But examined fairly, it's simply not true. This myth is based on a misunderstanding of one of the most basic of economic concepts: inflation. As the general price level of products rise, a dollar today is worth less than it was in the past. The only fair way to compare the price of a good over time is to use the inflation-adjusted price.

And while today's average gas price is the highest ever in absolute dollars, it doesn't come close in inflation-adjusted dollars. Citing data from the American Automobile Association, numerous journalists have reported that the current average gas price, at $2.05 per gallon last week, was the highest ever. But as Reuters noted, data from the Energy Information Administration shows that in 2004 dollars, gas actually cost $2.99 in 1981. Today's "high" isn't even close.