Sunday, September 21, 2008

"Gas Prices are at an All time High"

The BHO campaign sent out an email to his followers last Thursday (the 18th) which contains the following little ditty:

"The economy hit a new low this week, and in every part of the country, people like you are feeling it.

More than 600,000 Americans have lost their jobs since January. Home foreclosures are skyrocketing, and home values are plunging. Gas prices are at an all-time high..."

Um, Earth to BHO; gas prices are not at an "all time high." The price of gasoline has dropped 28 cents, or about 6.3% since June. I paid $3.55 at Costco the other day.

But don't let that get in the way of a good bit of politicking, BHO. It's not like the truth matters or anything...


UPDATE: And then there's this study by 2 LA Times reporters. It turns out gas is actually more affordable now than it was in the halcyon days of gas guzzling muscle cars:

"Although it's true that the real (inflation-adjusted) and nominal (posted) prices of gasoline are higher than at any time since World War II, even at the recent peak national average of $4.11 a gallon (California's average Friday was $4.17), gasoline is still more affordable today than it was during the Kennedy administration. Federal Reserve Chairman Ben Bernanke worries that increasing fuel prices might eat up so much disposable income that it flat-lines consumer spending and tanks the economy. But it's difficult to square that worry with what we call the "affordability index" -- the ratio of the average person's disposable income to the price of gasoline.

After studying the average yearly price of gasoline from 1949 to 2007, and assigning the number "1" to the ratio in 1960, we found today's prices comparable to what they were in 1960 (1.35 today to 1.00 in 1960, with a high of 3.32 in 1998). The higher the gasoline affordability index figure, the lower the price of gasoline relative to disposable income."

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