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Skyrocketing Gas Prices

Posted by Larry Doyle on April 11, 2011 2:15 PM |

“LD, how are we going to be able to ‘navigate’ the economic landscape with gas prices headed to $5.00/gallon?”

Gas Prices

Great question. Our economic navigating may be relegated to a bike. I will make a point of asking Ben Bernanke and Tim Geithner the next time I see them given that their policies to save the banking system have crushed the dollar and imposed these increasing costs for gasoline, food, and so much more on the American consumer. Congratulations, Ben!! Well done, Tim!!

In all seriousness, our economy will clearly slow given the hidden tax imposed upon it by these skyrocketing gasoline prices.

Navigate accordingly.

Larry Doyle

  • Smokey

    All part of redistributing wealth and costs as dictated by our friends in Washington.

    If you think the elections in 2010 were a groundswell, you ain’t seen nothing yet. 2012 will bring a slew of pitchforks the likes of which Washington has NEVER seen before.

  • coe

    The social scientists should have a field day – for decades a central thesis attached to the American Dream was a call to urban flight – lever up to find your dream home in the suburbs, even the or lease a fancy status-awarding car – fuel economy considerations only a recent phenomena..and join the tens of millions of commuters in the greater metropolitan areas schlepping an hour or two each way to one’s gainful employment (wondering if/when you would find yourself discarded by an unfeeling management team)- whether in NY, Chicago, LA, Boston, DC, SF, Dallas and/or every other major employment’s a shame our national energy policies haven’t kept pace with the explosion in multi-car family formations, in the almost absurd distances and times facing commuters, and in anticipating the power of the geopolitical realities of the oil-producing nations..and though I am of a generation that is technology-challenged, I do think it possible that the computer may structurally and radically change this calculus in time..meanwhile, unless and until we unlock our natural gas resources; rethink the safety issue around the nuclear alternative in a post-Japan way; drill, baby, drill; and manufacture and promote fuel efficient cars at a price that works for Joe six-pack.. guess what – as commodity prices soar, so does the price of a gallon of gas..I’m pretty sure that gasoline is an inelastic reality to many of us – i.e. we have to buy it to get to work – whatever the price..does it alter our discretionary behavior – i.e. fewer cars on I-95 heading to DisneyWorld? pause before packing the family off to a weekend trip to visit relatives? Is this a tax – for sure? Is it hidden – pretty big signs at every gas station would suggest it is staring us in the face every day..I believe there is a price point where citizens will gasp and shout “No mas!” Hate to point out the obvious, but it takes political leadership to redirect our energy policies – it’s not too late..but it does require the strength to take on the sacred cows, and it will require developmental lead time..I, for one, am old enough to remember the gas lines of the 70s – somehow we muddled through, but didn’t really learn our lesson..I suppose as we calculate the cost of a full tank at $5+/gallon while sitting in the same rush hour traffic, we might be inclined to think of the alternatives – truth is the jams are going nowhere fast, and we have plenty of time to listen to both conservative and liberal second-guessers point their fingers at the causes on satellite radio..the list of national and global economic, political, and societal challenges seem to be getting longer and the issues tougher every day, LD..keep punchin’ and help us make sense on cents..

  • fred

    The still unaddressed presidential initiative here is Cap and Trade. Higher oil prices are consistent with the promotion of the President’s campaign promise but contrary to the financial interest of the public.

    Another example of our leadership being out of step with the wishes of the majority and pandering to special interests.

    “We know better than you do what you need”.

    Why are pension and retirement plans allowed to invest in commodities? Being long term inverstors, don’t they put an artificial (non-economic)floor under prices?

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