Monday, August 4, 2008

Income vs. Gas Prices, an Update

It seems that some Americans are now spending twice as much of their household income for gasoline as they were in 1999. That is a serious number.

I believe that median household income is around $48,000 right now. So those Americans are spending about $5500 a year on gasoline. To me that is a scary number.

This also explains why you can no longer get a parking spot at the Tri-Rail parking lot in Delray Beach. Well if you get there before 6:30 AM I suppose you can.

This does not bode well for the economy. Let's see: drive, ride the bike or give up beer?
clipped from, which released an analysis saying that about 60 vehicles in the new-vehicle market now cost over $100 to fill up, also gave an update on how gas prices are grabbing more of consumers’ incomes. Edmunds says the median household is spending 11.5% of its income on gasoline, up from 4.6% of its income five years ago. Here’s a look at how that progressed:

Date*    Price Per Gallon (1)   Median Income (2)   Income spend on fuel (3)   
1995$1.14$34,076 4.6%
1999$1.19$40,696 4.0%
2003$1.51 $43,3184.8%
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