HOW MUCH DID A GALLON OF GAS COST IN THE GOOL OLD DAYS?

WOYKE (2005) BUSINESS WEEK, 9/12/ 13

It is not so easy to calculate how much a gallon of gas costs in any one time period. However, one of the best ways is to use adjusted dollars. That is how yesterday’s gas costs when adjusted to 2005 dollars.

Our search starts with 1920’s when gas was about $3.00. By the 30’s it was $2.25 per gallon. It costs $2.60 in the 40’s and $2.10 in the 50’s. By the 60’s, it dropped to $2.00, and the 70’s $1.75 per gallon. After the oil embargo and high gas prices, people started tipping their gas tanks with just enough to fill it and get the lowest prices. By 81’ it was $3.00 again. By the late 90’s, it was just $1.25. By the mid 2005, gas is now climbing to $2.75 and at the moment this is being written, some have reported $4.00 a gallon because of Katrina Hurricane. The 20th century was the time of the sweet crude that was easy to get and refine. Now comes the hard part of getting theoretically the second half of Hubert’s peak. This should cost more to get and refine.

Now let’s look at family income. The median in 2005 is $44,000. Wages have stagnated for years. Taxes have become regressive. In 1975, the median and wealth income was greater for the middle. Further of cost of living does not include ENERGY like gasoline.
The greatest divide came after 1980 to the present. Intra-generational mobility has flattened since the early 80’s, so it would appear that the time when gas was a great buy is the early 70’s and in the tech bubble of the late 90’s. Further, when gas per gallon is visualized in the 30’s in unadjusted dollars, the average take home pay was $5.00 a week.

Using unadjusted dollars, I remember paying 29.9 per gallon in the early 70’s. That is a bargain. Don’t plan on that any time soon.