Gas prices, dealer humor and your household budget

I just paid 2.70 yesterday. Ridiculous indeed. Excuses? Sorry, we need new negotiators and alternative sources.

 

FYI, gas is now cheaper than it was in 1950 . For example, in 1950 the average wage of an American production worker was $1.44 per hour and gas averaged $0.27 per gallon. So, you could buy 5.3 gallons of gas with an hours wage. Now, the average wage of an American production worker is $17.30 per hour and gas averages $2.75 per gallon. So, you can now buy 6.2 gallons of gas with an hours wage. And, that doesn't even take into account how many more miles per gallon you can drive with a gallon of gas with a modern car.

 

I drive 110~120 miles a day.... It's painful to go to gas stations these days...
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I bet the commute distances have DOUBLED since that time though. Something to take into account.

 

You should try living in Europe....

 

Yes but everything now is cheaper to produce also. I bet long distance, airfare, was much more expensive in today's dollars than 1950.

They can produce oil, with new tech 500% cheaper than they could produce it in 1950. This is all a bubble. Today, I was talking to someone that is in oil and very happy he is. but even he said it should be around $35. he is loving every minute of it. were being scammed!

 

Just because he's working in the oil sector doesn't mean he's an expert on price.


http://www.economist.com/displaystory.cfm?story_id=4321834

 

Gas gripes: readers speak up
Readers weigh in on how rising prices at the pump have taken a toll on their lives.
August 25, 2005: 10:32 AM EDT

NEW YORK (CNN/Money) - To cope with rising gas prices, some people are driving less -- or changing vehicles.

Some are cutting back elsewhere in their budgets. Some are taking more drastic measures.

And with gasoline rising to an average of about $2.60 a gallon -- and oil prices staying high -- it doesn't look like prices at the pump will retreat anytime soon.

CNN/Money invited readers to write in and share stories about how they are coping.

Below are Thursday's selections. (See gripes from Tuesday and Wednesday.)

It's about the music, man..."I am in a band that just got signed to a independent label and we are about to start touring. Because gas prices, if we don't sell merchandise, we don't eat." -- Tavis W.

Cutting back on EVERYTHING..."I've done the following: quit eating out; wearing anything that needs dry cleaning; I'm doing my own hair; canceled the newspaper subscription (I read it online); not renewing any magazine subscriptions; had the "home" phone turned off, just using my cell phone (cut back on minute plans)....whatever it takes!!!" -- Mel

A new thief in town..."Recently I received a call from my credit card company to report a number of fraudulent charges. Can you guess what the thieves charged? Gasoline, of course! Go figure!" -- Carol C.

Brown bagging..."I used to spend $7 per day for lunch or $35 per week. Now I take lunch to work and it costs about $3 per day ( $15 per week). The extra $20 savings is shifted to the tank. I'd rather put that savings into my 401(k). Also I stopped going to Starbucks and lowered my Lottery ticket purchases." -- Mark S.

Extreme measures...? "I've had to switch from Charmin to newspaper." -- Stacey

Trading down..."I traded in my BMW for Nissan Altima 2.5S because gas prices are making me sick to my stomach. I'm from Yonkers, N.Y. and finding a gas station with the lowest price is like striking gold. If I find one, it's just funny how reality bites: Porsche, BMW X5, Ford Mustang, Mercedes are all lined up for the cheapest gas station in town!

Loving the bug..."I am doing quite well with gasoline prices at record levels. More than two years ago I purchased a 1974 VW standard beetle with a 1600CC engine in anticipation of rising gas. My daily round trip commute is 52 miles and I get 36 miles to the gallon with my bug. My cost for filling up the fuel tank is $21. FYI: I sold my gas guzzler on 8/1/05." -- Max D.

Walking off the job..."Because of the rise in gas prices I had to leave my job. I worked on the east side of Detroit and lived about 85 miles away. I have had to make the decision the leave a good job to look for local employment that probably wont pay more than $9 an hour. Also because of the gas prices I cannot afford to drive to and from college so I have chosen to take all online classes, which is a big disappointment. -- Justin E.

Check back for more reader responses. And send us your story at [email protected].

 

But, if you were to adjust that $6 to today's prices...

 

....followed by the requisite, $2 "Stick in your d.ick" doctor visit!

 

People are hurting, the reality is the same gas price increase shock caused a recession in the mid to late 70s til the 80s, the same can happen now.

In the 50s most households had 1 car maybe, we had no interstate freeway system compared to now nor inner city freeway system, people are much more dependant and mobil now compared to the past, the U.S. needs its cheap gas.

 

That point's tackled in the Economist article.

I'll agree with that. What the U.S. needs is less gas guzzling cars on the road. But, I believe in a free market system and as people get fed up they'll stop buying the SUVs, Minivans and get into things they can afford to run within their already outstripped (mortgage, or second mortgage, car payments, CC bills, ever increasing college tuition...) budgets.