Sunday, May 20, 2007

Maybe Gas Prices Aren't So Bad

So I was thinking about the price we pay for stuff these days, and it dawned on me. We are willing to pay a lot of money for luxury items but refuse to accept that staple items are subject to inflation just like everything else. Take a look at this graph of the relative price of certain goods:

How many people do you know who must have their Starbucks coffee every morning? Or who guzzle down can after can of Pepsi. Ever take a trip to Cedar Point, a Major League Baseball Game or the zoo? If you have, you better enjoy that bottled water, because you are paying over $15 per gallon of it. When you think about it, you'd be hard-pressed to find any liquid product that you can buy for less than $3.20 per gallon.

We don't mind paying so much for luxury goods because we get some sort of immediate gratification from them. Pepsi goes great with pizza and chicken wings; bottled water at the ball game quenches your thirst; and a Starbucks Java Chip Frappuccino is the most delicious way to wake up in the morning. We want our cars to go but don't want to pay to make them go. In retrospect, it could be a lot worse. Imagine what the world would be like if cars ran on Starbucks lattes instead of gasoline...

Taken from