Obama change in gas and food prices, Higher gas prices threaten economy, Jobs added?, Millions of jobs and job seekers lost, WON Whip Obama Now
“If you’re complaining about the price of gas and you’re only getting 8 miles a gallon, you know…you might want to think about a trade-in.”…Barack Obama
“This announcement is not a judgment on the merits of the pipeline, but the arbitrary nature of a deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people,”…Barack Obama
“And if all others accepted the lie which the Party imposed
–if all records told the same tale–then the lie passed into
history and became truth. “Who controls the past,” ran the
Party slogan, “controls the future: who controls the present
controls the past.”…George Orwell, “1984″
Gasoline and food price facts for Truth Team and interested Americans.
Pedestrians help push a motorist who ran out of gas Friday into a station in downtown Los Angeles, where prices topped $5 per gallon. / Damian Dovarganes / Associated Press
I have located several versions of an AP article on gas prices and the economy.
From the AP March 16, 2012.
“Higher gas prices threaten economy if they persist”
“Inflation remains tame throughout the U.S. economy, with one big exception: gas prices.
Those higher prices haven’t derailed a steadily improving economy. But if they surpass $4 or $5 a gallon, experts fear Americans could pull back on spending, and job growth could stall, posing a potentially serious threat to the recovery.
And the longer prices remain high, the more they could imperil President Barack Obama’s re-election hopes.
A few weeks ago, economists generally agreed that the economy was in little danger from higher gas prices as long as job growth remained strong. But fears are now mounting that gas prices could begin to weaken consumer confidence.
The average pump price nationwide is $3.83 a gallon. Energy analysts say it’s bound to climb higher in the weeks ahead.
“It’s a thorn in the side of the consumer and businesses,” said Chris Christopher, an economist at IHS Global Insight. The economy this year “would have been better and stronger if we didn’t have to deal with this.”
So far, higher prices aren’t undermining the economic recovery, which is getting a lift from strong job creation. It would take a big jump — to around $5 a gallon — before most economists would worry that growth would halt and the economy would slide into another recession.
That’s because an improving economy is somewhat insulated from any threat posed by higher prices at the pump.
The risk is that gas prices could eventually slow growth by causing some people to cut spending on other goods, from appliances and furniture to electronics and vacations. Gasoline purchases provide less benefit for the U.S. economy because about half of the revenue flows to oil-exporting nations, though U.S. oil companies and gasoline retailers also benefit.
Many American businesses suffer, too. They must pay more for fuel and shipping and for materials affected by high oil prices, such as petroleum-based plastics. Profit margins get squeezed.
Even if prices ease after the summer driving season, don’t expect gasoline to fall below $3 a gallon. The government estimates that this year’s average will be $3.79, followed by $3.72 in 2013.
Most economists accept a rough guideline that a 25-cent rise in gas prices knocks about 0.2 percentage point off economic growth.
Gas prices also have an outsize impact on consumer confidence, Christopher noted. It’s a high-frequency purchase. Consumers notice the price whether they’re filling up or driving past a gas station.
Along with the unemployment rate and stock market levels, gasoline prices heavily determine how Americans see their financial health.
That effect was evident Friday when a decline was reported in the Thomson Reuters/University of Michigan index of consumer sentiment. The result surprised some economists who had assumed that higher stock prices and lower unemployment would lift consumer sentiment.
The Michigan report showed that “gasoline worries … are outweighing stock market gains and job growth” when it comes to influencing consumer attitudes, said Michael Hanson, an economist at Bank of America Merrill Lynch.
The price of gasoline has climbed 17 percent since the year began — to a national average of $3.83 a gallon. That’s the highest ever for this time of year. A month ago, it was $3.52.”
“So far, higher prices aren’t undermining the economic recovery, which is getting a lift from strong job creation. It would take a big jump — to around $5 a gallon — before most economists would worry that growth would halt and the economy would slide into another recession.”
Which country are they referring to? As evidenced recently in NC and reported here, the NC unemployment rate was adjusted upward to above 10 percent.
Also as reported here several times.
Inflation has been downplayed as well. Anyone visiting a grocery store for the past several years has watched food prices skyrocket, mostly due to rising gasoline prices.
From America’s North Shore Journal March 17, 2012.
The Bureau of Labor Statistics (BLS) keeps track of the average retail price for a number of common items as a U.S. city average. Let’s take a look at a few. We used the price for the month President Obmam was inaugurated, January 2009, and the last month of data available, December 2011. The items are sorted in descending order by the percentage increase of the price during the Obama administration.
|Item||Unit||Jan 2009||Dec 2011||I/D||Perc|
|Gasoline, unl reg||gal||$1.787||$3.278||$1.491||83.44%|
|Fuel oil, #2||gal||$2.509||$3.777||$1.268||50.54%|
|Cookies, Choc chip||lb||$3.114||$3.682||$0.568||18.24%|
|Spaghetti & macaroni||lb||$1.131||$1.306||$0.175||15.47%|
|Eggs, A lrg||doz||$1.850||$1.874||$0.024||1.30%|
CPI Food 2009-2011
WON (whip inflation now)
Whip Obama Now