Gas Prices Are Better Than Ever. Not!
May 27th, 2006 6:00 AM
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I've heard some people say that if you factor in inflation, cost of living, blah-blah-blah, the current per-gallon price of gasoline is a good value when compared with previous decades.
I say baloney.
During the first oil embargo, around 1973, the price of gas jumped by leaps and bounds because of limited supply. But it never went back down once the supply of oil was restored.
The current minimum wage is $5.15. The current average per-gallon price of gas in the United States is around $2.88. That means that in 2006, an hour at minimum wage will buy you less than 2 gallons of gas.
Back in 1968, the minimum wage was $1.60. The average per-gallon price of gas in the United States was around $0.25. So in 1968, an hour at miniumum wage would buy you 6 gallons of gas.
In 1968, a minimum-wage worker could buy more than 6 gallons of gas for an hour's work, and today, a minimum-wage worker can buy only 2 gallons of gas (actually, 1.78) for an hour's work.
That's the REAL world price difference.
Gas prices are NOT better than ever, no matter WHAT you adjust for.
Get Motorcycle.com in your InboxI say baloney.
During the first oil embargo, around 1973, the price of gas jumped by leaps and bounds because of limited supply. But it never went back down once the supply of oil was restored.
The current minimum wage is $5.15. The current average per-gallon price of gas in the United States is around $2.88. That means that in 2006, an hour at minimum wage will buy you less than 2 gallons of gas.
Back in 1968, the minimum wage was $1.60. The average per-gallon price of gas in the United States was around $0.25. So in 1968, an hour at miniumum wage would buy you 6 gallons of gas.
In 1968, a minimum-wage worker could buy more than 6 gallons of gas for an hour's work, and today, a minimum-wage worker can buy only 2 gallons of gas (actually, 1.78) for an hour's work.
That's the REAL world price difference.
Gas prices are NOT better than ever, no matter WHAT you adjust for.
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