The Conservative Cave
Current Events => Economics => Topic started by: franksolich on August 12, 2008, 01:43:01 PM
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http://www.latimes.com/news/opinion/la-oe-goklany11-2008aug11,0,1107249.story
Oh my.
This probably hasn't hit Skins's island yet.
A big surprise on gas
You may not believe it, but fuel is more affordable than it was during the early '60s.
By Indur M. Goklany and Jerry Taylor
August 11, 2008
Barack Obama thinks the government should intervene on gas prices to "give families some relief," and last week called for releasing 70 million barrels of crude from the Strategic Petroleum Reserve. John McCain proposes an end to the ban on offshore drilling and has pushed for a gas-tax holiday because "we need it, we need it very badly."
But both candidates and the public are evidently unaware of a basic fact: Gasoline is more affordable for American families now than it was in the days of the gas-guzzling muscle cars of the early 1960s. Prices are beginning to come down somewhat, but this was true even when the national average was at its summer peak.
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.
It sounds like a whole lot of economicspeak--meaning the primitives won't understand it--but it makes sense to me.
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3.85 sure feels like more than 2.00, are they saying in 2002 the affordability ratio was 0.48?