by MonteQuest » Mon 14 Jul 2008, 01:42:30
$this->bbcode_second_pass_quote('kublikhan', ' ')From peak to trough, MPV went from 120% to 93%, a difference of 29%.
From peak to trough MPG went from 145 to 100, a difference of 45%.
$this->bbcode_second_pass_quote('', 'F')rom peak to trough, gasoline prices went from $2.92 to $1.31, a difference of 123%. The magnitude of the price swings in gasoline are enough to cover the magnitude of the changes in MPV four times over.
But still the gas wasn't cheap. From 1981 to 1999, the average price was $1.77 during the MPV spike.
From 1950 to 1980, the average price was $2.00/gal.
29 cents a gallon cheaper is going to cause that spike?
Not.
In real time dollars at the pump a the time, the swing was $1.38 to $1.14=$.24 cents.
Triple what the pump price was in the 70's.
How many gas buyers adjust for inflation?
Hardly any. They didn't know $1.38 was $2.92 or $1.14 was $1.31.
Hell, they don't know it now. Look at how hard it has been to get people to grasp that gas, until recentl,y has been cheaper than in 1980 even though it is triple again at the pump!
And what's more, the $2.92 high was a one year high dropping 41% the next year, so this 123% swing is misleading.
Look at the numbers:
1980 1.25 2.91 1981 1.38
2.92 1982 1.26 2.51 1983 1.20 2.33 1984 1.18 2.18 1985 1.17 2.09 1986 0.89 1.56 1987 0.91 1.54 1988 0.91 1.48 1989 0.98 1.53 1990 1.13 1.66 1991 1.10 1.56 1992 1.09 1.49 1993 1.07 1.43 1994 1.07 1.40 1995 1.11 1.40 1996 1.20 1.47 1997 1.20 1.44 1998 1.03 1.22 1999 1.14
1.31
The cheap gas ($.50/gal drop) only came in 86 where we see a slight rise in MPV on the chart. 81-82 drop is recession influenced and hard to correlate to price or MPG.
What's more, when MPG went flat, so did MPV.
When MPG went down, so did MPV while the price was heading
down $.20/gal. 97-98
The red and blue line mirror one another.
Give it up.
A Saudi saying, "My father rode a camel. I drive a car. My son flies a jet-plane. His son will ride a camel."