"The share of U.S. economic activity has increased in service industries that demand less energy, while sectors requiring large-scale energy resources have become more efficient."
"In 2024, gasoline costs were about 4% of total expenditures for the average American household, compared to 5.4% in 2008 during energy price surges."
"If gasoline prices hold at around $4 a gallon, a worker would need to work 6.3 minutes to buy a gallon, significantly lower than in previous energy crises."
"During the peak of the Ukraine invasion in June 2022, it took 9.2 minutes of work for a gallon of gas, compared to 11.3 minutes in the summer of 2008."
Over recent decades, the U.S. economy has increasingly focused on service industries that require less energy. Concurrently, energy-intensive sectors have improved efficiency. Household wages have risen, resulting in energy costs, such as gasoline, constituting a smaller portion of total expenses compared to previous energy shocks. In 2024, gasoline costs represented about 4% of expenditures, down from 5.4% in 2008. Although gasoline prices have increased, the time needed to earn enough for a gallon of gas remains lower than in past crises, indicating improved affordability.
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