Tuesday, August 16, 2005

Adjusted for the Here and Now

I've been waiting for years to buy a brand new cadillac
But now that I've got one I want to send it right back
I can't afford the gas to fill my luxury limousine
Ray Davies, lead singer for the Kinks, “Gallon of Gas”

Retail gas prices hit another record high over the past three weeks, mirroring a rapid increase in the cost of crude oil, according to Lundberg survey.

Consumers are turning their pockets inside out or adding more debt to their already over burden credit cards as the average price of all three grades rose nearly 20 cents. Do you realized that if all the stars aligned perfectly it would take months for gas to come down by 20 cents a gallon. But today, if the crew chief on an oil derrick has the flu, we can expect to suffer right along with the ill chief from our wallet’s point of view.

The biggest cop out that reporters and analysts use is that $2.53 is not adjusted for inflation. Well, I have news for reporters and the like, my paycheck is barely adjusted for the here and now.

I suspect however, that the oil executives’ bonuses are adjusted for inflation as they hold their umbrellas upside down to collect the windfall of cash.

(the gas prices pictured would be a relief as So. Calif pays pennies short of $3.00 a gallon)


Stephen (aka Q) said...

In Canada, we're up to a dollar per litre, which works out to $3.75 per US gallon. Of course, that's Canadian dollars, which are worth less than the greenback.

I certainly regret the negative impact of high oil prices on the economy. But there are a lot of SUVs and pick-up trucks on our city streets, and I won't be sorry to see them go.

I remember the energy crisis of the 70s, and people switched to energy-efficient cars. It just about killed the American automobile industry. People must have more disposable income now, or they'd switch to smaller cars, like they did then.

The Misanthrope said...

Q, The smaller more fuel efficient cars are expensive to buy. Trading in a car for a smaller car will not bring the financial savings to make the deal worth while.

I heard the news reporter this morning say that "the government's latest excuse for rising gas prices was..." While I thought that was shoddy reporting inserting editorial comment, I agreed with her 100 percent.

I just wonder if prices would be so high if this White House gang weren't in bed with the oil companies?

Jack's Shack said...

Gas is getting to be ridiculous. I am really disgusted by this.

Rags said...

Just to add a little more to the mess, it now appears that while gas prices go up, Bushco won't do anything sensible to get people to buy more fuel-efficient cars. After all, that might force the Big Three automakers to actually build them.