Over the last few years as the price of gasoline steadily crept upward, most Americans tried to modify their lifestyle to cut down on these rising costs. Some people began to carpool, some purchased more fuel-efficient cars, some began to plan their trips better or ride bikes or walk for short trips.
Now that gas is down around $2 or even below, have you reverted to your old bad habits? Do you slam on the gas again when the traffic light turns red? Or have you maintained these gas-saving habits you picked up when gas was high? Do you think the mindset of Americans has changed for good, or will it fluctuate with the price of gas?
Just finished looking at Websters on-line, my bad.
It's: Inauguration
I didn't want to cause any damage if we have young readers.
Bubo
Just finished watching the Inoguration and took a second look at my numbers, corrected below.
Govt Employees
1939 = 4.134 million
2008 = 22.514 million
Increase 445%
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Census Bureau
US Population
http://www.census.gov/popest/archives/1990s/popclockest.txt
July 1, 1939 130,879,718
July 1, 2007 301,290,332
Increase 130%
Yes I am one of those people that owns an H3. The vehicle was purchased to pull a sailboat. I also own a Yaris ( 35-40 mpg)which is the primary vehicle that we drive for errands and any long distances. Gas is an expense so we have always tried to watch our usage.
Bureau of Labor Statistics
This is the Kink Solomon's mine for data.
The BLS uses all available data, the data has different start dates.
Average, all Private Wages in 1982 dollars, I believe this is pre-tax.
1964 = $302 per week
2007 = $282 per week
Increase -6.6%
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BLS
Government(s) Employees
1939 = 4.134 million
2008 = 22.514 million
Increase 545%
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Census Bureau
US Population
http://www.census.gov/popest/archives/1990s/popclockest.txt
July 1, 1939 130,879,718
July 1, 2007 301,290,332
Increase 230%
"By Anonymous on January 19, 2009 9:59 PM
Commodity prices relative to wages have done nothing but drop over all of recorded history. There are short term hiccups but they don't last long. I expect energy (a commodity) prices to continue there long downward trend forever."
Anonymous,
Go to the Bureau of Labor Statistics
Consumer Price Index @
http://data.bls.gov/cgi-bin/surveymost?ap
You can select individual or all of the CPI components. When you do this select the max data range available 1978-2009 and the graph option.
What I see are 17 graphs showing geometric growth on a few and exponential growth on the many with the USA in the hockey stick upswing phase. In current dollar terms the inflation is substantial.
If I'm bored with nothing to do, I may download the raw data and try deflating it vs what? Gold, M1, M2 etc, I forget is M4 everything?
I'll see if I can ferret out the median wage data to see where it leads us.
We can also look at things like the cost of construction per square foot for residential but its hard to tell how much of that is construction inflation and how much is inflation caused by lawsuits/insurance and government regulation.
This could give us median wage divided by cost per square foot for affordability; my guess is that 40% of the cost increase is for the leaches.
If you know someone that has already run the numbers please tell me where I can find the processed (sourced) data.
Commodity prices relative to wages have done nothing but drop over all of recorded history. There are short term hiccups but they don't last long. I expect energy (a commodity) prices to continue there long downward trend forever.
Gas prices back to normal? I don’t know where you purchase your gas, but all I’m seeing are pump prices going up and up at the same time the price for a barrel of crude is going down. Remember when gas was in the $1.50 range last year. Have you purchased a quart of motor oil lately? Yes, it’s still near $4.00 a quart and has not gone down in price. Unfortunately motorist is still being gouged.
You know maybe it is just me...but I don't think so...I think there are so many other problems with the economy now that even $2.05 for gas is still a problem. It is just one of many ways to keep everything in check. I know I still consolidate all my errands or wait until I have several. Of course the weather is nasty, lets see what happens with summer and how the economy is then. Look at how many take vacations, where, how many local activities they do etc. Take a look at if Victoria Secret has sales at Valentine's Day! HA! Then you know the economy is in trouble! You guys should shop now, you do know there is not one sale sign up when they know you are coming in the store then! The price of roses would be interesting to see. Oh & if Spring Break starts to get be effected...HA...then you know we are in trouble! :-) If the porn industry is asking for a bailout then you have to wonder!
EXTRAORDINARY TIMES CALL FOR EXTRAORDINARY ACTIONS
Anonymous,
I won't recommend a place to purchase. There are several ways to do it:
1. Buy gold stocks where the gold is kept somewhere else. There are reputable firms that do this. Worst case, make sure it’s outside US jurisdiction, like Switzerland.
2. Buy the coins and put them in your safety deposit box if you think the FEDS will be able to resist searching the boxes when times get tough. The coins can be purchased from local coin stores that you can check on with the BBB or from reputable dealers over the internet. If you don’t want a computer trail, pay in cash.
3. Bullion is a bit cheaper, but less likely to be accepted than a recognizable gold coin. Krugerrands and Maple leaves are two of the best known.
FDR, our last savior, confiscated all private gold and forced people to accept paper fiat money in exchange the last time around. This was unconstitutional, of course, but "extraordinary times call for extraordinary actions". Expect to hear this phrase a lot as the FEDS begin to operate even further outside the Constitution than they normally do. This is the flexible-constitution argument, aka your rights are what we say they are not what the written words on the paper say they are. Sounds like a monarchy.
If you want to think in the cataclysmic terms, a gold coin equals a ticket out of the country and maybe an entry visa into another country, a hotel for a week etc. DuPont fleeing the French Revolution is a good story.
For small stuff, circulated recognizable silver coins in reasonable condition will buy a loaf of bread or a tank of gas. If you don’t mind paying a small premium you can buy new minted silver coins just like the gold ones that anyone will accept on face value of 1 OZ.
If I were smarter, I would have converted my entire net worth to Euros five years ago like the big boys did; then converted some of it to gold when gold was still hanging around $400. I have long time friends that made a killing on the conversion to Euros vs. the dollar; they are keeping their Euro positions meaning they think the dollar will drop again. Once the FEDs have finished tanking the US economy; buying US companies and assets will be dirt cheap in Euros etc, this is one explanation for the capital flight we have experienced. Obama’s economic plan is the same plan as Bush, print money. WOW.
Watch the European leaders on TV lately? They are making a lot of noise (bordering on desperation) about getting away from a dollar-based-world-economy, translation finishing off the Breton Woods agreement. Why, they don’t want to get sucked under on the next collapse driven by the USA first deflating with the bubble pops then (hyper) inflating with the money the FEDS are churning out of the printing presses as we speak.
Google: Gold Coins for sale, following are a few of the sites that will pop.
http://www.monex.com
http://lynncoins.com
http://www.coinnews.net
Bubo,
Where is the best place to buy Gold?
Hyper inflation 2009
Q.
Do you think the mindset of Americans has changed for good, or will it fluctuate with the price of gas?
A.
The American people have probably learned their lesson as fuel efficient models are still selling.
On the other hand, the Feds are putting the pedal to the metal with spending that may finish off the value of the dollar.
The value of the dollar has declined by 95% since 1974 with half of the loss in value over the last eight years. Gold ran up from $35 an OZ to $800 recently as did the price of everything else.
When the dollar goes into another round of collapse, the price of gas will probably end up in the range of $3 a gallon while we are still in stagflation.
If hyper-inflation set in, which becomes more likely every day with the accelerating Federal Bankruptcy, then all bets are off. The FEDs have pumped out $7.5T since the social-engineering-credit-bubble started to collapse, and we still haven't hit peak (2.6M in the pipeline) foreclosures.
I'll have to check in on the Bureau of Labor Statistics to see if capital flight out of the USA has accelerated beyond the $2 Trillion a year we are already experiencing.
Reputable business, economic magazines and on-line sources are beginning to discuss Federal Bankruptcy and hyper-inflation as possible outcomes of Federal Keynesian policies. Keynes: party today pay tomorrow.
My understanding is that gold and silver coins are still big movers worldwide as more people hedge. As I ask around, more people that I know are starting to buy their first gold or silver in their lifetimes.
If the dollar goes into complete collapse, there may be a period when dollars are no longer accepted while everyone is waiting for the Feds to print up the replacement currency. Maybe we can name them Marks or Peso’s.
If you are not familiar with pre Nazi Germany and hyper-inflation and it’s economic, social and political effects this may be a good time to read up on the Wiemar Republic since the Feds seem hell bent on recreating it in this country.
We're making an effort to keep the same behaviors that we adopted when gas was over $4/gallon--consolidating trips, turning off the engine in slow lines (except for the last two days--it's been too cold for that), etc. However, I have a feeling that for the most part, people will revert back to wasteful ways over time if the price stays low. For example, when gas was at its highest, it seemed the Hummers disappeared from the roads. We're starting to see them out and about again, now that the owners can more easily afford to drive them. It would be great if consumption stayed low, but I think convenience is too ingrained in the American psyche for us to change our behavior unless we're forced to.