Archive for October 28th, 2014

Are you feeling nostalgic for cheap gas? Maybe you shouldn’t…

October 28, 2014

By Matthew E. Milliken
MEMwrites.wordpress.com
Oct. 28, 2014

On Sunday night, I was driving around Durham, North Carolina, when I noticed that a nearby gas station was selling unleaded for $2.99 a gallon. I did a quick search on Gas Guru, an iPhone app, and found a bunch of local stations that were offering the same price. It’s the lowest I’ve seen in quite a while.

A web search on Monday morning led me to this chart at a website called GasBuddy.com, which showed that gas prices nationally have been trending downward since late June. It’s difficult to discern precise numbers and dates on the graph, but the average U.S. price is a little less than than $3.09 per gallon right now.

The last time gas was so cheap was around the start of 2011, when the price was headed up; in May 2011, the price spiked at above $3.85/gallon. That’s the second-highest price for gas in the past decade.

The peak price was near $4.10 in June 2008. But soon after that, the price plunged. About six months after gas reached its highest level over the previous decade, it hit its lowest level in the same period. On Nov. 27, 2008, gas cost just $1.59.

A lot of conservatives seem to have forgotten this, but 2008 — the final year of the George W. Bush presidency — marked the beginning phase of the great recession, which lasted until June 2009. (Technically, the recession began in December 2007.)

In case you’ve forgotten about the recession — from which the U.S. economy continues to recover in rather sluggish fashion — let’s review.

After months of being at or below 4.7 percent, the unemployment rate rose to 5.0 percent in December 2007. It hit 6.1 percent in August 2008 and 7.3 percent in December 2008. Four months after that, it was 9.0 percent. In October 2009, the unemployment rate peaked at 10.0 percent.

Read the rest of this entry »

%d bloggers like this: