Unprecedented plunge in Fourth of July gas prices

[citygator]

And what was the rate only taking into consideration the time after Biden took office? I bet the real growth in that period was almost entirely 2019 and 2020.

Inflation has eaten up all of the nominal wage increases and then some. I took my nephew and his girlfriend to breakfast today in a little local cafe.

A year ago, bacon and eggs breakfast was $9. I haven't gone out to eat in a while, but I had a hard time keeping quiet this morning- it was $18. Everything on the menu was exactly doubled.

What has happened to your pay? Unless you are an outlier not making more money they went up more than your costs.

 

[Harpy Eagle]

And since you didn't answer my question, I looked it up.

This graph tells the part of the story the left-wing EPI conveniently omits. Only last March did wages finally break even with inflation.

Wage growth vs inflation U.S. 2024 | Statista

The rate of inflation overtook the growth of wages in April 2021. High rates of inflation means that consumers are seeing a decrease in purchasing power

www.statista.com

It is good to know that wages are now above inflation!

Thanks for the graph!

 

[para bellum]

It is good to know that wages are now above inflation!

Thanks for the graph!

Yes, and now you know why EPI included 2019 and 2020 in their "study".

They needed the positive growth in real wages under Trump to offset the disaster of Bidenomics.

 

[Harpy Eagle]

Yes, and now you know why EPI included 2019 and 2020 in their "study".

They needed the positive growth in real wages under Trump to offset the disaster of Bidenomics.

pop quiz for you, do you think this had any impact on inflation?

 

[para bellum]

pop quiz for you, do you think this had any impact on inflation?

View attachment 800719

You are trying to play games.

That jump was a result of redefining m1 to include deposits in savings accounts.

 

[Zincwarrior]

The people paying $3.55 are getting ripped off.
View attachment 800234

Gas here is $3.19. at $70 a barrel, it should be $2.40 like you say. There's definitely gouging.

 

[Harpy Eagle]

You are trying to play games.

That jump was a result of redefining m1 to include deposits in savings accounts.

Which took place in Feb of 2021

 

[para bellum]

Which took place in Feb of 2021

No, it was May 2020, just what your graph shows.
------------------------------------------------------------------------

Understanding M1​

"M1 money is a country’s basic money supply that's used as a medium of exchange. M1 includes demand deposits and checking accounts, which are the most commonly used exchange mediums through the use of debit cards and ATMs. Of all the components of the money supply, M1 is defined the most narrowly. M1 does not include financial assets, such as bonds. M1 money is the money supply metric most frequently utilized by economists to reference how much money is in circulation in a country.

Note that in May 2020, the definition of M1 changed to include savings accounts given the increased liquidity of such accounts."

M1 Money Supply: How It Works and How to Calculate It

M1 is the money supply that encompasses physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

www.investopedia.com

 

[Harpy Eagle]

No, it was May 2020, just what your graph shows.
------------------------------------------------------------------------

Understanding M1​

"M1 money is a country’s basic money supply that's used as a medium of exchange. M1 includes demand deposits and checking accounts, which are the most commonly used exchange mediums through the use of debit cards and ATMs. Of all the components of the money supply, M1 is defined the most narrowly. M1 does not include financial assets, such as bonds. M1 money is the money supply metric most frequently utilized by economists to reference how much money is in circulation in a country.

Note that in May 2020, the definition of M1 changed to include savings accounts given the increased liquidity of such accounts."

M1 Money Supply: How It Works and How to Calculate It

M1 is the money supply that encompasses physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

www.investopedia.com

And why did they change the definition, because they removed the restriction on how many withdrawals one could have from their savings account, thus making them no different than a checking account and giving people the choice to freely use that money...which they did.

 

[AzogtheDefiler]

The OP and his lies. Amazing. Nothing changes.

 

[para bellum]

And why did they change the definition, because they removed the restriction on how many withdrawals one could have from their savings account, thus making them no different than a checking account and giving people the choice to freely use that money...which they did.

Who cares? The "why" is irrelevant.

The definition was changed, and that change is what's reflected in your chart.

 

[Harpy Eagle]

Who cares? The "why" is irrelevant.

The definition was changed, and that change is what's reflected in your chart.

Because savings account become part of the money supply due to the removal of restrictions.

 

[para bellum]

Because savings account become part of the money supply due to the removal of restrictions.

Is there a point?

You asked if the m1 change had any impact on inflation, the answer is no. I told you why that chart looks like it does.

The change in the definition does not reflect a change in actual dollars in circulation. Balances in savings accounts did not suddenly increase.

 

[Harpy Eagle]

Is there a point?

You asked if the m1 change had any impact on inflation, the answer is no. I told you why that chart looks like it does.

The change in the definition does not reflect a change in actual dollars in circulation. Balances in savings accounts did not suddenly increase.

Actually they did due to all the money given away during COVID and people having less to spend it on. It is shocking how none of you people think those checks from the Govt could not possibly had any impact on inflation

 

[para bellum]

The OP and his lies. Amazing. Nothing changes.

I would be thrilled to pay those prices for gas. My fillup last week was the highest I have ever paid at the pump, anywhere, ever.

 

[para bellum]

Actually they did due to all the money given away during COVID and people having less to spend it on. It is shocking how none of you people think those checks from the Govt could not possibly had any impact on inflation

You are conflating. The m1 went from $4 Trillion to $16 Trillion in one fell swoop. Covid direct payments totaled about $840 Billion, all three rounds combined.

Only the first round from the CARES act was disbursed prior to May 2020 (and I don't even think it had all gone out by May). In any case, it was only $271 Billion.

Payments phased out at less than 100K income. Most of the money was spent as fast as it came in because the working class was in lockdown mode.

 

[Harpy Eagle]

Payments phased out at less than 100K income. Most of the money was spent as fast as it came in because the working class was in lockdown mode.

More money chasing fewer goods....yep no possible way that could be related to inflation...

 

[para bellum]

More money chasing fewer goods....yep no possible way that could be related to inflation...

Well why don't you start a thread on the causes of inflation if that's what you wish to pontificate on.

You post a lot of happy-talk about the Biden economy, good for you.

Where I live, we aren't enjoying any "unprecedented plunges" in gas prices. $5.39 is the highest I have ever had to pay for a gallon of gas. For working people, it is a huge impact. I'm glad you think that's funny, you obviously don't have much regard for the working class.

Likewise, your EPI "study" was disingenuous- real wages (and hence purchasing power) have fallen for virtually everyone since Biden took office.

From where I sit, you are 0 for 2.

 

[Harpy Eagle]

Well why don't you start a thread on the causes of inflation if that's what you wish to pontificate on.

That is the topic of this thread. But I understand that you have to blame it 100% on Biden or risk the ire of your tribe.

You post a lot of happy-talk about the Biden economy, good for you.

There is no such thing as the "Biden economy" nor was there "Trump economy" or a Obama one or any of the rest. The POTUS is not a god, they are not all powerful nor do they really control all that much when it comes to the economy.

Where I live, we aren't enjoying any "unprecedented plunges" in gas prices. $5.39 is the highest I have ever had to pay for a gallon of gas. For working people, it is a huge impact. I'm glad you think that's funny, you obviously don't have much regard for the working class.

Then that would be a product of where you live, and has very little to do with who is sitting in the White House. I do not know where you live, but there is not a state in the Union with an average price over 5 dollars right now, the prices you are paying are likely due to local taxes added onto the state taxes that are added onto the Fed taxes.

I am paying less than 3.20 a gallon right now where I buy gas.

What do you consider to be the "working class"....is a nurse and data analyst members of the working class in your mind?

Likewise, your EPI "study" was disingenuous- real wages (and hence purchasing power) have fallen for virtually everyone since Biden took office.

I did not post any studies, you seem to have me confused with someone else.

From where I sit, you are 0 for 2.

This from the guy that cannot follow the flow of a thread.

 

[para bellum]

That is the topic of this thread. But I understand that you have to blame it 100% on Biden or risk the ire of your tribe.

The topic of this thread was "unprecedented plunge in gas prices".

I mistook citygator's post for yours, I stand corrected on that- I am old and get my gators confused.

I have not commented once on the cause of inflation and do not belong to any tribe. I have posted data on the timeframe in response to citygator's EPI piece, and I posted the gas price we pay where I live in response to your OP. It has not gone down one penny here.

I do not agree with your statement that the POTUS has no effect on gas prices- policy has a great deal of impact on energy development and expectations of producers.

Prices in almost all of Western Washington are over $5. Oregon and California are slightly lower, but not by much.

AAA Gas Prices