Current Fuel Prices Are The Same As In 1980!

[afrank1971]

Okay, this ought to be an interesting discussion. What most people don't take into account when complaining about fuel prices is inflation, and the declining dollar. I came across this graph that put it in pretty good perspective. Assuming his data is correct, and I don't believe it to be too far off, we are giving up no more value today per gallon of fuel than we did in 1980. Okay, get your stones, and let me duck!! :-)

Historic Gas Prices

[afrank1971]

Okay, this ought to be an interesting discussion. What most people don't take into account when complaining about fuel prices is inflation, and the declining dollar. I came across this graph that put it in pretty good perspective. Assuming his data is correct, and I don't believe it to be too far off, we are giving up no more value today per gallon of fuel than we did in 1980. Okay, get your stones, and let me duck!! :-)

Historic Gas Prices

[MtManLee]

I could go along with that.

[Tom and Patty]

Even though I don't like the high prices the graph is seems likely correct.

I was discussing the other day, that when gas was $1.50 a barrel was about $40. now a barrel is $120 and gas is $4.00.

I still don't like it. 60 gallons was $252 the other day . P & J sandwiches for me!!

No stones from me .

[CoastieSCPO]

Very good comparison, and there will be no stones thrown from here. Only thing is this: In 1980, I was working and raising a family and only took trips on summer vacation or holidays. I had the ability to work overtime and make some extra money. Now, in 2008, we're retired living the good life and can hit the road anytime the urge hits. The big problem is that we're on fixed incomes and it is difficult to justify going into ones savings to put gas in the tank when we all know that the gas prices are a big rip off!

Bob

[Rocket Heart]

No stones - just no comparison. The impact of 2008 far exceeds anything I've ever experienced and that's been awhile. 7/18/1944 - present: seen a few recessions.

[NLOVNIT]

Interesting info. Still, it just kills me when, here, gas was $3.45 a gallon yesterday evening & then $3.75 a gallon this morning.

L-

[buckeyes]

I just heard on Fox News that by the year 2010, oil will be $200 a barrel. That means it will be about 7.50 - 8.00 at the pump. OUCH!

[NeilV]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by afrank1971:
Okay, this ought to be an interesting discussion. What most people don't take into account when complaining about fuel prices is inflation, and the declining dollar. I came across this graph that put it in pretty good perspective. Assuming his data is correct, and I don't believe it to be too far off, we are giving up no more value today per gallon of fuel than we did in 1980. Okay, get your stones, and let me duck!! :-)

Historic Gas Prices </div></BLOCKQUOTE>

Here is another way of looking at it going back a bit further than the chart. When I started working (before 1980) a bag boy in the super market got $2.75 an hour and gas was 25 cents a gallon so he could get 11 gallons of gas for an hours wage (11 gallons of gas = 1 hours wage). With gas now at lets say $3.50 that would mean a bag boy would be getting paid $38.50 an hour. If everything was even the I would expect that today a bag boys hourly wage would still buy 11 gallons of gas however I do not believe that a bag boy makes $38.50 today.

A more simplistic way of looking at it but I believe more realistic to the pocketbook.

Think back to what it was like before gas made that first big jump from 25 to 39 cents a gallon.

[tps0424]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by buckeyes:
I just heard on Fox News that by the year 2010, oil will be $200 a barrel. That means it will be about 7.50 - 8.00 at the pump. OUCH! </div></BLOCKQUOTE>

I don't understand why they would do that. Once they say that, people expect it and it goes there. It's a self fulfilling prophecy. People get conditioned that is where we are headed and then are not suprised or upset when we get there. I wonder what would happen if Fox news (or any of the news services) predicted an oil price bubble burst and prices would be $20 bbl and $1.20 gallon by 2010?

[J Walker]

The graphs can't be correct. The price of fuel has doubled in one year. Where is the 100% inflation to go along with that? Just because someone shows a graph don't abandon common sense.

[afrank1971]

Well, here is some more food for thought, let's look at the grocery bag boy example. Back in the day a grocery bag boy made $2.75/hour and could buy a gallon of gas for $0.25, extrapolating that out the bag boy would have to make around $40/hour if all things were equal. Well, maybe grocery bagging wages haven't kept up with inflation, but let's look at the national average wage. According to the Social Security Administration, the national average yearly salary in 1951 was $2,799.16, based on 2080 hour per year, that's $1.35/hour. In 1951, as best my research yields, the price of gas was somewhere between $0.27 and $0.50 per gallon. So, the average American worker had to work around 12 to 22 minutes to earn each gallon of gas. In 2006, the average yearly wage was $38,651.41, or $18.58/hour. So, even if wages did not increase or inflate from 2006 to present, which we all know they have, the average American worker today, at $3.50 to $4.50 per gallon, works around 11 to 14 minutes to earn each gallon of gas, doesn't sound much different to me, and also keep in mind that wages are in reality higher today in 2008 than they were in 2006 (SSA doesn't have data published for 2007 or 2008 yet).

[Tom N]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by NeilV:
Here is another way of looking at it going back a bit further than the chart. When I started working (before 1980) a bag boy in the super market got $2.75 an hour and gas was 25 cents a gallon so he could get 11 gallons of gas for an hours wage (11 gallons of gas = 1 hours wage). </div></BLOCKQUOTE>

When gas was 25 cents a gallon the grocery bagger made closer to 85 cents an hour. At least here in Pennsylvania. So, 3 gallons of gas = 1 hour of wages. Today that bagger would make ~$10 an hour which equates to ~3 gallons of gas. Gee, not much change in the purchasing power of a grocery bagger.

-Tom

[Tom N]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by J Walker:
The graphs can't be correct. The price of fuel has doubled in one year. Where is the 100% inflation to go along with that? Just because someone shows a graph don't abandon common sense. </div></BLOCKQUOTE>

Gas hasn't doubled in a year. I keep detailed gas records. 3/20/07 I paid $2.56 a gallon. 3/18/08 I paid $3.30 a gallon. Don't abandon the facts!

-Tom