We’re all atwitter about gas costing $4/gallon. The major network news shows this morning have all covered it. They and much of the rest of the media are hyping it as this awful terrible thing that will ruin our country. President Bush MUST open up the strategic petrol reserves to help bring prices down. We MUST increase production from our own fields.
In 1976 gas was about $1/gallon. Based on standard US inflation it should now be about $3.85/gallon. $4/gallon or even $5/gallon is well within a reasonable tolerance of inflation. Just for comparison, an in-call escort has risen at almost twice the rate of inflation – in 1976 she charged $40/hr yet today she gets $300/hr. Gas would be $7.22/gallon at that rate.
If only our Federal Government Spending had increased the same as gas. In 1976 we spent $371 billion. In 2007 we spent $2.8 trillion. If gas had risen as fast as our politicians spending it would now be almost $10/gallon.