If the current, ultra-bullish energy market trending continues, gas will be an easy $5 clams a gallon by midsummer. If Iran triggers a regional expansion of the war and oil fields begin going up in flames, $5 may seem real cheap in retrospect.
Posted on 04/22/2008 10:07:21 AM PDT by shrinkermd
First, we need to take into account inflation. The result of the Federal Reserve printing too much money is a loss of purchasing power of the dollar: something that cost $1.00 in 1950 would cost about $8.78 today. As for gas prices, in 1950 the price of gas was approximately 30 cents per gallon. Adjusted for inflation, a gallon of gas today should cost right at $2.64, assuming taxes are the same.
But taxes have not stayed the same. The tax per gallon of gas in 1950 was roughly 1.5% of the price. Today, federal, state, and local taxes account for approximately 20% of gas's posted price. Taking inflation and the increase in taxes into account (assuming no change in supply or demand) the same gallon of gas that cost 30 cents in 1950 should today cost about $3.13.
Neither have supply or demand remained constant. The world economy is growing. China and India are obvious examples. At the same time, Americans continue to love driving SUVs and trucks. As for supply, we are prohibited (whatever the reasons may be) from using many of the known oil reserves in our own country.
Furthermore, due to government regulation, the last oil refinery built in the United States was completed in 1976.
The average price of gas in the United States today is approximately $3.25. The question is, why are gas prices not higher than they are?
Blaming greedy oil companies on the rising price of gas is simply irresponsible. The profit margins of a few selected industries are as follows Periodical Publishing 24.9% Shipping 18.8% Application Software 22.5% Tobacco 19% Water Utilities 10.2% Major Integrated Oil and Gas 9.5% Hospitals 1.4% Drugstores 2.8%
(Excerpt) Read more at mises.org ...
And that’s $200.00/mo per car per household.
Tried to get to a mall parking lot lately?
That’s simply an indicator that gasoline is a necessity in the eyes of the typical person.
Like water, or food, or shelter, or clothing.
One WILL acquire it, there is no other answer. However, unlike food, shelter, or clothing... you don’t have much choice in gasoline. You can buy premium, mid-grade, or regular.
Nobody understands what this means. Let's put it into context. For example, (rough figures, someone please check 'em) the average Joe worked 2 hours to pay for a gallon of gas. Today he works 15 minutes to pay for a gallon of gas. Or some such thing.
OPEC isn't half as much a cause of the worlds energy problems as Russia is.
Propaganda has a long shelf life.
No way anyone would do that now.
And it's funny, because crime is down, and kids have cell phones to stay in touch. The parents can even track the kids online so they can know exactly where they are every step of the way.
Society is just paranoid now.
Where do you live?
“Where do you live?”
Los Angeles, Ca.
According to government firgures then, you are wrong about the price of gas in 1952.
It looks like the average Joe did better than that back then. The data shows 2 bucks an hour in wages. Looks to be close to 7 minutes per hour for a gallon of gas.
The government can go straight to hell !
I know what I was paying for gas in 1952 since my 40 coupe with a big olds in it only got about 5 milers to the gallon and ai was street racing 7 days a week and burning a lot of gas.
Seems people still want to believe it will have no effect. As you stated, other costs such as heating, also food, etc., continue to rise along with the cost of gasoline.
No doubt there will be an effect on the economy with millions cutting way back on other purchases.
I’ve even decided to wait on buying that new laptop I wanted. And was considering a new TV, but no longer.
I like to watch "Let's Make a Deal" reruns from the mid '70s on the Game Show Channel. It's fascinating to see the prices and quality of the goods offered as prizes compared to today, especially the electronics.
If the current, ultra-bullish energy market trending continues, gas will be an easy $5 clams a gallon by midsummer. If Iran triggers a regional expansion of the war and oil fields begin going up in flames, $5 may seem real cheap in retrospect.
Certain industries that are critical to national survival have entirely separate sets of regulatory guidelines.
Oil and transportation and agriculture are some of these industries.
You asked why they would have unused capacities. I was offering some possibilities. We currently subsidize farmers not to use their land (ostensibly for soil conservation but actually to keep the price of certain produce artificially high) to the tune of about 1.8 billion per year.
Gas in my neck of the woods in 1965 was $ .23 per gallon...Today, it's $ 3.77...
We're getting robbed and we're standing still for it...
Had a '61' Ford Falcon that got 31 mpg...
I'm sensing you don't have a clue...
Truck drivers are spending over a thousand bucks to fill their gas tanks...
Every time the gas price goes up, anywhere, the cost is passed on to the consumer...
All plastics use petroleum as part of their make-up...
The price of coal, natural gas an propane have sky-rocketed as well, (just to keep pace with the gas suppliers I suppose)...
If it was just gasoline for our vehicles, you may be on the right track...But that's not the case...
Wow. Any idea why it was so good?
Many of the six cylinders got well over 20 mpg...
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