There was a time in this country when ordinary people understood the connection between high gas prices and a sluggish economy. The pain they felt wasn’t just at the pump, but also at the office and in the warehouse.
Higher prices for gas meant job insecurity, slashing department budgets and less money at bonus time, if bonus time actually occurred at all.
There was time in this country when even government economists and network journalists knew this fact.
Over the last decade the biggest problems in our economy has been massive new spending by state, local and the federal government and the lack of stable, low prices for energy.
After adjusting for inflation, oil prices reached a low of $16.80 in today’s dollars in 1998. Since then, with temporary lulls due to a slow economy, the price of oil has marched upward until it now stands at $98 per barrel.
The last time we saw this type of oil price action was back in the Whip Inflation Now days of Ford and Carter, who also presided over expansionist monetary policies.
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Could it be that unemployment, high gas prices, massive state spending and the loose monetary policies that go along with government control are all related?
As our friends over at Political Calculations have observed, there is a connection between high gas prices and unemployment.