Gas prices are really high! “The government must act!” With all the hand-wringing and political opportunism, it is instructive to look at gas prices adjusted to April 1979 dollars. Puts things in perspective. Interesting to note that after peaking in early 1980, then falling off a few years later, adjusted prices have remained at a fairly constant low from mid-1985 through 2005. The spike in mid-2005 correlates with devastating hurricanes that shut down some refining and distribution capacity, but it subsequently dropped. The more recent spiking seems to correlate with Iran’s nuclear sabre-rattling.
Chart via.
Posted by bill in Economics, Misc. Info