I found another interesting article on high gas prices written by a PhD candidate in Economics saying that gas prices are right where they should be. The falling dollar surely doesn’t help but he may be right – then again – I don’t trust much of anything found on the internet without seeing raw figures. Here’s an excerpt
But taxes have not stayed 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.
Read the rest here
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