Gas prices may hurt consumer confidence
Published 12:00 am Sunday, March 13, 2011
- Pete Rodman/Daily NewsCharles Butts of Bowling Green fills his tank Friday at Jr. Food Stores on the corner of U.S. 31-W By-Pass and East 10th Avenue.
Headlines about rising gas prices are negatively influencing public perception of the status of the U.S. economy, according to recent data from the Pew Research Center.
People had positive perceptions of economic news recently, but just two weeks into March, 38 percent of people surveyed earlier this month said economic news is mostly bad, up from 29 percent in February.
And gas prices are fueling the change – 90 percent said they’re hearing mostly bad news about the rising gas prices, up from 77 percent in February. Meanwhile, 62 percent said they’re hearing mostly bad news about food and consumer goods, up from 49 percent in February.
According to Pew, 37 percent of those surveyed said they’re following what’s happening with the economy very closely.
As of Friday, gas prices for regular unleaded averaged $3.48 per gallon in Kentucky and $3.41 in Tennessee. Those Western Kentucky University students returning from spring break are experiencing average prices of $3.57. Nationally, prices for regular unleaded average $3.54.
Prices took a large jump Thursday, increasing by as much as 20 cents in the city.
Brian Strow, associate professor of economics at WKU, said the news of higher gas prices could also stall the progress being made with the U.S. economy.
“If (gas prices) damage consumer confidence, it makes consumers and businesses feel less good about the future. People will spend the same amount of money but they won’t get the same value for it,” Strow said. “Instead of buying gas and eating out, now it’s buying gas and just eating at home.”
Strow said Bowling Green’s economy could see negative effects from the increased gas prices.
“One thing that could be problematic for Bowling Green is that people from surrounding counties come here to eat on the weekends,” Strow said. “Higher gas prices could discourage that now.”
On a personal level, Strow said he is consolidating trips to the store. He said he also carpooled to work with his wife Thursday.
Not only are higher gas prices sparking discussions about family bank accounts, things are getting increasingly political around the issue.
Thursday, senior U.S. Sen. Mitch McConnell, R-Ky., blamed President Barack Obama’s policies for keeping the U.S. dependent on foreign oil sources.
Friday, Obama addressed the situation in a news conference.
“Families feel the pinch every time they fill up the tank,” Obama said. “For Americans already facing a tough time, it’s an added burden.”
The U.S. needs to continue to boost domestic production of oil and gas, Obama said.
He also said he thinks the American people are tired of politicians pulling out the same old political playbook when prices go up, yet nothing changes.
“We’ve got to work together,” Obama said. “Democrats, Republicans and every one in between – to finally secure America’s energy future.
— To track current gas prices in Bowling Green and surrounding areas, visit www.bgdailynews.com/gas.