Gas prices, a warped way of looking at them
I was playing around with some numbers now that gas prices are hovering around $3.50 a gallon. I just wanted to see what that really meant.
For this example, my car has a 13 gallon tank, gets 22 MPG, I work 28 miles away and I make $8.00/hour.
At the above, my car can get me to work if I do nothing else, to work every day for a week. Not bad. I got to work, yeeee haaaaa. Now what did it cost me?
At $8.00 wages, it will take 5.7 hours of the 40 total hours to just pay for gas. But wait, that is before taxes, OK, lets say I get to take home 78% of every dollar made thanks to fica, fed, state, etc. Seems fair. It is going to take 7.3 hours to just put gas in the tank to get to work.
What up with that????? This is above minimum wage. One whole day out of 5 is dedicated to just getting to work.
Now you have to live. Gee thanks.
OK, so Parmea, what was it like in the good ole days you might ask..... When gas prices were $2.50 (still to dang high) it took 4.1 hours gross or 5.2 hours.
And the real good ole days, 5 years ago? gas came in at $1.50. It took 2.4 hours at gross pay or 3.1 hours at 78% take home.
What I see is many poor people are working 1 day a week for the gas company. Talk about "the company store" of the early 1900s. Geeeze, its the same thing.
I rationalized these numbers as most people who have an $8.00hr job are not going to have them high MPG cars. They are driving what ever they can find.
28 miles includes getting the youngens to and from daycare, school etc. You cant just let them get to those places on there own.
Based on this, how the heck is a poor person suppose to live? Exist maybe, but live?
When your making $400,000 a year (senators and congressman) you really will not feel this problem. When your making $16,640.00/year, your hating it.
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Nice work, Parm.
A good way of looking at things.
I think the proper target for outrage would be Congress - mostly Republicans, but plenty of Democrats - who have voted for years to support and enable Big Oil instead of investing and promoting alternative energy. This ain't gonna get better anytime soon ... and you're seeing it take a toll in every segment of the economy right now.
Im not good with ratios
but would be neat to see what the ratio is for someone on a $20,000 year budget. Get a typical or average price for the required items, such as baby sitter, gas, electricity, water, rent etc. How the gas prices have gobbled up this ratio.
Just for folks who do not realize it. A senator or congressman makes $169,300/year (not including their COLA), correct? If that is true, in a "typical" work year, you work 2080 hours. These folks are making $81.39/hour. At these wages, it takes them .4 to .5 hours of the week to pay for their gas in the same car. Your lunch break.
Gas prices do not hurt these people.
For gas prices to effect them the same way it effects the poor, gas prices need to be about $35.50/gallon.
BTW, it would cost $461.50 to fill up that car at $35.50/gallon.