WHAT IS UP WITH GAS PRICES?

When I went to go fill up my tank this week, I was shocked to see that premium gasoline was at $4.15 a gallon. I can deal with $3.15, but $4.15? What's next $5.00 per gallon? So I didn't fill my tank up as I normally do, and only pumped in $45 worth of gas.

It was only a few years ago when the economy was in a seriously depressed state and high gas prices pushed the fragile economy over the edge. I remember this vividly because all the big trucks and Hummers started disapearing off the road. I started seeing more and more Prius Toyotas everywhere.

Take a look at this recent poll conducted by the Wall Steet Journal. Gas pices and the cost of energy has become a bigger concern than even immigration and the current US wars.

My view is that our economy is now starting to get some strength but gas prices can hamper the growth. According to the latest data from the US Department of Labor in February the economy added a net 192,000 jobs and unemployment dipped to a 2-yr low of 8.9% nationally. In Silicon Valley our unemployment rate is 10.8%. However, California is even in worst shape. According to to the Economic Development Department, California has been at or over 12% unemployment for over 17 months! That's a lot of people out of work.

I hate to sound pessimistic but high gas prices and high unemployment are not a great mix. I feel the pinch in my wallet as I'm sure most everyone does. Money is not infinite. I have a budget. If it takes me an extra $25 to fill my tank every week, that's $100 extra per month with no extra benefit to me or my family. Looks like I'll be eating out less and not going to the movies for a while.

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TOP PRIORITY FOR THE FEDERAL GOVERNMENT

Job Creation and economic growth 37%

Deficit and government spending 22%

Health care 12%

National security and terrorism 9%

Energy and the cost of gas 7%

Wars in Iraq & Afghanistan 6%

Immigration 4%

The Wall Street Journal - POLL Feb 24-28

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