An interesting editorial that argues on behalf of oil companies and their profits: "Hey, gas isn't that expensive compared to milk or bottled water!"
From July 1979 to October 1983, gasoline was fairly consistently over the equivalent of $2 a gallon. During much of the 1920s and 1930s, gasoline prices were higher than the equivalent of $2, also. In 1922, for example, the pre-tax cost per gallon was just shy of 25 cents — equal to about $3 today.
One part of our fuel bill has increased dramatically in real terms over the years: Taxes. Adjusted for inflation, state and federal taxes on gasoline have increased by 868 percent since 1922 — they were only 4 cents per gallon back then — and by 50 percent since 1981, when they were just 14.5 cents.
The author is David Ridenour, who is vice president of a conservative think tank called The National Center for Public Policy Research, which happens to be heavily funded by Exxon: The NCPPR has received $280,000 from Exxon since 1998 (thanks, Exxonsecrets.org). This information does not appear next to the "About David Ridenour" blurb in most of the papers that published his editorial, of course.
Surprise - Ridenour is an apologist for big oil (also, interestingly, his wife is president of the NCPPR). He is also an officer in the "Wise Use Movement," which is "a grassroots movement made up of property rights, farming, ranching, logging, and mining organizations dedicated to wise use/sound management of the nation's natural resources."
Despite his intentions and obvious right wing tilt, Ridenour makes an important point with what he doesn't say in his editorial: Big oil is heavily subsidized by the United States government both directly and indirectly. It would be hard to imagine gas for under $4 per gallon without these government supports in place, so his point that gas is actually relatively inexpensive is valid. But this is an artificial price; will an economic infrastructure heavily dependant on highways and overland trucking survive the harsh reality many foresee (The Long Emergency presents an especially dark view of the future after oil production has peaked) where these price supports and policies can no longer be continued?
An interesting note on consistancy: An actual headline on the NCPPR website:
Rising Energy Cost [sic] are Taking Their Toll on American Households
Link: Gas prices can't keep pace with milk, bread, water - The Honolulu Advertiser - Hawaii's Newspaper.
Comments