Are High Gas Prices Going To Force Another Recession?

There are milestones you don’t forget too quickly. When it comes to driving, I still remember opening my wallet, with gas prices $4.19 at the time, to pump each gallon into my car back in Pittsburgh, Penn. That was July 2008, and it happened right as housing bubbles burst, stock markets nosedived, businesses folded up, and car sales plummeted.

As the major commodity that keeps the U.S. moving, gasoline prices play a huge role in food prices, discretionary income, and other general costs of living. It’s inelastic, that is, to a certain extent we’re going to keep driving because we have to.

g2ok - 2/24/2012 5:47:32 PM

+1 Boost

I wonder if those new Presidential campaign buses run on CNG ?

Designer1 - 2/24/2012 3:58:39 PM

+1 Boost

Criminals are running the land! That's all I can say.

g2ok - 2/24/2012 5:46:30 PM

+4 Boost

Yes this will cause inflation and even when the gas price goes down, commodities take a while longer to go back down, so a bad deal for us.

Also it makes Iran, Saudi and Venezuela richer.

drell1emc - 2/24/2012 6:06:21 PM

+4 Boost

re-enact Glass–Steagall Act and that would solve alot of our Country problems.

jtz7 - 2/25/2012 11:35:46 AM

-1 Boost

THERE IS NO AMERICAN DREAM. It died when Clinton left office.

AgentOrange - 2/25/2012 1:57:30 PM

+1 Boost

If they stay high (for more than 6 months), then "YES".

t_bone - 2/25/2012 7:26:04 PM

-1 Boost

Here we go again with sensational news articles scaring away companies from hiring and spending money...a self-fufilling prophecy.