Gas Prices

They are skyrocketing, but Kim du Toit does an excellent job of putting them in perspective with the Consumer Price Index.

Kim correctly points out that gasoline prices have increased 700% since 1960. On the other hand the price of bread has gone up 1000% and the price of a new car (which is far more relevant to this topic) has gone up 800%.

Honestly, we have been really spoiled by gas prices throughout most of the 1990s. They were incredibly low by historical standards. Now things are re-adjusting themselves and prices are going back up to where they probably belong. So all those SUVs and V8 sedan sales are going to slow down with higher oil prices. Maybe someone will start selling a decent compact in the US to compete with the Mini.

Part of me wonders if this market correction is because the Arab states don't need us to keep Saddam in check anymore. They don't have to buy us off with cheap gas anymore.