Gasoline and Prosperity

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In January 2020, my friend and I spent a week in Belize. We rented a car so we could get off the coast for our second trip and see the ruins, the jaguar preserve, Amish country, etc. He paid the car rental, and I paid for gas. At first, he thought this would be in my favour until he discovered the prices at the pump. Even more suprising was the reaction of the people in Belize when I arrived for gas.

In Belize, someone pumps your gas for you. It took me a few times before I noticed the look of surprise on their faces when, after they asked me how much to put in, I told them to fill it up. You see, back in 2020 the average annual salary in Belize was $10,000 so they only bought as much gas as they needed. My friend and I drove 1200 miles on that car in a week and used a fair amount of gas, and we didn't want to have to stop to get a few gallons here and there. I realized then that this showed them I was "wealthy" at least by comparison.

Contrast that to yesterday when I went to the gas station to fill my car in Las Vegas. The pumps tell a story of desperation. Despite reassurances that Bidenomics is working, people were buying 1.2 gallons, 5 gallons, and except for one other pump, nobody spent more than $20 on gas, and these people were putting it directly into their cars, not a jerry can for a lawnmower or something (which I also do sometimes). Granted, my Saturn only holds 12.125 gallons, but I put 11 gallons in the car and DIDN'T BAT AN EYE at the price. I'm upset it's this high, but I'm apparently prosperous enough that I don't have to actually ration money for gasoline.

Let's face it- driving is a privilege. We take it for granted in our society that we can jump in a car, go for a drive, and see the world. Most of our ancestors either walked everywhere or rode a horse. In the last 18 months, I have flown to Europe thrice, trips which would have taken a year in total if I had to go by ship. We are so prosperous now that we don't even know it, but the degree to which people do drive does indicate how prosperous our society actually is.

If you like me are over 40, you probably remember being able to fill your tank for $20 and burn a tank in a day and not worry. Back in 2007, I would fill my car every Saturday and drive as far as a tank would take me and back. Most I ever spent on gas was $30 and that was when I had to buy Chevron or gas in the middle of nowhere. It was a cheap day of entertainment. I used to drive around at night for fun. Now I don't. I only drive to things I really care to do, and I sometimes even walk my errands (the grocer is a mile each way).

Personal prosperity is reflected in our gasoline consumption. When times are good, we drive a lot. When times are dire, we only put in as much gas as we need. Apparently many Americans are living as if they have the standard of living of your average Belizean, and only putting in enough gallons to get to their next paycheck. On the one hand it's good because it means they are not wracking up credit card debt. On the other hand it's bad, and I feel for them because cars equal freedom.

I found a graph that I think is interesting showing inflation of fast food over the past ten years.

If you consider the actual inflation rate, it tells an interesting story. The rate of inflation increased significantly in 2021, coinciding with a change in which party leads this nation. I do not think it is a coincident. Our prosperity is down as a rule. I'm just doing well enough that I didn't notice the gasoline asymptote when I was in Belize, and I haven't felt it until yesterday. I still stay under my gasoline budget for the month, but that's because I don't drive anywhere "just because I feel like it" anymore. When I break the budget, I'll know even I'm impacted by Bidenomics, something of which Kamala Harris is very proud.

Food for thought.