Ford Motor Company (F), General Motors Company (GM): Spending on Gasoline Hits a 30-Year High

Page 1 of 2

Ford Motor Company (NYSE:F)Good news! According to the U.S. Energy Information Administration, Americans had to spend only 4% of their pre-tax income on gasoline for their cars in 2012 — a sum that hasn’t increased since seven years ago.

Horrible news! According to the same U.S. Energy Information Administration, Americans had to spend a whopping 4% of their pre-tax income on gasoline for their cars in 2012 — which works out to $2,912. That’s the most dollars Americans have had to spend on gas at any time in the past 30 years.

Source: US EIA.

So … which is it? Is this revelation from the EIA good news or bad news? Obviously, it depends a bit on how you look at it (and on which qualifiers you put inside the parentheses). For example, one way to put the EIA’s figures in a positive light is that, if the dollars spent go up, but the percentage of income those dollars represent stays flat … logically, this must mean people are earning more dollars from their jobs. So even if it doesn’t feel like it for many of us, apparently, wages have gone up!

You can also take heart from the fact that, even if the dollar figure of $2,912 sounds bad — “$2,912? Why, that’s a couple of mortgage payments!” — it could have been a lot worse.

According to the University of Michigan’s Transportation Research Institute, improvements in fuel efficiency in American cars have improved fuel economy by 40% since 1970. What’s more, nearly half of those efficiency gains — 17.8% — have taken place over just the past five years. Had they not, then Americans could easily have spent as much as $3,430 on gas last year. That would have been close to 7% of pre-tax income, and easily the most we’ve ever spent on gas, as a percentage of income, as gross dollars — really, by just about any measuring stick you care to use.

Give ‘em a hand
Rant all you want about the greedy executives at Exxon Mobil Corporation (NYSE:XOM) and the $44.9 billion in profits they raked in last year, but when you look at those efficiency figures, the question of “who’s to blame for us spending so much money on gas?” quickly switches to “whom should we thank for saving us so much money?”

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!