Quote:
Originally Posted by Nick B
Your house didn't cost half a mil either. Times change.
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It is not a completely FAIR comparison between the prices of a gallon of gasoline from today to a time of 50 years ago. There are at least 2 factors that have changed. One factor is the time value of money - which takes into consideration interest rate and inflation. Let's say that one gal of gas cost 40 cents in 1970 and now it costs about 3 dollars. There are tables that allow you to convert the value of money from past years to today. I have not done that but I would imagine that just based on the change in the value of money (the US dollar) if based only on that one factor - then 1 gal of gas would today be about $3.25 or $ 3.50 here in Florida.
.........the other factor that would explain the (say) 75 cent difference would be the increased global tension in the world due to a possibly (?) widening war in Europe. Which could affect an increase in projected future global oil prices. AKA oil futures. I would note that Saudi Arabia seems to always be in the "driver's seat".