To the Journal editor:

A few days ago, I learned that regular gas in Michigan now averages $4.28 per gallon. I worked in a gas station in 1960. At that time gas often sold for about 30 cents per gallon. I have often wondered how that compares with today’s prices? Here is what I found when I compared the numbers.  As the old saying goes “the more things change, the more they stay the same.”

In 1960 the cost to drive 100 miles at 31 cents per gallon of gas in a Chevrolet Bel Air averaging 15 MPG required 6.66 gallons was $2.06. Factoring inflation that $2.06 would be equivalent of $20 today.

Today a comparable 100-mile trip at $4.28 per gallon driving a Chevrolet Malibu averaging 30 MPG would require only 3.33 gallons of gas, and would cost only $14.25. How can this be?

First, with inflation one dollar in 1960 is worth approximately $9.71 today. So, 31-cents for a gallon of gas 1960 would be $3.01 today. Second, technological advances have improved the average mileage of cars. For example, in 1960, the mileage for a Chevrolet Bel Air was approximately 15 MPG. In 202, the mileage for Chevrolet Malibu is approximately 30 MPG. Therefore, as surprising as it may seem, even though the price of gas has recently shot up to $4.28, the cost of fuel per mile traveled is lower than it was in 1960.

On a related point, it appears the price of gas today is “eating up” roughly the same percentage of an average American’s income as it did in 1960. In 1960 the average/median income for families was $5,600 Factoring in inflation that would be the equivalent of $54,376 today. Unfortunately, the actual median income for families today in 2022 is somewhat lower at $51,480 than it was in 1960. 

Knowing this, my question now becomes; Why has the average/median family income remained relatively stagnant for over half century?