Video: How high gas prices will impact the economy this Easter

posted at 6:00 pm on April 23, 2011 by Ed Morrissey

Average gas prices at the pump have skyrocketed (“necessarily”?) in the past month, going up more than 30 cents per gallon. In a period where wage growth has been flat or negative, the sudden shock of higher fuel prices and their related inflation in food prices have put a big dent in the disposable income of many households. CBS News takes a look at how that will impact Easter holiday plans this weekend in this video clip showing plenty of second thoughts as people fill their tanks at the new prices. If people choose to stay home rather than travel, the consumer economy will take a significant hit:

Barack Obama is “taking action”? Er, not really. He’s calling a task force together to look for abuse, which will do exactly nothing to lower gasoline prices. We need to expand domestic production and refining capacity in order to address the fundamentals of the instability of the fuel market. Until we do, we will continue to see prices fluctuate based on political unrest in producing countries, greater demand from developing industrial nations like China and India, and the lack of will to find our own resources and keep our own dollars in our own economy.

Have the gas prices changed your holiday plans this Easter holiday or spring break? Take the poll:


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“Barack Obama is “taking action”? Er, not really. He’s calling a task force together

Calling together a ‘task force’? Get real, Barry.

What a clueless putz is he.

Inspires me to double down on UGA options. Thanks to Øbama’s anti-energy policies, this crap is going to get a lot worse before it starts to get better.

petefrt on April 23, 2011 at 10:02 PM

Just once, I’d like the Pretender-in-chief to ‘help us understand… what isnyour definition of subsidies to the oil companies.’
What golden turds would be on tape, from this clueless idjit !!

onlineanalyst on April 23, 2011 at 9:52 PM
Great link, thanks.

pambi on April 23, 2011 at 10:03 PM

Just once, I’d like the Pretender-in-chief to ‘help us understand… what isnyour definition of subsidies to the oil companies.’
What golden turds would be on tape, from this clueless idjit !!

Good griefies.. Preview is our friend !!
I would like him to be ASKED that question… Sorry.

pambi on April 23, 2011 at 10:05 PM

Just once, I’d like the Pretender-in-chief to ‘help us understand… what isnyour definition of subsidies to the oil companies.’
What golden turds would be on tape, from this clueless idjit !!

onlineanalyst on April 23, 2011 at 9:52 PM

Would make an excellent debate point for the 2012 elections…. GOP are you paying attention.

I would love to see some ads with Dr. Chu talking about how he thinks the cost of gas should be the same as it is in Europe. If the Secty of Energy thinks gas prices are too low at $4 per gallon, why does the One need to investigate price gouging???

kringeesmom on April 23, 2011 at 10:11 PM

Obama’s energy plan:
– Check the air in your tires
– New drilling moratorium
– Buy a $40K 4 passenger Hybrid econobox
– For large families, buy a hybrid van that doesn’t exist
– Windmills
– Solar Energy

Palin’s energy plan;
– Drill Baby, Drill!

PatMac on April 23, 2011 at 11:17 PM

Obama’s energy plan:
– Check the air in your tires
– New drilling moratorium
– Buy a $40K 4 passenger Hybrid econobox
– For large families, buy a hybrid van that doesn’t exist
– Windmills
– Solar Energy

Palin’s energy plan;
– Drill Baby, Drill!

PatMac on April 23, 2011 at 11:17 PM

You forgot to add – paint your roof white and gas prices as high as Europe.

kringeesmom on April 23, 2011 at 11:26 PM

May Obama pay the price.

Schadenfreude on April 23, 2011 at 11:40 PM

Ha, full on majority was gonna stay at home anyway. Says something about the electorate…

galenrox on April 24, 2011 at 12:57 AM

Bush $4 a gallon, MSM has a cow every day. Oblama not so much..

tbear44 on April 24, 2011 at 4:48 AM

greater demand from developing industrial nations like China and India, and the lack of will to find our own resources and keep our own dollars in our own economy.

Starting to sound like Trump there Ed.

abobo on April 24, 2011 at 6:57 AM

you mean like FDr got blamed for the “Hover’s depression” the liberals will call this Bush’s depression 70 years from now

unseen on April 23, 2011 at 9:08 PM

There won’t be any Liberals 70 years from now, or rather, none that will admit it. Very few are going to survive the coming purge, those that do are going to have a major change of heart not to mention ideology.

Barry Soetoro will go down in history as the destroyer, and one of the things he will have destroyed is the Democrat Party and the bulk of the Left here in the USA, of course there will be great damage to the rest of us as well.

PakviRoti on April 24, 2011 at 8:00 AM

Going to church, but staying home otherwise. I heard and seen all kinds of oil and econ experts talk about the rise and betting on how high it will go but not one has given the real reason. It’s inflation and the strength of the dollar. It takes a lot more of them to do anything and buying gas is the most glaring.

Kissmygrits on April 24, 2011 at 8:40 AM

In a period where wage growth has been flat or negative, the sudden shock of higher fuel prices and their related inflation in food prices have put a big dent in the disposable income of many households.

“Disposable” income? That’s been gone for two years. Now we’re into the “indispensable” income.

Squiggy on April 24, 2011 at 8:45 AM

Unfortunately Ed, this time around gas prices have less to do with drilling and refining and more to do with the Fed’s dollar printing…

but anyway, have a Happy Easter.

PatriotRider on April 24, 2011 at 9:41 AM

when Bush was president and oil prices went up there were great gyrations from the right to explain why it was not really his fault and conspiracy theories in abundance from the left as to why it was.
Now that Obama is president the shoe is on the other foot and the hyperpartisans stir up the echo chambers with the same tactics they abhorred in years past.

But it is kind of cute to see how many tingles up the leg each piece of bad news gives to the hyperpartisans on the right. People out of work? Awesome! better chance to see Obama lose re-election. Gas prices causing major pain to working families? Superlee dooper! one more reason to see “the one” get defeated.

All too predictable and all too pathetic…

Bradky on April 24, 2011 at 9:53 AM

Was going to stay home anyway, but my plans for a June family reunion are on the chopping block.

rbj on April 24, 2011 at 11:04 AM

I’m not traveling for Easter, but in an unrelated event, my family is flying across the country for my wedding.

Count to 10 on April 24, 2011 at 11:12 AM

Raise the amount of CASH required for future oil contracts… That will stop this insane speculation…

Khun Joe on April 24, 2011 at 11:13 AM

All too predictable and all too pathetic…

Bradky

Yes. You are. Thanks for taking the time out from kissing your Obamassiah’s ass to educate us on our short comings.

GarandFan on April 24, 2011 at 11:45 AM

Was looking at one of the videos from Barry’s campaigning in San Francisco. The young lady wanted to know why we were borrowing money – why couldn’t we JUST PRINT IT.

GarandFan on April 24, 2011 at 11:48 AM

when Bush was president and oil prices went up there were great gyrations from the right to explain why it was not really his fault and conspiracy theories in abundance from the left as to why it was.
Now that Obama is president the shoe is on the other foot and the hyperpartisans stir up the echo chambers with the same tactics they abhorred in years past.

But it is kind of cute to see how many tingles up the leg each piece of bad news gives to the hyperpartisans on the right. People out of work? Awesome! better chance to see Obama lose re-election. Gas prices causing major pain to working families? Superlee dooper! one more reason to see “the one” get defeated.

All too predictable and all too pathetic…

Bradky on April 24, 2011 at 9:53 AM

No, the only thing “All too predictable and all too pathetic” is your willful ignorance of the one major difference in the two scenarios.

When the gas prices went up under Bush and the Left started blaming him for it, they controlled the Media and the Message, and the Media was all too willing to parrot their talking points and also blame Bush.

This time around, they’re blaming everyone BUT the same guy they blamed earlier-the President.

Funny how in just a few years ago, it was all Bush’s fault in the media, but in 2011 not a peep from them about it possible being O’bama’s fault.

Democrats blame Bush for high gas prices

WASHINGTON (AP) — Consumer gasoline prices continue to soar as the Bush administration places too much emphasis on drilling reserves and not enough on alternative fuels, Democrats said Saturday.

In his party’s weekly radio address, Sen. Bill Nelson of Florida noted that Brazil has announced it will achieve energy independence this year, something the United States has sought since the country’s first oil crisis in the 1970s.

“In Brazil, drivers are filling up their cars with ethanol instead of gasoline,” Nelson said. “And today in America, President Bush says, ‘We have a serious problem. America is addicted to oil.’”

Nelson said Bush acknowledges the problem but refuses to enact policies to address the issue.

“The administration’s emphasis is on drilling, a strategy many experts say won’t make a dent in the U.S. oil problem,” he said.

Nelson noted how the United States has just 3% of the world’s oil reserves yet consumes 25% of oil production.

“We cannot drill our way out of this problem,” he said.

F-

Del Dolemonte on April 24, 2011 at 12:28 PM

I got gas at Costco yesterday. It was $3.56. I thought wow, this is cheap. Compared to $3.69 at the Mobil down the street. Then I thought, how pathetic it is that $3.56 is now considered cheap.

angryed on April 24, 2011 at 1:03 PM

Obumbles and the Progressives are achieving their goal of high gas prices.

This has been their mantra for years.

If they were consistent with their core beliefs they would be celebrating and giving us press conferences as to why this new level of pricing is for our benefit.

So far, crickets and scapegoating.

Once again, progressives need to hide their intentions and goals instead of confronting the public honestly.

rickyricardo on April 24, 2011 at 1:35 PM

Calling together a ‘task force’? Get real, Barry.

petefrt on April 23, 2011 at 10:02 PM

I think “Task Farce” is the correct spelling…

landlines on April 24, 2011 at 1:55 PM

We stayed home this Easter as usually we like to go out for a nice meal. Even with a raise this year, it’s going right out the window for gas.

I’m beginning to think that soon, it might be cheaper for my wife to stay home as our taxes would be lowered and transportation costs would be reduced.

It’s really sad that our country is capable of so much but our politicians have our hands tied behind our back. Becoming energy independent again should be like the priority we had during WWII.

Our security really depends on it and I feel like it won’t take the price to get to $5/gallon before sink back into a major recession (not that we really came out of the last recession).

gatorfanatic on April 24, 2011 at 2:27 PM

Barack Obama is “taking action”? Er, not really.

I have no faith when it comes to government agencies.

The Alaska Legislature also did an “investigation” and found nothing! I wonder who was behind it… no not really.

Committee Chairman Jay Ramras, R-Fairbanks, said the committee’s findings are based on intuition after spending four months researching and gathering testimony on the issue.

“It seems that in order for refineries to maintain their competitive position in the global jet aviation market, they have to shift costs on to a much smaller more fragile consumer retail gasoline market,” Ramras said.

“We don’t think there’s any illegal activity going on. We think it has to do with two very distinct marketplaces,” he said.

I swear Oblah-blah is taking notes off Ramras, who hates Palin AND owns stock in both oil AND gas AND the TAP AND doesn’t seem to see anyting wrong with it. He is also a day-trader. hmmmmmmmmmmmmmmmmmmmmmmmmmmmm

Yeah I have seen this before and Alaska got screwed 2 years ago. Now it seems it is the Nations turn.

upinak on April 24, 2011 at 2:30 PM

All too predictable and all too pathetic…

Bradky on April 24, 2011 at 9:53 AM

This would be true, except that it’s demonstrably false.

Many conservatives have called for a coherent, demand based (realistic) energy policy for years… some going back into the Carter administration. Especially those conservatives who support free-market capitalism and a stronger America.

Rather, it’s the reality-challenged environuts and the redistributionists who hamper a sensible policy toward growth in our energy sector.

Nice try with the projection, though.

massrighty on April 24, 2011 at 2:33 PM

But it is kind of cute to see how many tingles up the leg each piece of bad news gives to the hyperpartisans on the

right. People out of work? Awesome! better chance to see Obama lose re-election. Gas prices causing major pain to working families? Superlee dooper! one more reason to see “the one” get defeated.

All too predictable and all too pathetic…

Bradky on April 24, 2011 at 9:53 AM

I don’t know where you see that desire for fellow Americans to suffer at Hot Air. These folks want to help people directly by helping them help themselves and believe that charity is personal and begins in the home. Over at the Daily Kos where the rich must be punished by higher capital gains taxes even if it lowers government revenues; all charity is from the government and has nothing to do with any personal responsibility either by the giver or the receiver of the charity.

KW64 on April 24, 2011 at 2:34 PM

Let us see where people are hurting. I am paying 4.18 for 87 gasoline.. as I can’t afford the better grades. Diesel is about 4.46 at the cheapest.

Anyone else want to complain?

I know I am going broke going to work.

upinak on April 24, 2011 at 2:39 PM

upinak on April 24, 2011 at 2:39 PM

What makes it worse is, your gas would be cheaper in an unfettered marketplace; you are closer to a source of gas than I am. If it were extracted and refined in an open environment, you’d pay less than average, rather than more.

massrighty on April 24, 2011 at 3:19 PM

So what? This IS what Americans voted for when they voted the Democrat Party into power, and by staying out of politics the couch potatoes assisted the 0bama Borg.

Exit question: How much more do you need to lose before you become one of the people working to fix the mistake made in 2008?

In the meantime, let’s all blast Sarah for her STUPID IDEA. /sarc ;o)

DannoJyd on April 24, 2011 at 3:29 PM

Obviously, the Lion of Libya has inherited high gas prices from Bush.

Dhuka on April 24, 2011 at 3:40 PM

KW64 on April 24, 2011 at 2:34 PM
massrighty on April 24, 2011 at 2:33 PM
Del Dolemonte on April 24, 2011 at 12:28 PM
GarandFan on April 24, 2011 at 11:45 AM

Own your positions or quit your whining. It makes you happy to crow about the high prices of gas because it might mean bad electoral news for Obama. Period dot.
You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

It’s also going to take my business to it’s knee’s and I’m folding my tent in November and closing up shop.

Knucklehead on April 23, 2011 at 7:45 PM

So sorry to hear that. It is hard when your in business for yourself. We had to bail out of 2. Pretty much left us without much retirement. Any idea what you will do?

wi farmgirl on April 24, 2011 at 5:26 PM

Own your positions or quit your whining. It makes you happy to crow about the high prices of gas because it might mean bad electoral news for Obama. Period dot.
You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

That is exactly what the Obama admin should do. Obama and his Secty of Energy want higher gas prices to force us to “conserve”. Steven Chu has said that we really should be paying what the Europeans do for gas. Obama is the one who said under his plan for cap and trade the cost of energy would necessarily skyrocket. Obama is the one who says that if you can’t afford a gallon of gas to buy a new car. It is the Obama admin (the so-called followers of science) who not only ignored it’s own scientists but attempted to delete/obfuscate their reccomendations about drilling in the Gulf. (They said it was unnecessary and potentially unsafe to shut down drilling.). The media has given the Obama admin a complete pass on the price of gas and how his policies are contributing to it. I haven’t seen the video of Dr. Chu on the news lately, have you???

Obama is the one who should look in the mirror and be honest with the American people about his beliefs that we should pay $8 per gallon for gas. He needs to sell his case to the people and let us choose.

kringeesmom on April 24, 2011 at 6:02 PM

upinak on April 24, 2011 at 2:39 PM
What makes it worse is, your gas would be cheaper in an unfettered marketplace; you are closer to a source of gas than I am. If it were extracted and refined in an open environment, you’d pay less than average, rather than more.

massrighty on April 24, 2011 at 3:19 PM

Our gas used to be cheaper in Anchorage than in Seattle. Don’t know what happened but it isn’t anymore.

tbear44 on April 24, 2011 at 6:06 PM

I was doing some digging into Charles Krauthammer, learned some interesting things, I admire the guy. It seems he’s all for energy independance, nukes, drilling ANWR, etc., THE DEALBREAKER THOUGH IS HE THINKS WE SHOULD HAVE MUCH HIGHER TAXES ON OIL TO FORCE US TO CONSERVE, and he’s consistently been for this over a long period of time. I believe cheap energy means freedom and prosperity, not just for America, but for the world, by the way, I was born and raised on a farm and have an idea how the price of diesel and fertiliser impacts the price of food, which seems to have kicked off the turmoil in the muslim world .

bigmike on April 24, 2011 at 6:36 PM

We were hoping to take our kids up to Glacier Park in Montana for our summer vacation, but with gas possibly doubling what it was last year, a long drive across the country and into the mountains is looking like a moneypit excursion.

ace tomato on April 24, 2011 at 8:31 PM

Own your positions or quit your whining. It makes you happy to crow about the high prices of gas because it might mean bad electoral news for Obama. Period dot.
You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

Again, your argument is based on the weak tea of “I’m Bradky, and I say it’s true, so it must be!”

I’ve argued extensively here, and for damn near 20 years, for a broad, demand based energy policy. Painting me as someone who simply wants to attack the current administration is foolish, based on the fact that I’ve pushed the same 5 point energy plan my whole adult life.

Back up your specious arguments, or stop making them; they’re tiresome.

massrighty on April 24, 2011 at 8:52 PM

I-95 north and south in South Carolina was a ghost town today.

SouthernGent on April 24, 2011 at 9:02 PM

Saw some long winded pro electric car show at my sister’s today… As the story goes… these are the beginnings of a new age in auto transportation. They skimmed so lightly over the negatives and stubborn problems with actually powering electric cars that the show was pretty much like an infomercial for a product that is 3 times the cost it should be, and 10 times the trouble of the alternative…
-
Kinda like Obama.
-
Never forget… If you hear a liberal even dare to mention the price at the pump… Beat them over the head with the facts… Obama is pro-higher gas prices. High gas prices hurt working poor families more than it does anyone else. Obama does not care about the working poor… or their children.
-

RalphyBoy on April 24, 2011 at 11:29 PM

You dummies!
All we need is sunshine and puffs of wind and everything is cool.
Now pass the bong!

shorebird on April 25, 2011 at 3:26 AM

I saw $4.45 per gallon w/ 87 octane at a Malibu Chevron last week. Economy is gonna suffer some more….

jbh45 on April 25, 2011 at 9:26 AM

You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

But, I was attacking Bush on his complete lack of an energy policy. So were lots of other conservatives. Liberals want to eliminate fossil fuels. I want more of them. How does that make our positions the same?

hawksruleva on April 25, 2011 at 10:48 AM

This is a strange analogy, but it does work…
Years ago in Baja, Mexico allowed (with paid permits) for the Japanese to come in a fish. They literally stripped Baja of bait, and destroyed the fishing industry. An industry that brought American tourists. They soon found out the impact of not having tourists come and visit and fish a little, but spend a lot.
So it is with gas prices…sounds good to a liberal for people not to drive and stay home…but…hotels, golf resorts, museums, hot dog stands, school activities, shopping, car washing, gardening, miniature golfing, regular golfing, shopping across town, less home repairs, fewer cars be bought and sold.
The economy suffers across the spectrum, and very little at the gas pump. All the business taxes needed for a city to operate, a county, a state, and the feds to operate are diminished. It is compounded by an x factor, far beyond someone just not driving and buying gas.
High gas prices is a disaster to the total economy, the suffering at the pump is minuscule compared to the overall affect of what is happening in the economic downstream.

right2bright on April 25, 2011 at 10:55 AM

Own your positions or quit your whining. It makes you happy to crow about the high prices of gas because it might mean bad electoral news for Obama. Period dot.
You are too obtuse to see yourself in the same mirror the lefties were holding up when bush was pres.

Bradky on April 24, 2011 at 5:03 PM

You are too caught up in talking points to remember three major issue with President Bush (from conservatives).
1. Lack of border control
2. Over spending, and not using the veto
3. Not taking the energy problem seriously
Multiple articles, and debate, and anger at him not producing on those three subjects.
If you don’t remember those debates than you are either very, very, ill informed, or you are just sprouting you basic same talking points without regard to historical facts…but I go for door number three, you embrace both.

right2bright on April 25, 2011 at 11:00 AM

But it is kind of cute to see how many tingles up the leg

Bradky on April 24, 2011 at 9:53 AM

Pal, liberals own that, that was from one of your great commentators…own it, don’t try to throw that off onto us, that was one of your “leaders”/mentors.

right2bright on April 25, 2011 at 11:10 AM

Milk: $2.49 for a quart.
Coffee: $14.19 for a tin of Yuban. $9.99 for the “house” brand
Tomatoes: $3.49lb.

betsyz on April 25, 2011 at 11:23 AM

I traveled for Easter… we drove 900 miles both ways, 10-11 days. It was still much cheaper than flying. Plus driving is more flexible and we almost finished a 24 hour book. I hate when there is book left at the end of the trip! Now we have to find another short trip to finish the book!

We travel very well in a car… if we have to travel with other people we go nuts, they have to stop everytime we just get settled in… very frustrating. No wonder they fly.

We have a Yukon… it was about $100 to fill the tank twice both ways for a total of something less than $400, we had enough gas to go where we wanted during the trip. There are four of us so find me a plane ticket and rental car for that price for four people.

It is getting closer however.

petunia on April 25, 2011 at 11:36 AM

That is 10-11 hour days… not that many days.

petunia on April 25, 2011 at 11:37 AM

I’d pay $8/gallon just to insure that Obama is a one termer…

PatriotRider on April 25, 2011 at 11:39 AM

I’d pay $8/gallon just to insure that Obama is a one termer…

PatriotRider on April 25, 2011 at 11:39 AM

Yes’um

betsyz on April 25, 2011 at 11:45 AM

1973: “We need to build more refineries and increase production of our own resources.”

1980: “It will take at least ten years to build enough refineries and increase production of our own resources.”

1990: “It will take at least ten years to build enough refineries and increase production of our own resources.”

2000: “It will take at least ten years to build enough refineries and increase production of our own resources.”

2010: “It will take at least ten years to build enough refineries and increase production of our own resources.”

catmman on April 25, 2011 at 12:01 PM

1973: “We need to build more refineries and increase production of our own resources.”

1980: “It will take at least ten years to build enough refineries and increase production of our own resources.”

1990: “It will take at least ten years to build enough refineries and increase production of our own resources.”

2000: “It will take at least ten years to build enough refineries and increase production of our own resources.”

2010: “It will take at least ten years to build enough refineries and increase production of our own resources.”

catmman on April 25, 2011 at 12:01 PM

Exactly.

petunia on April 25, 2011 at 12:38 PM

Gee, you’d think at $5-8 per gallon you could build a refinery ILLEGALLY and still make money….hmmmm????

Screw em, just build the dam% things already.

The Ayatolla of Rock and Rolla …. “just walk away.”

orbitalair on April 25, 2011 at 12:46 PM

March 2000: Average price more than $1.50 per gallon

As the global economy kicked in and countries such as China and India needed more automobiles, the demand for oil grew around the world. As Americans also continued to drive in larger numbers and the population also grew, demand for gasoline quickly outstripped supply. Oil companies couldn’t keep up so crude oil prices rose to above $1.50 in March of 2000. Just a year previously, gas prices were less than $1 for the last time in American history.

July 2008: Gas prices spiked to more than $4 per gallon

The global economy grew and gas prices spiked at $4.17 in July 2008, the highest nationwide average ever, according to the Energy Information Administration. Oil imports were also at an all-time high at around 10 million barrels per day. Gas prices are currently approaching those levels with a national average of $3.74.

Had to insert this here, because the dishonest author omitted it by malintent

January 2009 – 1.85/gallon

Spring 2011: Gas prices hover near $5 in some areas

By April 2011, some states saw gas prices topping $5 for a gallon.

William Browning is a research librarian.

Schadenfreude on April 25, 2011 at 11:38 PM

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