Gas Prices?

SW Wisconsin is still a $3.09/gallon.

FDR

TheFamousGrouse wrote:

Absolutely right. I read in a car magazine article a few years ago that if gas had only kept pace with inflation since 1960, it should now cost about $7 per gallon. Event taken as a percent of average income, gas was far more expensive (relative to wages) in the 1960s than it is now.

You read this in a magazine article a few years ago? Reading an article in a magazine and believing it, is like believing what you read on the internet and believing that is true also? You may be right that gas (relative to wages) was more expensive? Who knows? How about the rest of the items we purchase and how do they compare? Could you imagine $7 gas in our economy now and from the article you read that was a few years ago. What would the price of a gallon be now? If anyone thinks that the manipulation of fuel is not a way to control the people, and what they do they should think again.

In 2013 dollars, gas was only $2.00-$2.50/per gallon in the 60s, not $7.

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Don’t over look geo-political factors. I read that the Russian economy goes into the red, (pun intended), when oil drops below $100.00/barrel. Well, some nations are pissed that Russia is aggressively annexing the Ukraine. Can’t do anything militarily, but economically? Remember how the Wall came down ending, (pausing), the Cold War.

WinnebagoViking wrote:

In 2013 dollars, gas was only $2.00-$2.50/per gallon in the 60s, not $7.

You’re misreading my post. What I said is that if gas prices had KEPT PACE with inflation since the 1960s, it would NOW cost around $7. I’m going from memory on these figures, the article was in Road & Track 5-6 years ago when we had a big price run-up.

Your graph confirms the points in the article. When adjusted for inflation, gas prices all through the 2000s were on par with 1960-70s inflation adjusted prices.

Grouse

You’re correct, I did read your post incorrectly. Nevertheless, the $7 figure is off. Using a 1965 gas price of $0.35/gallon and plugging it into the BLS calculator (http://www.bls.gov/data/inflation_calculator.htm) shows that, had the price of gas followed the CPI from 1965-2014, a gallon would be about $2.65 today.