An effective 1% pay cut you weren't planning for could be a big deal.
But also: we've seen swings of +95% within the past 3 years -- so at the peak, people were complaining about an effective 5% pay cut.
And not everyone complains. I have a tiny commute, a professional job, and live in an expensive city where housing costs dominate -- so even double the gas price is a curiosity ("OMG I've never seen a tank cost that must") rather than a serious pain-point.
On the other hand, many people are far above that 4.8% average spend. They have long commutes and fuel-inefficient cars. Poor people, especially, tend to spend relatively more of their income on gas.
So when the price of gas goes up 95% (as it did from Jan-2006 to Jun-2008), and you have an older car and above-average commute -- you may have just taken a 10%-plus pay cut, when you may have been living hand-to-mouth already. Such people are honest about higher gas prices "killing them".
Fair enough. And it's true that poorer, or more rural, drivers spend a much higher percentage of income on gas. See excellent graphic by the NYT on this:
I think I was reflexively lashing out against some people I know that constantly complain about gas, yet choose to drive large trucks and definitely aren't struggling to make ends meet. For them I suppose it's just another topic for small talk, much like the weather.
Maybe those people should buy oil futures, or stock in energy companies then. That way, when oil prices rise, they can cash in on their investment and cancel out the higher gas prices. If they have some financial leeway, they don't have to be a slave to gas prices.
But also: we've seen swings of +95% within the past 3 years -- so at the peak, people were complaining about an effective 5% pay cut.
And not everyone complains. I have a tiny commute, a professional job, and live in an expensive city where housing costs dominate -- so even double the gas price is a curiosity ("OMG I've never seen a tank cost that must") rather than a serious pain-point.
On the other hand, many people are far above that 4.8% average spend. They have long commutes and fuel-inefficient cars. Poor people, especially, tend to spend relatively more of their income on gas.
So when the price of gas goes up 95% (as it did from Jan-2006 to Jun-2008), and you have an older car and above-average commute -- you may have just taken a 10%-plus pay cut, when you may have been living hand-to-mouth already. Such people are honest about higher gas prices "killing them".