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: