RS 12: Interview
Project Reaction
When
we were first assigned this project, I really questioned what the purpose
was. I thought that it was going to be a
waste of my time and was “busy work”, but I can admit that I was wrong for
jumping to conclusions. This assignment
taught me that the economy can change so quickly. Within time span of just over 50 years the
economy changed tremendously and it was really interesting to be able to see
how it changed.
The
one thing that really caught my attention was that gas cost at most $0.25 cents
when my grandmother started driving and was just under a dollar when my mom
first started driving. To me that sounds
crazy because once I started driving it was around $3.50. There is a 55-year
difference between me and my grandmother and the price of gas multiplied by
14. I always used to wonder how that was
possible because 55 years ago cars were not as popular as they are today. Gasoline is an elastic good, which means that
people will buy it no matter how the price changes. Because the demand for gasoline is so high
and the there is a strict supply of gasoline, gas companies can get away with
charging a high price of $3.50 for gas.
Today if they charged $0.25 for gas people would be filling their cars
up everyday and stocking up on it, which in the end would result in a gas
shortage. So from this analysis I can
expect to see gas prices slowly increase because of the current demand and
strict supply of gas.
 |
| In 1964 gas was $0.20. |
 |
| Gas prices in 1978 were around $0.55 to $1.00. |
 |
| Today gas prices vary based on state, and can range anywhere from $3 to close to $5. |
Another thing that really shocked
me was the first wages my grandmother and mom earned compared to my first
wage. When I was twelve I worked part
time at a day care and received $6.25 off the books. For my mother’s first job she earned
approximately $20,000 for the year at the age 20. My grandmother earned even less at $20 for
the week. When my grandmother told me
that she earned $20 for a week, my jaw literally dropped. To me that is impossible to live off of. When I go food shopping with my mom she
spends approximately $150 for a family of four; $20 a week would not even be
enough for us to get a weeks worth of groceries. This just goes to show how much the cost of
living has changed since my grandmother started working and since I earned my
first salary.
One
thing I did notice that I had in common with my mom and grandma was that we had
the same idea when it came to saving. We
all said that we either switched to a cheaper brand or store brand, or just
decided to live without the product. I
think that this is a common agreement between most people, but I also think it
has to do with the way I was raised. I
know I was taught to not focus on labels and to only purchase what I really
need, so that can be a cause of the similarity of answers. I think that by switching to cheaper brands
we can save money and spend it on other necessities, which would boost the
overall economy.
This
interview assignment taught me a lot.
First off it showed me that the economy really changes over time. Nothing stays the same, and prices really do
change. Also it showed me that people
are forced to make sacrifices when times of economic struggle occur.
