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OK, $5,000 / $2.84 a gallon, the average retail 2007 price = 1,760 gallons. That sound about right? What kind of gas mileage do you get?
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I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891 -
Most Americans don't pay rents; they pay mortgages.Originally posted by DanS
Housing is counted in the CPI, it's just calculated using rents.Try http://wordforge.net/index.php for discussion and debate.Comment
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$2.84 a gallon?
We had a similar discussion in the "$4.00/gallon..." thread.
Our current price per litre is around $1.10 which I calculate to around the $4.00 per gallon mark. Am I wrong?
I've never calculated by mpg (I don't actually pay for the fuel so it doesn't directly impact me). The charts tell me it should be 31mpg highway (which is what 95% of my driving is).
They assume a fuel cost and total miles considerably less than me."I have never killed a man, but I have read many obituaries with great pleasure." - Clarence Darrow
"I didn't attend the funeral, but I sent a nice letter saying I approved of it." - Mark TwainComment
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Inflation is thought to be somewhat overstated because of substitution. When price of Pepsi goes up you substitute it with Vodka. This is not easy to take into account in the official figures, though they have some methods that try to do so.Originally posted by Tuberski
How in hell can you focus too heavily on everyday purchases? My life revolves around everyday purchases, not "big" purchases.
The price of a new car has far less affect on my life than the price of a dozen eggs.
All this proves is that mainline economists are idiots.
ACK!
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The article talks about this. The CPI is weighted some what heavily for the purchase of electronics (TVs, DVD players, Computers) and under counts things like food prices. Or so the article claimsOriginally posted by Tuberski
How in hell can you focus too heavily on everyday purchases? My life revolves around everyday purchases, not "big" purchases.
The price of a new car has far less affect on my life than the price of a dozen eggs.
All this proves is that mainline economists are idiots.
ACK!
Also the idea of substitutions, I.E. steaks are to expensive so people might buy pork or chicken instead, sounds nice on paper in academia but in reality this prevents the CPI from actually doing its stated purpose. Which is to compare consumer prices year to year. If you're constantly changing which goods you're counting and which ones you are ignoring then it makes it harder to compare prices year to year.Try http://wordforge.net/index.php for discussion and debate.Comment
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OK, so you drive roughly 40,000 miles a year. Let's assume that the car has a useful life of 5 years based on that mileage -- i.e., the life ahead of your car and behind it is about equal. So using 2007's gas price would be correct.
200,000 miles / 31 mpg x $2.84 =~ $18,300
Did your car cost more or less than that?Last edited by DanS; March 2, 2008, 10:35.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Originally posted by VetLegion
When price of Pepsi goes up you substitute it with Vodka.
I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Rents lag behind mortgages by a year or so usually. At least on the way up. On the way down it takes longer I think.Originally posted by Oerdin
Most Americans don't pay rents; they pay mortgages.I drank beer. I like beer. I still like beer. ... Do you like beer Senator?
- Justice Brett KavanaughComment
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Less, but are you assuming 2007 prices b/c it is the midway point of the car life? I'm not sure that is a safe assumption with the reports of impending fuel increases that I have been hearing. We just recently saw prices of $1.30 / litre ($5/gallon).
Anyway, I will grant (and it would appear from the stats) I do more driving than average so mine may not be the best example. Someone that drives the average would expect a longer car life however. What will gas prices look like 5-10 years out?"I have never killed a man, but I have read many obituaries with great pleasure." - Clarence Darrow
"I didn't attend the funeral, but I sent a nice letter saying I approved of it." - Mark TwainComment
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Well, even with you (put into an American's shoes), the price of the car probably was only slightly less than the gas -- in an age of extreme oil prices. Yet an average person will focus on the price of the gas about 10x more than they will on the price of the car. I don't hear too many people BAM about the prices of cars, but the price of gas even gets lots of threads on Poly.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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I understand your point, but I suspect auto's and fuel may be an exception. Fuel prices are liable to rise considerably in the coming years while at the same time there is pressure on the automakers (particularly the American ones) to keep prices as low as possible."I have never killed a man, but I have read many obituaries with great pleasure." - Clarence Darrow
"I didn't attend the funeral, but I sent a nice letter saying I approved of it." - Mark TwainComment
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I've been renting apartments for 20ish years. I've never seen a rent decrease.Originally posted by Kidicious
Rents lag behind mortgages by a year or so usually. At least on the way up. On the way down it takes longer I think.Libraries are state sanctioned, so they're technically engaged in privateering. - Felch
I thought we're trying to have a serious discussion? It says serious in the thread title!- Al. B. SureComment
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Same here. In fact I have had a rent increase each and every year except the last two.Originally posted by Thoth
I've been renting apartments for 20ish years. I've never seen a rent decrease."I have never killed a man, but I have read many obituaries with great pleasure." - Clarence Darrow
"I didn't attend the funeral, but I sent a nice letter saying I approved of it." - Mark TwainComment
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It's not a law of nature that fuel prices will rise in the coming years. They can fall quickly too. I don't think I will ever forget 1986.Originally posted by Wezil
I understand your point, but I suspect auto's and fuel may be an exception. Fuel prices are liable to rise considerably in the coming years while at the same time there is pressure on the automakers (particularly the American ones) to keep prices as low as possible.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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The price of gas affects the price of every perishable good, the price of an automobile does not affect that price. People are affected by gas prices everyday, even if they do not buy gas.Originally posted by DanS
Well, even with you (put into an American's shoes), the price of the car probably was only slightly less than the gas -- in an age of extreme oil prices. Yet an average person will focus on the price of the gas about 10x more than they will on the price of the car. I don't hear too many people BAM about the prices of cars, but the price of gas even gets lots of threads on Poly.
ACK!
Don't try to confuse the issue with half-truths and gorilla dust!Comment
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