from the publisher ...
Thank you! We at the Sun are enjoying the kind words that so many of you are sending along with your donations to help cover the rising costs of delivering the newspaper. Our aim is to serve the community, and your comments about what you especially like help us to serve you better.
I want to reiterate our continuing commitment to provide the Sun to all homes and businesses in Sonoma Valley. Delivery is not dependent on making a voluntary donation.
If you like what the Sun offers, please help.
Thanks,
/s/ Bill Hammett
Gas at 38¢
No, that’s not the price per pint, though maybe gas stations could start advertising their prices that way.
That’s the price per gallon in 1973. Remember? Back when gas was cheap!
But was it really? Or more to the point, is gasoline really more expensive now?
We took a walk down memory lane (via some federal websites) in order to look at what the actual cost of gas has been, recognizing that prices have been far from stable in the U.S. Lack of stability can come, of course, with changes in the money supply. Instead of prices staying the same, or even dropping if productivity increases, the federal government has been increasing the money supply steadily, and more money chasing the same amount of goods will bid up the prices of those goods. That’s inflation.
When we adjust for inflation, the price of gasoline looks a lot more stable. Gas has been cheap for a long time, and we’ve been spoiled. Even now, it’s below its historical high.
Another example of inflation: Some of us remember our grandfathers saying they could buy a fine suit for $20, “in our day.” Well, today, what’s an ounce of gold (the weight of a $20 gold coin) sell for? About $920 – the cost of a fine suit.
And remember how it’s the government that inflates the money supply? For the first 150 years of our nation, when all U.S. money was backed by precious metal, principally gold and silver, that was not possible. We can thank Presidents Franklin Roosevelt, who in 1933 decreed that only the U.S. government could own gold and devalued the dollar in 1934 by 69 percent, and Richard Nixon, who in 1971 severed any tie with gold reserves, letting the dollar “float,” as it has ever since.
But back to gas prices. Don’t blame the attendants at your favorite gas station for the prices – it’s a symptom of a bigger issue. And don’t blame the local station owners or franchisees – they’re making only cents on every gallon, whatever the price.
Whither inflation? It’s a good bet it’ll continue for a long time to come. We suggest everyone plan accordingly.
That’s the price per gallon in 1973. Remember? Back when gas was cheap!
But was it really? Or more to the point, is gasoline really more expensive now?
We took a walk down memory lane (via some federal websites) in order to look at what the actual cost of gas has been, recognizing that prices have been far from stable in the U.S. Lack of stability can come, of course, with changes in the money supply. Instead of prices staying the same, or even dropping if productivity increases, the federal government has been increasing the money supply steadily, and more money chasing the same amount of goods will bid up the prices of those goods. That’s inflation.
When we adjust for inflation, the price of gasoline looks a lot more stable. Gas has been cheap for a long time, and we’ve been spoiled. Even now, it’s below its historical high.
Another example of inflation: Some of us remember our grandfathers saying they could buy a fine suit for $20, “in our day.” Well, today, what’s an ounce of gold (the weight of a $20 gold coin) sell for? About $920 – the cost of a fine suit.
And remember how it’s the government that inflates the money supply? For the first 150 years of our nation, when all U.S. money was backed by precious metal, principally gold and silver, that was not possible. We can thank Presidents Franklin Roosevelt, who in 1933 decreed that only the U.S. government could own gold and devalued the dollar in 1934 by 69 percent, and Richard Nixon, who in 1971 severed any tie with gold reserves, letting the dollar “float,” as it has ever since.
But back to gas prices. Don’t blame the attendants at your favorite gas station for the prices – it’s a symptom of a bigger issue. And don’t blame the local station owners or franchisees – they’re making only cents on every gallon, whatever the price.
Whither inflation? It’s a good bet it’ll continue for a long time to come. We suggest everyone plan accordingly.
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