Summary
The U.S. economy today uses less energy compared to past decades, which helps it deal with possible energy price spikes from conflicts like the war in Iran. Rising wages also mean energy costs are a smaller part of household expenses now compared to previous energy crises such as the one in 1991.
Key Facts
- The U.S. economy is less reliant on energy now compared to the past.
- Service industries that use less energy make up a larger portion of the U.S. economy.
- Industrial sectors have become more energy-efficient over time.
- Current gasoline prices require a household to spend a smaller part of their budget on fuel compared to previous years.
- A gallon of gas in March 2026 costs approximately $4, meaning workers need to work 6.3 minutes to buy one gallon.
- Previously, during high price periods like 2008, it took workers more time to afford a gallon of gas.
- Gasoline prices would need to hit $7.05 a gallon to match the economic impact of high prices in 2008 relative to wages.
- Average hourly earnings are over $37, supporting households against current fuel prices.
