President Joe Biden’s economy lifted the national average for a gallon of regular gas over $5 for the first time in history Thursday. The bleak number comes courtesy of GasBuddy, and one JPMorgan Chase analyst has an even more chilling prediction.
Gas prices may shatter $6 a gallon by Labor Day.
That’s not even factoring in the Atlantic hurricane season. If the right storm develops, all bets are off for how high gas may go. Remember, it just passed $4 on average on March 5.
For many motorists across the country, the sad truth is that paying $5 would be a discount. California drivers now pay an average of $6.40 a gallon, and at least one station is nearing an unthinkable $10.
The summer travel season is in full swing, and unfortunately it coincides with multiple other factors that have caused a rapid jump in already high prices. One of those factors is a muddled White House that at times seems pleased with these increases so we will all buy electric vehicles.
Or horses and buggies, with the way this year is going.
For the record, when gas prices in 2006 surged to over $3 a gallon on average nationally, Biden was a senator. In lashing out at then President George W. Bush, future president Biden declared the increase was due to the nation not having an energy policy.
If there’s even slightly good news for motorists, it’s what economists call “demand destruction” may be underway. Since March, national consumption is 6% lower than the corresponding period in 2019.
In other words, gas is so high we’re driving less. So the possibility exists that reduced demand may lower prices a bit.
That’s hardly comforting in the present when soaring gas prices also spark rampant inflation across every sector of the economy. With necessities like gas and food skyrocketing, discretionary spending is unquestionably taking a hit.
Want more bad news for Americans trapped in Bidenflation? A record 537 million new credit card accounts were opened in the first quarter. This likely means that necessities are so expensive that high-interest credit cards are filling gas tanks and grocery carts.
It’s no small wonder that Americans are tired of White House denials that the economy is anything but peachy. No amount of excuses and no dog and pony show distractions will deflect what is right before voters’ eyes.