Perspective can be good medicine, but it’s not always an easy pill to swallow.
I don’t like paying high gas prices, and I truly hope that President Biden’s proposal to suspend federal gasoline and diesel taxes will help ease some of our economic pain. The 18.4 cents per gallon in federal taxes would save each of us about $2.76 on a 15-gallon purchase. I will take it, but I also need to take a hard look at other things I am spending money on. Some people will continue to spend their dollars on gasoline. Others will make lifestyle changes. I am not judging either, but I do share a perspective on pricing that helped open my eyes.
Business Insider published a report showing how much Americans spend on gasoline by state, using data from 2016. For Iowa, the average amount ranged from $1,001 to $1,300 per year. Let’s assume we are on the high side of that range, and let’s assume prices have doubled since 2016. That would mean the average Iowan would spend $2,600 per year on gasoline. I spend more than that, and, as such, that may sound like a low number to many of you, too. For those of you who don’t drive much, $2,600 may seem high. Keep in mind this is an average. Meanwhile, that $2,600 breaks down to $50 per week, which is currently about 11 gallons of standard gasoline here in central Iowa.
With gas prices up about $2 per gallon recently, that is approximately $22 extra per week that Iowans are having to fork out. On a daily basis, that’s $3.14 more, and it adds up quickly. To cover that $3.14, Iowans would need to make some spending cuts, like smoking 10 fewer Marlboros per day. Or skipping the tall vanilla latte at Starbucks each morning. Or holding off on three or four Busch Lights after work.
We Iowans may also need to put that fourth tattoo on hold. Or cut back 18 holes of golf. Or cancel the Hulu and Netflix subscriptions. Or buy food that isn’t pre-packaged or pre-sliced. We may even decide to walk, ride a bike or take public transportation to get to where we need to be. And, in worst-case scenarios, those who must buy gasoline may be forced to go without essential food, medicine or health care.
We all make decisions on how we spend our money, and everyone’s scenario is different. And, yes, some folks certainly have more money to spend and don’t feel the crunch as much as others. Breaking down the daily costs of the gas price increases doesn’t make them any easier to accept, but it does provide perspective — and that’s something we all have to swallow.
Gulp.
Have a money-conscious Monday, and thanks for reading.
Shane Goodman
President and Publisher
Big Green Umbrella Media
shane@dmcityview.com
515-953-4822, ext. 305
