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Comparing Apples to Apples.
In 1995, gallon of Gas was $1 to $1.16.
In 1995, Minimum Wage per Hour is $4.25.
In 2012, Gallon of Gas is $3.87 to $4.25.
In 2012, Minimum Wage per Hour is $7.25.
In 1995, Gallon of Gas to Minmum Wage hour is 1:4 Ratio.
In 2012, Gallon of Gas to Minmum Wage hour is $4:$7 Ratio.
Inflation shows from 1995 to 2012 should leave Gallon of Gas to Minmum Wage hour ratio to $4:$16 Ratio.
Thats right, if you go "INFLATION", Minimum Wage should be $16 per hour. Where is it at? Less than half!!
What are your thoughts on that?
Gas prices are caused by a complex equation of variables some of which we have no control over and others we do: Global Demand, Speculation, Oil Company margins, good old government taxes on each gallon of gas, behavior modification policies supported by environmentalists, and our appetite for drilling domestically on private and PUBLIC lands. As I understand it, private land drilling is humming along just fine but we are drilling on a small percentage of public land that has the potentail to produce large volumes of oil.+
Ironic that you should use the Apple pay out in this article, since most of their products are manufactured in China. Low cost merchandise; sure. But at what cost to our American work force. Go ahead, embrace Apple, and say what a great company it is; enjoy their products; marvel at them. But please keep one little fact in hand at all times, and that is where most of them are made and what was paid in wages to produce that product. At least you can feel a little guilt in all this can't you?
Oil/fuel/gasoline is energy. Plain and simple. Our society needs it to survive. Other forms of energy, the natural gas, the electricity we use are regulated. Spiking fuel prices and the abuse of speculators feeding on global instability rumors can have and have had a devastating effect on our economy. To prevent this we do need regulatory authority and controls over fuel prices to prevent these abuses. Just as we haveo with natural gas and electricity. Your argument granting sainthood to higher fuel prices and those responsible as set forth in this article rings hollow to me.
I agree that gas prices are not always evil. However, you ignore the main reason for today's surge in oil/gas prices: the sabre-rattling for war with Iran.
This sentence makes no sense: "oil companies have huge fixed costs, so only a fraction of those higher prices trickle down to the bottom line." Yes, their profit margins are slim. But high fixed costs mean that every cent increase means a full cent profit for the oil companies!
It looks like the one thing the author misses here is that OPEC is an oligopoly - they regularly control output, thus simply affecting the "supply" part of supply and demand.
fishanhunt2 , I believe Natural gas is not regulated - I could be wrong ?
High gas prices reduce the real wealth of more than half the citizens in this country. We seem to ignore that when we talk about the benefits of alternative fuels that become more financially viable when gas prices are higher. When we look at the economic growth of the 1980's, many focus on Reagan's tax policy, but allowing the oil markets to work eventually created abundant supply and low cost energy, one of the most important ingredients to strong economic growth. The current high cost of gas is the result of bad policy for more than 20 years...President Obama is not the cause, he just makes it worse.
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