With gas prices skyrocketing, economic conversations often turn into furious complaint sessions pertaining to these rising costs. What is rarely considered is how ridiculously cheap gasoline actually is. Upon comparison to a relatively simple commodity such as Coca Cola whose supply is seemningly limitless, the tremendous impact government subsidies have on one of our most coveted resources is suddenly obvious. When gasoline prices are compared to other liquid products, Snapple comes out costing 5 times that of gas, with nasal spray topping the list at a whopping 230 times the price of gasonline. Free market rationale is without an explanation as to how such a contested resource that requires so much time and energy to mine, convert, and transport can be cheaper than compounds whose complexity is barely beyond combining water and sugar.
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A Realistic Perspective on Gas Prices
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