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Mr 5 0 · 04-14-2002, 04:43 PM

PKRWUD:

You're right about the misconceptions regarding gas prices.

I've read that 40 years ago (1962) regular gas was about thirty cents per gallon. Ah, the good old days, right? Unfortunately, the minimum wage was about $1.20 or so, and it took an hours (minimum wage) pay to buy four gallons of gas.

In 2002, the minimum wage is, what? About $6.00 per hour. Gas is about $1.50 per gallon. Four gallons of gas equals one hours minimum wage pay. Just like in 1962. It's all relative.

Difference is, a big, heavy 1960's car with a big engine got about 12 miles per gallon. A late-model Mustang gets about 18 average and most Hondas and Toyotas get well into the high 20's mpg so we use a lot less of that expensive gas than dad or grand-dad did in his 1959 Chevrolet Bel Air with a 348 V-8 getting 12-14 mpg or the guy with a new 'hot' Pontiac Bonneville 421 getting 10 mpg.

Gas companies are no saints but the constant accusations of 'gouging' every time the price of gas goes up gets old. There have been many, many congressional and Justice Department investigations into the price of gas and every single time it turns out that there was no 'gouging' or anything illegal. Just market forces at work and good business practices that keep the companies profitable.

Everything goes up.
You want a raise every six months, right? I do. Well, oil companies -and any company - has to eventually raise prices to accomodate that necessary expense of giving raises, along with everything else it takes to stay viable in a very competitive business.

Taxes are another factor.

In my state (CT) the state and federal taxes add 57 cents to every gallon of gas. Think about that: 57 cents! That means that when gas is, say, $1.41 a gallon (current price here for 87 octane) taxes add 57 cents to the price so without the taxes, a gallon of gas would cost 84 cents per gallon!

Feel better yet?

As I said, gas companies are no angels, they're a business and need to make a decent profit but when you look at how much taxes add to the price, what gas actually costs before taxes and that a gallon of gas costs almost the same portion of your income as it did forty years ago as well as being far, far cheaper in the U.S. than anywhere else in the world (almost), then it puts the price into perspective a bit better and all the howls about 'rip-off's' and 'price gouging' sound a bit hollow when exposed to the facts.

Hey, who wouldn't like to buy gas for twenty cents a gallon but that isn't reasonable, no more than buying a new car for what it cost 40 years ago ($2800.) is reasonable.

The price of gas isn't cheap but it's within reason. That's about as good as it gets.

04-14-2002, 04:43 PM	#15
Mr 5 0 Conservative Individualist Join Date: May 1997 Location: Wherever I need to be Posts: 7,487	The price of gas PKRWUD: You're right about the misconceptions regarding gas prices. I've read that 40 years ago (1962) regular gas was about thirty cents per gallon. Ah, the good old days, right? Unfortunately, the minimum wage was about $1.20 or so, and it took an hours (minimum wage) pay to buy four gallons of gas. In 2002, the minimum wage is, what? About $6.00 per hour. Gas is about $1.50 per gallon. Four gallons of gas equals one hours minimum wage pay. Just like in 1962. It's all relative. Difference is, a big, heavy 1960's car with a big engine got about 12 miles per gallon. A late-model Mustang gets about 18 average and most Hondas and Toyotas get well into the high 20's mpg so we use a lot less of that expensive gas than dad or grand-dad did in his 1959 Chevrolet Bel Air with a 348 V-8 getting 12-14 mpg or the guy with a new 'hot' Pontiac Bonneville 421 getting 10 mpg. Gas companies are no saints but the constant accusations of 'gouging' every time the price of gas goes up gets old. There have been many, many congressional and Justice Department investigations into the price of gas and every single time it turns out that there was no 'gouging' or anything illegal. Just market forces at work and good business practices that keep the companies profitable. Everything goes up. You want a raise every six months, right? I do. Well, oil companies -and any company - has to eventually raise prices to accomodate that necessary expense of giving raises, along with everything else it takes to stay viable in a very competitive business. Taxes are another factor. In my state (CT) the state and federal taxes add 57 cents to every gallon of gas. Think about that: 57 cents! That means that when gas is, say, $1.41 a gallon (current price here for 87 octane) taxes add 57 cents to the price so without the taxes, a gallon of gas would cost 84 cents per gallon! Feel better yet? As I said, gas companies are no angels, they're a business and need to make a decent profit but when you look at how much taxes add to the price, what gas actually costs before taxes and that a gallon of gas costs almost the same portion of your income as it did forty years ago as well as being far, far cheaper in the U.S. than anywhere else in the world (almost), then it puts the price into perspective a bit better and all the howls about 'rip-off's' and 'price gouging' sound a bit hollow when exposed to the facts. Hey, who wouldn't like to buy gas for twenty cents a gallon but that isn't reasonable, no more than buying a new car for what it cost 40 years ago ($2800.) is reasonable. The price of gas isn't cheap but it's within reason. That's about as good as it gets.