sojourner? (www.sojo.net - Marxism with 'Christian' lingo)
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