Maybe Californians Shouldn't Complain About High Gas Prices
Californians complaining about the high price of gas might want to think twice, when they consider what people went through during the gas crisis of the early 1970’s.
Monday, May 8, 2006
During the Arab Oil Embargo of 1973 and ‘74, prices at the pump jumped from 28 to 55 cents a gallon.
President Nixon instituted price restrictions, which led to more people wanting to buy gas than people wanting to sell it. That led to long gas lines.
UC Davis Assistant Professor of Economics Christoper Knittel says we should all remember those lines, and remember that time is money:
Given that our incomes are quite high now, so the value of waiting in line is much higher today than in the past, I’ll take being able to buy my three dollar gas quickly rather than having to wait in an hour to get gas.
The gas crisis of the ‘70’s also prompted President Nixon to lower the national speed limit to 55 miles per hour.