News, Think $2.90 for Gasoline Is High? Try $5.17
- Thread starter JohnBoy45
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midlf
Platinum Member
Interesting article. Some changes since 29 cent gas, one of which is amount of gas used. In 1955 my dad figured anyone who commuted to the next town was nuts. The next town was 5 miles away. In good weather he would walk to work even though it was half way across town, and thus was 1 mile way. For me the daily commute is 35 miles and thus gas price changes have a greater impact. The spouse keeps saying there is no gas crisis, only a consumption crisis.
EddieWalker
Epic Contributor
Gotta love there reasoning. Gas cost .29 cents a gallon in 1955 and would equate to $1.76 per gallon today if adjusted for inflation, they feel that's not enough to show a burdon so then they start adding on expenses to justify that gas is still reasonable at $2.90.
These people doing this "funny" math rely on allot of assumptions on what other people do and do not accept as a burdon.
There reasoning that houshold per capita income having increased fails to mention the standard of two incomes comeing in as well to meet expenses. To assume that since the "household" is making more money, thus we all have more disposible income compared to 1955 seems a little far fetched and self justifying in their conclusions.
Eddie
These people doing this "funny" math rely on allot of assumptions on what other people do and do not accept as a burdon.
There reasoning that houshold per capita income having increased fails to mention the standard of two incomes comeing in as well to meet expenses. To assume that since the "household" is making more money, thus we all have more disposible income compared to 1955 seems a little far fetched and self justifying in their conclusions.
Eddie
Gatorboy
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<font color="blue"> ( What do you think about this news article? ) </font>
What do YOU think about it?
What do YOU think about it?
flwiii
Gold Member
That a statistician for ya. Always playing with the numbers like a Chicago Mobster Accountant from the 30's. The real figures that I would like to compare are just the basics.
How much does it ACTUALLY cost to refine 1 gallon of gas today. Subtract this from what they charge to the gas station per gallon today and hold that figure.
How much did it ACTUALLY cost to refine 1 gallon of gas in 1955. Subtract this from what they charged the gas station in 1955 and hold that figure.
Compare the 2 figures and see how that stacks up to the costs extrapolated from inflation rates. We might then get to see whether or not we are being gouged.
I sometimes think the oil industry took their queue from the banking industry back in the 70's. Actually though, now that I think about it. The banks probably took their 70's queue from the Oil Industry. Only the Oil Industry doesn't quit playing the game.
Prior to the interest rate hike of the 70's, banks made only 1% above the prime rate. They yanked the rate up to like 5% to 7% over prime just so they could reduce them to the 3% that they wanted to hike it to in the first place. That way we got that warm fuzzy feeling cause they went down, not realizing they were making triple what they were.
The Oil Industry doesn't care to give us that warm fuzzy feeling.
How much does it ACTUALLY cost to refine 1 gallon of gas today. Subtract this from what they charge to the gas station per gallon today and hold that figure.
How much did it ACTUALLY cost to refine 1 gallon of gas in 1955. Subtract this from what they charged the gas station in 1955 and hold that figure.
Compare the 2 figures and see how that stacks up to the costs extrapolated from inflation rates. We might then get to see whether or not we are being gouged.
I sometimes think the oil industry took their queue from the banking industry back in the 70's. Actually though, now that I think about it. The banks probably took their 70's queue from the Oil Industry. Only the Oil Industry doesn't quit playing the game.
Prior to the interest rate hike of the 70's, banks made only 1% above the prime rate. They yanked the rate up to like 5% to 7% over prime just so they could reduce them to the 3% that they wanted to hike it to in the first place. That way we got that warm fuzzy feeling cause they went down, not realizing they were making triple what they were.
The Oil Industry doesn't care to give us that warm fuzzy feeling.
scott_vt
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Hi Dave,
I like your new picture, what kinda cigar you got there /forums/images/graemlins/grin.gif ?
I like your new picture, what kinda cigar you got there /forums/images/graemlins/grin.gif ?
scott_vt
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Hi Dave,
I like your new picture, what kinda cigar you got there /forums/images/graemlins/grin.gif ?
I like your new picture, what kinda cigar you got there /forums/images/graemlins/grin.gif ?
goodoleboy
Gold Member
The article does not mention that a large part of the US economy is based on cheap fuel that is not "adjusted for inflation."
goodoleboy
Gold Member
The article does not mention that a large part of the US economy is based on cheap fuel that is not "adjusted for inflation."
