In real terms, Americans are now paying as much or more for gas today as they were during the worst days of the oil-supply crunch after the Iranian revolution.

Not entirely convinced you know. 1979 you had gas rationing I think. Thus Americans were paying huge amounts in lost time as they queued for gas. That doesn\’t happen now so I think it could be said that while sticker prices, adjusted for inflation, are about the same, real costs are not.

3 thoughts on “Sasha?”

  1. It is my understanding that, per unit of GDP, the oil derived component is only half what it was in 1979.

    This must also have a major effect on the impact of any price changes.

  2. No, the US has not had state-implemented gas rationing since WW2. A scheme for rationing was designed in response to the 1973 oil embargo, and coupons for it were printed, but never put into use.

    There were shortlived measures to try and even out demand, such as the license-plate-vs-date system, but these did not ration or limit purchases, merely the days on which they could be made. These had all lapsed by 1975.

    What rationing there was was entirely market-based.



  3. That’s crap on a number of levels, chief among which are that a) the typical vehicle will go a lot further on a given volume of fuel than 25 years ago and b) real incomes are so much bigger today compared to then that as a proportion of people’s budgets fuel is cheaper than ever. It wouldn’t surprise me if the price of a mile of driving (which is after all the desideratum in question), counted using a purchasing power figure, were a third or less of what it was in 1980.

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