Assuming the exchange rate was the same as when we left the gold standard in 1971 at $35/oz. Gas would be $0.092/gallon. 9 cents instead of $4.50. Gas prices aren't high, your wages just were left behind in the inflation. Math: $1700 spot price of gold $4.50 gas prices in my town. If the dollar was worth 1/35th of an oz, you could buy a gallon here for 9.2 cents. Other commodity prices since 1999: Steel is up 1000% Silver is up 800% Platinum is up 400% Sugar is up 550% Coffee beans are up 500% Wheat is up 300% Soybeans are up 300% Coal is up 500% Palladium is up 500% Rhodium is up 350% Sources: http://www.indexmundi.com/commodities/, http://www.kitco.com/charts/ Now, how much are your wages up since 1999? Census bureau says from $42,000 (http://www.census.gov/prod/2005pubs/c2kbr-36.pdf) to $49,500 (http://www.census.gov/prod/2011pubs/p60-239.pdf). How is that difference between prices and wages going to effect consumer spending? Lower demand. How is that resulting lack of consumer spending going to effect businesses? Still wondering why unemployment is at record highs? Why even the employed cannot afford their houses? (*)(*)(*)(*) republicans, (*)(*)(*)(*) democrats, (*)(*)(*)(*) anyone who supports fiat currency. RP 2012, sound money.
You have omitted the most important cost drivers: local, state and federal taxes! Local, State and Federal Gas Taxes Consume 45.9 Cents Per Gallon on Average
Because that simply cannot explain the 850% increase in crude oil prices in the past 12 years. Unless they are taxing us at 91%? All commodities are up, steel is up more than crude.
They are printing money to pay the bills.... The government must be stopped. They cant be allowed to continue to destroy America, so they can hand out freebees in exchange for votes..... [ame="http://www.youtube.com/watch?v=PTUY16CkS-k"]Quantitative Easing Explained - YouTube[/ame]
Gee, just over 10% gas taxes to pay for the greatest highway system in the world. A tax rate that hasn't changed in nearly two decades while inflation has doubled prices. The poor Conservatives of today are just so "put upon"!
Inflation doesn't matter one bit if you're actively seeking employee friendly policies and not corporate friendly policies. Inflation has only played a major roll in the past 30 years since Reganomics made is politically next to impossible to seek wage friendly policies. If wages continue going up inflation is not a problem AT ALL.
There's a number of reasons why corporations have grown and wages haven't For one, corporations are taxed on earnings and wages are taxed on income. This is so fundamentally different and everyone is oblivious to it. If corporations were taxed on income they would cease to exist. Their value of the dollar is less than a employee's value of the dollar, because the employee is broke and the corporation isn't. Ironically, if it weren't for the inflation and wealth inequality resulting from a from an income tax (most rich get taxed on capital gains) and the inflation of fractional reserve lending. We wouldn't even need the benefits that we use the revenue on. It's necessary, because it exists. Like a mechanic that puts bolts in your intake. And two, corporations simply get more loans than people. All the money that is created is created through loans to corporations and housing (housing bubble anyone?). And corporations are not taxed until after they pay off their debt, people are taxed before they pay off their debt.
