Interesting figures for a gallon of gas...

  1. In 1971 when I was 16 and began driving the price of gas was 36 cents a gallon. I don't remember the price of gas being a big deal. What I do remember was waiting in line to buy gas. We could only buy gas on even or odd days of the month depending whether the first number on the license plate was even or odd. Still the lines were very long. I can remember waiting 1 hour or more to buy gas. I was just wondering compared to 1971, percentage wise, how do things add up compared today?

    1971
    Cost of a new home: $28,300
    Median Household Income 9,028
    Cost of a first-class stamp .08
    Cost of a gallon of regular gas .36
    Cost of a dozen eggs .53
    Cost of a gallon of milk 1.18
    2007
    Cost of a new home: $292,000
    Median Household Income: 69,791
    Cost of a first-class stamp: .41
    Cost of a gallon of regular gas: 2.79
    Cost of a dozen eggs: 1.50
    Cost of a gallon of Milk 3.45

    The cost of a new home in 1971 was 3.13 x the yearly income. The cost of a new home in 2007 is 4.18 x the yearly income.

    In 1971 the hourly median rate of pay was $4.34
    In 2007 the hourly median rate of pay is $33.55

    So in 1971 we were paying about 12% of our hourly rate for a gallon of gas.

    In 2007 we are paying about 12% of our hourly rate for a gallon of gas.

    If I've figured it correctly, and I'm certainly no math whiz, a gallon of gas is not costing the average person anymore percentage wise than it did in 1971.

    I only made .95 an hour in 1971 and $32.00 an hour in 2007 so for me I'm really paying less for gas.
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  2. 20 Comments

  3. by   ElvishDNP
    I'm going to show my age here by saying that my parents were not yet married (nor was I yet born) in 1971. My dad tells stories about the gas rationing, though. Scary.

    That said, the biggest shocker to me is the price of a gallon of milk. I can't believe it was EVER under $1.50. Where I am it is it's a little higher than average (I guess) at $3.68.
  4. by   DutchgirlRN
    Quote from Arwen_U
    I'm going to show my age here by saying that my parents were not yet married (nor was I yet born) in 1971. My dad tells stories about the gas rationing, though. Scary.

    That said, the biggest shocker to me is the price of a gallon of milk. I can't believe it was EVER under $1.50. Where I am it is it's a little higher than average (I guess) at $3.68.

    I can remember quite well when milk was .99 a gallon. When it topped $1.00 people were outraged!
  5. by   Spidey's mom
    Quote from DutchgirlRN

    I can remember quite well when milk was .99 a gallon. When it topped $1.00 people were outraged!
    Same for gas . . . .it was .99 and I remember everyone's outrage when it went to over a dollar.

    My parents first home was a 4 bedroom ranch with a huge backyard for $11,000. (Granted this was 1960).

    I had heard about gas not costing more % wise . . .. .

    steph
  6. by   Jolie
    Quote from stevielynn
    Same for gas . . . .it was .99 and I remember everyone's outrage when it went to over a dollar
    steph
    My family owned a small chain of independent gas stations when I was growing up. In the early 1970's, a state highway project claimed the land on which one of the stations sat, forcing my dad to relocate. He built a new station with state-of-the-art pumps across the street. Shortly thereafter, gas prices rose over .99, a price that his brand new pumps couldn't display. Like many station owners, he had to advertise 1/2 gallon prices until the pumps could be modified.
  7. by   Spidey's mom
    Quote from Jolie
    My family owned a small chain of independent gas stations when I was growing up. In the early 1970's, a state highway project claimed the land on which one of the stations sat, forcing my dad to relocate. He built a new station with state-of-the-art pumps across the street. Shortly thereafter, gas prices rose over .99, a price that his brand new pumps couldn't display. Like many station owners, he had to advertise 1/2 gallon prices until the pumps could be modified.
    That is interesting . . . . bet it made folks madder still though.

    steph
  8. by   DutchgirlRN
    In Europe they sell it by the liter - $1.72/liter

    Sounds better than $6.85/gallon!
  9. by   loricatus
    Quote from DutchgirlRN
    In 1971 when I was 16 and began driving the price of gas was 36 cents a gallon. I don't remember the price of gas being a big deal. What I do remember was waiting in line to buy gas. We could only buy gas on even or odd days of the month depending whether the first number on the license plate was even or odd. Still the lines were very long. I can remember waiting 1 hour or more to buy gas. I was just wondering compared to 1971, percentage wise, how do things add up compared today?

    1971
    Cost of a new home: $28,300
    Median Household Income 9,028
    Cost of a first-class stamp .08
    Cost of a gallon of regular gas .36
    Cost of a dozen eggs .53
    Cost of a gallon of milk 1.18
    2007
    Cost of a new home: $292,000
    Median Household Income: 69,791
    Cost of a first-class stamp: .41
    Cost of a gallon of regular gas: 2.79
    Cost of a dozen eggs: 1.50
    Cost of a gallon of Milk 3.45

    The cost of a new home in 1971 was 3.13 x the yearly income. The cost of a new home in 2007 is 4.18 x the yearly income.

    In 1971 the hourly median rate of pay was $4.34
    In 2007 the hourly median rate of pay is $33.55

    So in 1971 we were paying about 12% of our hourly rate for a gallon of gas.

    In 2007 we are paying about 12% of our hourly rate for a gallon of gas.

    If I've figured it correctly, and I'm certainly no math whiz, a gallon of gas is not costing the average person anymore percentage wise than it did in 1971.

    I only made .95 an hour in 1971 and $32.00 an hour in 2007 so for me I'm really paying less for gas.
    You forgot to factor in the taxes.
  10. by   smk1
    The problem with the salary figures are for those at or close to minimum wage. They are making 7-10 dollars and the gas prices per gallon are 1/3 of their wage
  11. by   bethin
    Quote from Arwen_U
    I'm going to show my age here by saying that my parents were not yet married (nor was I yet born) in 1971. My dad tells stories about the gas rationing, though. Scary.

    That said, the biggest shocker to me is the price of a gallon of milk. I can't believe it was EVER under $1.50. Where I am it is it's a little higher than average (I guess) at $3.68.
    Wow. Last week I bought a gallon of milk for $1.69. Granted, that was small town Indiana so our cost of living is low.

    But, our gas prices are usually well above the national average. So I guess it evens out. When I went to San Diego on vacation I was shocked that gas prices were so low! We routinely pay ~ .30 above the average. But if I go to the next town I'll pay well below average.
  12. by   DutchgirlRN
    Quote from SMK1
    The problem with the salary figures are for those at or close to minimum wage. They are making 7-10 dollars and the gas prices per gallon are 1/3 of their wage
    I agree there is a problem for a large majority of the population with the salary figures but those are the averages available as "Medium Household Income" it is what it is. Likewise there were (1971) and still are a large majority earning way above the average.

    I pointed out that I was only making minimum wage .95/hr and the gas being .36 gallon was far above that 12% rate for me. Today as a family we pay less than 12% comparatively speaking.
  13. by   DutchgirlRN
    Quote from loricatus
    You forgot to factor in the taxes.
    It is meant to be a simple & interesting comparison... that's all. Taxes are certainly figured into the price of a gallon of gas.The taxes rates have changed over the years just like the income as changed. If you're interested in taxes...enjoy!

    http://www.ntu.org/main/page.php?PageID=19
    Last edit by DutchgirlRN on Oct 2, '07
  14. by   ElvishDNP
    Cute avi, Dutch.
    fftopic:

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