May 26, 2007

Burying the Lede

An AP story today said that "forty-six percent said they expect spiking gasoline prices to cause them severe financial problems".

Let's say the average family has two cars and drive them a combined 22,000 miles a year. That's 1833 miles a month. If they average 20mpg, that's about 91 gallons a month. The recent surge is about 50 cents extra per gallon. This means an extra $45 a month, or $11.25 a week.

The real story is that the richest country in the world can't afford an extra $11.25 per week without facing "severe financial problems".

There are legimately tight budgets, but there are also a lot of budgets made artificially tight by expensive clothes, cars and gadgets.

If we can't afford a fifty cent increase in gas price, how in the world are we going to afford the increased taxes that will occur in 2010 when the current tax relief expires? And yet how many voters voted for Democrats while ignorant that Dems are extremely likely to scrap the tax relief?

The extra $540 per year in gas prices - assuming gas prices remain at $3.25+ a gallon for a whole year instead of just during the summer driving months - is dwarfed by the $1,800 tax increase the typical family of four making $60,000 a year will experience in 2010.

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