Photo courtesy of Andrew Baron
First, we need to take into account inflation. As for gas prices, in 1950 the price of gas was approximately 30 cents per gallon. Adjusted for inflation, a gallon of gas today should cost right at $2.64, assuming taxes are the same. The tax per gallon of gas in 1950 was roughly 1.5% of the price. Today, federal, state, and local taxes account for approximately 20% of gas’s posted price. Taking inflation and the increase in taxes into account (assuming no change in supply or demand) the same gallon of gas that cost 30 cents in 1950 should today cost about $3.13.
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April 23rd, 2008 at 3:52 am
I came across your blog on Technorati. Nice site layout. I will stop by and read more soon.
Mike Harmon
April 23rd, 2008 at 5:27 am
[…] Old People’s News.Com wrote an interesting post today on Economics 101: The Price of GasHere’s a quick excerptFirst, we need to take into account inflation….Taking inflation and the increase in taxes into account (assuming no change in supply or demand)…Today, federal, state, and local taxes account for approximately 20% of gas’s posted price…. […]
April 23rd, 2008 at 2:56 pm
Thanks for your comment, Mike. It’s appreciated.