Gas Prices Will Impact Recovery

A lot of people say rising oil prices is a good sign-- a sign of a growing economy based on demand for more oil. Those people are usually tied in some way to the oil industry and make a living off of Big Oil.

Check this brilliant statement out from an economist at North Carolina State University, Mike Walden [who I don't believe to be tied to the oil industry, I just think his comment is off the mark].

"If they go up slowly, we can accommodate that," he said. "I think, even at $4 a gallon, that will not kill the economic recovery.'"

Ahhh yes, an economy with 10% unemployment and meager GDP growth can accommodate $4 gasoline.  Genius I tell ya.  'Fraid not buddy. Maybe if unemployment was 2% and GDP growth at 5% we could sustain expensive gasoline for the short term. But we are talking about an economy living on the edge of disaster. $4 gas would be all it would take to send us right back into a deep dark recession.  In fact, there may be nothing that would send us back into a recession quicker than $4-$5 gasoline.  And there may be nothing to bring down Obama's approval rating quicker either.