Just what we need. When people talk about the potential hazards we may encounter in our economic recovery without any recovery, they usually talk about monetary crisis and recession in Europe or China’s economy slowing from its blistering pace to a slower rate, more characteristic of a developed country. Or they talk about the paiinfully slow, tentative recovery in the housing market.
They haven’t been talking about rising gas prices but that certainly appears to me to be what’s happening. Here in Chicago the gas prices have risen 10% in just the last two weeks. A quick check has suggested to me that’s true in other parts of the country as well.
Some have mentioned unease about the situation in the Middle East but I don’t see much reason to be more concerned now than a month ago. U. S. consumption actually seems to have decreased. I’m at a loss to explain it.
The linked article suggests speculation.
Whatever their cause may be higher gas prices going into the fall are not going to improve the economic picture.
I wonder about the effect of ethanol requirements in the midst of widespread corn crop failures.
Good observation, PD. That may be what the speculation is about.
Here’s some background from AAA:
Link
We own a bakery business. Not your fine pastry business where you go to have coffee and chocolate after your Morton’s steak dinner.
Our biggest customer is WalMart. This is everymans bakery.
We can track sales and disposable income by the month. This month: people have to pay for gas. This month: people have the disposable income for pies.
Obama is an idiot. He has no idea what’s going on out here.
Fire him.