I heard Mike Fox on WTIC 1080 say the other day, gasoline could top $5 per gallon by summer. Fox heads the Connecticut division of the Gasoline & Automotive Service Dealers of America. If that happens, there goes President Obama’s re-election chances.
We keep hearing about the economic turnaround. If there has been one, it has been fueled by too much government spending at the federal and state level. The ripple effect is already being felt at the municipal level, with cities and towns releasing their new budgets, most which include tax hikes. Meanwhile, Connecticut is operating in the red, following the largest tax increase in state history. This Keynesian economic approach cannot last forever.
Five dollars per gallon will be the tipping point. That’s when any artificially fueled economic recovery will be stalled. Vacation plans will change and Americans, who were just starting to loosen their purse strings, will tighten them again. And at $5 per gallon, Barack Obama can kiss his re-election chances good by. It could be an interesting summer.