Gas prices surge on Labor Day weekend
What's behind the pain at the pump?
- Duration 3:32
- Date Sep 1, 2012
What's behind the pain at the pump?
Also in this playlist...
This transcript is automatically generated
-- course -- Labor Day weekend for many of us at the time for barbecues it's -- authority at the beach at bat as you just.
Heard from the governor surging gas prizes are causing big concerns and caused by hurricane I think this week on the impact of oil production.
That may put a damper on some people's holiday plant joining us now talk more about all this Steve Moore a senior economic writer at the Wall Street Journal Steve great to see you -- -- -- got let's talk for a moment about the timing of this certainly this is not a great time when people are really looking forward -- holiday weekend taking trips.
To see friends and family over the last hurrah for summer what do you make of this and how long -- -- last.
Well the bad news is -- the highest gas prices.
I'm a Labor Day weekend ever.
So we're pan 38390.
A lot of lot of place in the United States are paying over four dollars a gallon I'm sore back to four dollars ago.
That's the bad news the good news is that become part of this is result result of the big storm that knocked out some of the refineries.
In New Orleans and and in the golf.
That they'll be operational impact most of them already are so that should provide some relief but.
You know it's interesting to connect this with what happened yesterday with Ben Bernanke when he gave a speech in Jackson -- He was saying why don't really see any inflation out there.
And I was thinking gee he must I got a grocery starting that must not go to the -- honestly because Americans are feeling the effect of a higher tuition higher health -- prices has -- -- and talked about and certainly have -- higher energy prices you're seeing higher prices at the British version -- and milk vegetables.
I feel -- tropical those things to distort what I -- -- problems when every up rising energy prices and it it's obvious -- energy is an input and everything that we produce in the United States went under the prices rise food prices rise.
Health care prices rise transportation.
Class rise and that's that what's what we're seeing right now but again.
The idea that we're not having inflation out there and economy.
I think some of these economists have to get out there are two of the storm really start buying things because middle class families -- what do they spend their money yeah.
Half almost half of the budget goes for health care.
An energy and those are all rising cost.
The the energy costs right now I mean critically gasoline you expect to see a downward turn hopefully the next couple of months and how.
Critical is that going to be as we get closer to -- -- that well.
It's interesting because if you look back in 1980 one of the reasons Jimmy Carter lost that election was prices were out of control before seeing those higher price of gasoline and -- and that's -- -- that was one of the real contributing factors to Reagan's victory.
So -- this couldn't happen at a worse time for -- -- about I do think the prices are gonna fall but I only mean that they're gonna fall from back to where they were may -- in July 350 if you know maybe 375 but that's still gonna feel very expensive -- people are still going to be.
About twice as expensive as gasoline was costing.
Back when Barack Obama was elected in in 2008.
And news that is a dead the national debt is going to -- surgery this week as a Democrats get sent to holder can -- I think I think that that -- What is -- I don't think it's gone over sixteen trillion I was at an Intel by the you know that that was one of the signature features beyond that Tampa convention -- was the debt clock.
I was very close to sixty joy and I left before it -- it should hit at sixteen mark this week that timing for the never.
Secondly because that really is one of the if you listen to the speeches.
Almost every speech Republicans game really.
President Obama on his record on the -- and that when that I don't think the Democrats haven't that clock at their convention on the I think that -- at this far away as possible -- -- -- -- -- -- for having us -- with us -- appreciate it.