September 04, 2005

Dealing with high gas prices

Talking to people about gas prices is quite interesting - it really shows how they view economics.

Large numbers of people believe in conspiracy theory - "The oil companies are out to rip us off". Others groan and say "Man I wish I hadn't bought that SUV".

Still gas prices are a only a small percent of overall car ownership costs - even with the gas of price increase for the average driver. Say the average driver pays $300 a month for their car, including taxes, permits, repairs and maintenance. Insurance adds another 100 dollars. Gas we can say is $50 a week or $200 a month. Gas prices up 50% means that they spend another $100 a month.

Overall costs are only up 8-16%. Now for the rural uninsured driver with a beat up pickup costs are up closer to 50%.

Posted by Anthony at September 4, 2005 12:06 PM