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Gas Was More Expensive In 1960’s

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Liberals won’t want to hear it but gasoline was more expensive in the 1960’s. The Los Angeles Times has the collaborative explanation by Indur Goklany, author of “The Improving State of the World: Why We’re Living Longer, Healthier, More Comfortable Lives on a Cleaner Planet” and Jerry Taylor, senior fellow at the Cato Institute.

After studying the average yearly price of gasoline from 1949 to 2007, and assigning the number “1” to the ratio in 1960, we found today’s prices comparable to what they were in 1960 (1.35 today to 1.00 in 1960, with a high of 3.32 in 1998). The higher the gasoline affordability index figure, the lower the price of gasoline relative to disposable income.

Consumer anger about rising fuel prices has taken a while to build because, until the last year or so, the increases could be shrugged off as natural year-to-year price variation. Moreover, pump prices still seemed relatively cheap given increases in personal wealth. Personal disposable income since 2000, for instance, has increased by an average of about $4,800 a person. Those very real increases in economic well-being reduced the pain of higher prices at the pump. People didn’t notice that real gas prices were higher because the percentage of their income going to the gas station was at an all-time low until recently.

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Written by smalltalkwitht

August 12, 2008 at 11:01 pm

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