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 ...
I guess this depends on where you live, but I believe that in most metropolitan areas, self serve was a reality way before 1979. I got my license in 1977, and I have ALWAYS had to pump my own gas.
HALIBURTON'S FAULT!
"Big Oil has us by the nadz!"
And we have ourselves a laughably "covert" DUmmie.
Relative? Relative to what? Is the color blue actually blue, maybe someone else see's blue but it's green to you but everyone calls it blue because thats how they recognize it. Insane? Thats what I read when I read your post, relative to what?? How about relative to a YEAR ago, to two years ago. Never in history has gas prices gone up this much, this fast, there is nothing to relate it to.
"Okay Newbie, while you might be right to a point, your use of the phrase "Big Oil" reeks of being a troll."
And advocating "Big Socialism" as a cure-all smells just a tad, too.
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.
Try studying economics again. The law of supply and demand does not rest upon the identity of the person filling the tank. If prices are capped, supply will shrink. Regardless of how many stations there are or if you have to pump it yourself.
SD
Following your line of reasoning in point 2, do you have a hard time figuring how a check can bounce when you still have checks in the book?
Helloooooo. If the price is capped and suppliers see a loss in profits, there is no incentive to produce low profit gasoline. Why should they wear out old refineries to make no money? Supplies will diminish until the caps are removed. Oil companies will divert oil to more profitable countries. Voila, gas lines again!
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