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Economics 101: The Price of Gas (Gasoline .30 1950 adjusted for taxes and Inflation 3.23)
Mises.Org ^ | 21 April 2008 | Sterling T. Terrell

Posted on 04/22/2008 10:07:21 AM PDT by shrinkermd

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To: shrinkermd

No way poor and lower-middle class families can continue to pay these gas prices. Even the regular middle-class is being hit hard what with all the other expenses such as groceries, higher utilities, etc.

It doesn’t matter how much gas was in the 1950’s, today’s price is the concern for everyone. Eighty dollars or more to fill a tank? That’s a day’s wage after taxes for some people.

Don’t know where things are heading, but everyday life for many people is being affected badly. Guess this is one way to hurt the U.S. economy for those wanting to. People have little money left over for other purchases.

Those who can afford the high prices should keep in mind the other 80% of the population cannot. The economy will slow down even more.


41 posted on 04/22/2008 12:31:15 PM PDT by Cedar
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To: Cedar
No way poor and lower-middle class families can continue to pay these gas prices.

Yep. This is true. And those of us who can just afford the gas have stopped buying other things.
42 posted on 04/22/2008 12:34:02 PM PDT by mysterio
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To: mysterio
No way poor and lower-middle class families can continue to pay these gas prices.

If you'd asked me a couple years ago about what would happen if gas was 4 bucks a gallon, I'd have predicted major changes.

Now it's happened and.......

Just as much traffic as ever (and not just @ commute times)

I drive the speed limit and 90% of the traffic flow goes by on the left

Car pooling? what's that?

so I'm wondering how much difference it really makes?

43 posted on 04/22/2008 12:44:30 PM PDT by nascarnation
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To: mysterio

Gas, Food, Taxes, Medical.

I have two girls to send to college and to marry off. Forget about retirement!!!!!!!!!!!!!!!!!!!!!


44 posted on 04/22/2008 12:55:58 PM PDT by angcat (Indian name "She who yells too much")
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To: nascarnation
They're still driving because they have to. Most can't afford to just move closer to work. So they stop buying other things.

You may not think it makes much of a difference, but if it continues, you'll see a lot of stores closing because people spend their entire discretionary income on overpriced energy.
45 posted on 04/22/2008 12:57:44 PM PDT by mysterio
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To: shrinkermd

I live 1.5 miles from work, and driving a 12 MPG, full-size van, I use far less gas than my hybrid-driving commuter friends.


46 posted on 04/22/2008 1:06:24 PM PDT by vamoose
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To: dalereed
Where does this clown get $.30 in 1950, in 1952 I was only paying $.139/gallon.

I thought the same thing, I remember paying 30 cents per gallon in the 70's.

Gas prices will go down one day, that day being the day that no one will be able to afford the posted price.

47 posted on 04/22/2008 1:07:17 PM PDT by AxelPaulsenJr (God Bless George W. Bush)
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To: ex-Texan
OPEC will eventually demand Euros over dollars.

Wonder if the EUROpeans will be the ones defending OPEC from the next mad tyrant to come on the scene?

48 posted on 04/22/2008 1:09:11 PM PDT by AxelPaulsenJr (God Bless George W. Bush)
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To: mysterio
You may not think it makes much of a difference, but if it continues, you'll see a lot of stores closing because people spend their entire discretionary income on overpriced energy.

You may actually want to try looking at the data about what % of income people spend on their "energy" rather then just emoting. Conservative think, we do response to vapid emoting. Your statements on this thread are pure hysteric emotionalism that do not have any base in fact.

If you burn 20 gallons of gas a week, which is a considerable amount of gas for the average person and the price goes up to $5.00 the change in cost to you each week is 20 x$2.50 = $50.00 a week or $200 a month. Since the price rise lasts about 4 months out of the year, that is an annual increase in cost of about $800.00

That is NOT going to require the average family to significantly change their lifestyle. Maybe they will eat more home cooked meals rather then going out or buy more generic rather then name brand products or cut back on some of their leisure time activity but it is NOT going to cause an Economic Depression.

49 posted on 04/22/2008 1:22:30 PM PDT by MNJohnnie (http://www.iraqvetsforcongress.com ---- Get involved, make a difference.)
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To: Cedar

They always say the poor and middle class can’t afford X, and yet they always seem to. We’re in a transition time, gas was really cheap for a really long time, but the historical average shows that was an aberration, it was below normal pricing when adjusting for inflation and other forces. Transition times are always the hard part, when something goes from below normal price to normal price or above that’s when the pain is felt. Once things stabilize people get used to it again and the pain goes away.

As for $80 or more to fill a gas tank, buy a more fuel efficient vehicle. $80 is 20 or more gallons, nothing with a 20 gallon tank is getting good millage. Your $80 refill is probably barely getting you as far as my $35 refill (320 miles city, close to 400 highway).


50 posted on 04/22/2008 1:23:26 PM PDT by discostu (aliens ate my Buick)
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To: MNJohnnie

It’s the whole mindset where people are doing okay themselves, but they think everyone else is a paycheck away from the soup lines.


51 posted on 04/22/2008 1:25:12 PM PDT by wagglebee ("A political party cannot be all things to all people." -- Ronald Reagan, 3/1/75)
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To: MNJohnnie
YOU'RE going to tell me about facts v emotion? That's a real laugh.

If everyone stops spending $200 per month in discretionary spending, don't you think that might have a bit of an effect on the overall economy? Especially after you add in the fact that NG heat bills are jumping and that the cost of everything transported is skyrocketing due to fuel prices. So it isn't the $200 figure you quote. It's actually much more.

If you make your living selling or making something non-essential, you'll find out soon enough.
52 posted on 04/22/2008 1:30:46 PM PDT by mysterio
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To: mysterio

So far I’m not seeing it. I was just at the fair this weekend, over and above being an entirely discretionary spending event the Pima fair is WAY out of town, minimum 30 mile round trip for the vast majority of people. Even people who live in the Southeast “boonies” of Tucson that are conceptually “near” the fair have a good 5 miles to get there. And yet the place was packed and the money was flowing. Still got the huge pile of Mexican license plates at the malls every weekend too. Gas prices don’t seem to be slowing down everything, everybody complains but nobody is actually changing their habits.


53 posted on 04/22/2008 1:32:13 PM PDT by discostu (aliens ate my Buick)
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To: shrinkermd

Using this logic a desktop computer should cost several hundred billion dollars.


54 posted on 04/22/2008 1:37:41 PM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: discostu

The people in my area have certainly begun to change their spending habits. Of course, I am in a small town environment.


55 posted on 04/22/2008 1:46:37 PM PDT by mysterio
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To: mysterio
It a simply problem of supply and demand. When demand goes up, the price for the supply goes up. As the price for an item goes up, demand drops. People are not yet at the point where they are altering their behavior because the price is too high. It will go considerably higher before that will ever happen.

England pays about $8 something a gallon and their roads are jammed full of cars. The high price of gas has NOT changed their driving habit or their economy at all. People learn to adapt to changing circumstances. Maybe they don't on vacation this year. Maybe they sell their boat. Maybe they mow their own lawn instead of hiring a lawn service. Etc etc etc

Like most Leftist you seem to think someone in Govt is suppose to take care of YOUR responsibilities, like buying energy, so that your personal life style remains forever unaltered.

Hate to tell you this but YOU are responsible for YOU. No one else is responsible to make sure you have cheap energy.

This is the logical cost of our societies fashionable “environmental” polices. You all screamed during the 1970-80-90s to “give a hoot, don't pollute” and shifted that nasty unsightly energy production away from your homes to overseas in the name of “green politics”. Well this is the logical cost of those self absorbed political decision. There is no free lunch. You all wanted your “green” environment. Well you got it. Now you are paying the price for it by being subject to the tides of the international energy markets.

56 posted on 04/22/2008 1:53:18 PM PDT by MNJohnnie (http://www.iraqvetsforcongress.com ---- Get involved, make a difference.)
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To: rednesss

I don’t think you heard it from me that they were complaining of slim profits. But given your figures (Which you packaged quite nicely) I don’t think their profits are excessive at all.

That is 4.5 billion dollars...compared to the amount of stuff processed, the amount of money it costs and whatever they have to do with profits (reinvest in hardware, etc) it doesn’t sound like they are gouging anyone. It is a big industry.


57 posted on 04/22/2008 2:03:46 PM PDT by rlmorel (Liberals: If the Truth would help them, they would use it.)
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To: MNJohnnie

Since you reverted to your usual name calling, my participation in this discussion with you is over.


58 posted on 04/22/2008 2:19:15 PM PDT by mysterio
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To: mysterio

Small towns tend to have very delicate economies.


59 posted on 04/22/2008 2:26:40 PM PDT by discostu (aliens ate my Buick)
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To: shrinkermd
For the naysayers and deniers you can check the author's figures on inflation adjusted gasoline by going: HERE.

This is the Federal Reserve Bank calculator for inflation. Note, the inflation imputed is not solely energy; this means that the inflation rate is probably more lately because energy and food have been both volatile and rising faster than other portions of living costs.

60 posted on 04/22/2008 2:39:44 PM PDT by shrinkermd
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