Gas Price Hike Is "Officially" Worse Then 1980's!!

Gas prices: Worse than '81 oil shock
Gas now at highest level, even adjusted for inflation; AAA's reading of nearly $3.20 a gallon marks ninth straight record high in current dollars.

WOW.

The panic that was done in the 1980's because of the gasoline price hike was huge. Where is it today?

This is an INFLATION ADJUSTED comparison, right now with the dollars worth, gas prices have exceded a historic all time record, surpassing the 1980's oil shortage, a prediction made years ago that if it would happen, our economy would be falling shortly thereafter.

While gasoline had already been in record territory in current dollars, Trilby Lundberg, publisher of the survey, said this is the first time that her survey topped her 1981 record high when adjusted for inflation.

The price of $1.35 in 1981 works out to $3.15 in current dollars, she said. The Iran-Iraq war, which started the year before, choked off oil supplies to the global market, causing that spike in prices.

The Energy Information Administration's latest pump price, when adjusted for inflation, also reached a new peak. The EIA said Monday the average price for regular unleaded gasoline soared 11.5 cents over the past week to a fresh record of $3.22 a gallon, the all-time high fuel cost reached in March 1981.

Currently the American economy is slower and slower, corporate profits are at all time historic highs, and personal income growth is at 20 year lows.

The housing market was weak and unstable, and news like this could be pushing it over the edge even further, and with it loss of equity in the billions, coupled with a slowing economy, higher gas prices, an economic decline could be in our future.

Topping post-Katrina records

Before this recent run of record-high gas prices, the highest price ever recorded in current dollars was $3.057 in the AAA survey, which was set Sept. 4 and Sept. 5, 2005, in the wake of Hurricane Katrina. That storm disrupted refinery operations and pipelines and caused a temporary spike, sending prices above the $3 mark for eight days.

The only other time that the AAA national average has topped the $3 mark was in August 2006, after Israel invaded Lebanon and oil futures shot higher. Gas prices then reached as high as $3.036 during that 19-day spike.

CNN Source

What do you say? Is this the beginning of another decline, possibly recession or depression? .. Or can the stretched, full of debt, no savings, low income growth Middle Class wade through it.

Gas prices are expected to continue rising throughout the summer. Some are predicting a $3.50 average.

We are more able to handle this now than then!

Interest rates are resonable, compared to the 17-18% prime rates of the late 70's early 80's. Unemployment now is around 4.2% compared to over 10% then. And I don't think we are even close to having gas lines and rationing like they were doing back then.

I think we will be OK!

"ok" yes. however gas companies are projected to make another round of record breaking profits this quarter.



OK

sure, we will survive, but are we being pinched for every extra penny we have?

Originally posted by RRconservative
We are more able to handle this now than then!

Interest rates are resonable, compared to the 17-18% prime rates of the late 70's early 80's. Unemployment now is around 4.2% compared to over 10% then. And I don't think we are even close to having gas lines and rationing like they were doing back then.

I think we will be OK!

This seems like bad news for the US economy, until one considers the following.... Higher oil prices affect developing countrys alot more then developed ones like the US. Countries that many fear will overtake the United States, such as India and China, have economies even more dependent on oil than the US. Sectors like automobiles, steel, aluminum, airlines, and concrete are actually growth industries in India and China, where the majority of people are yet to become consumers. Its simple.. We earn more money then they do...

At the same time, US corporations such as Google, Yahoo, Goldman Sachs, Pixar, Citigroup, or Oracle are much less vulnerable to high oil prices. Yet, these knowledge-based businesses are the ones that have created most of the new wealth in the US during the last 25 years, and are the industries in which America's dominance over the rest of the world is the largest.

So long story short higher oil prices affect china and india more so then the US. WE'RE FINE

An update!

Average price has passed a national average of 3.50 a gallon. The same they predicted yesturday by mid summer occured in less then 24 hrs. Predictions are shakey at best, some are saying it will fall this summer, some are now predicting $4.00 average.





I am honestly speechless. This is, by all means, robbery, THIS IS TAXATION WITHOUT REPRESENTATION!

The oil companies rape our wallets, and come out with hundred in billions in PROFIT after expenses, and the GOVERNMENT gets 50% of it (excess profit tax) ..... sounds to me like the American people are being financially raped to fund the expenses of the Federal Government.

How far will the middle class be stretched? I hope when it snaps the ones on top suffer dearly, and severely.

Thanks, Rockpuck, for the news. I wondered when this would happen.

Yeah, no long gas lines this time...none needed. Of course, back then someone came out not only to pump my (.25/gal) gas but also wipe my windows and check my oil and tire pressure. And if I needed it, a mechanic there would fix a flat or change a belt. Now, to stay in business, gas stations have become minimarts.

Let's see...we're gonna be OK if we continue to not have savings; refinance our house or take out a 50-year or interest -only mortgage to afford a new one; take out a 6 yr loan on a car instead of a 3 yr (common back then). Oh, yeah, another thing common back then was affordable health care; so we'll be OK, as long as we don't have to see a doctor. Lost your job during the '70's oil crisis?--you found another 40 hour/week job with benefits, not 3 minimum wage jobs w/o benies to earn a living; minimum wage jobs were for teens.

Stretched thin is right. More like being brought to a boil as in the lobster pot.

As someone who lived through the CA "energy crisis" a few years back, watching Enron tv ads here saying what a great company they were for us, I'm just a little cynical about this "gas crisis". Yes, we'll be taken for every penny. Hey, the money we're saving buying cheap Chinese goods and hiring illegals has been up for grabs...and look who's grabbing.



[edit on 28-5-2007 by desert]

Just think about us poor brits. We are close to £1 a litre. $1.97 a litre of regular gas.

I was annoyed when in Florida in April having to pay almost $3 a gallon. A fill up was $50.

For us, we pay almost 50% of the price of gas as tax to the Government

Our economy is much more energy efficient now than it was 27 years ago.

We get a lot more GDP per barrel used now.