High gas prices effect on economy,The pain at the pump has risen significantly this week. On average, North Carolina is paying an extra 12 cents a gallon for regular gasoline than just a week ago. AAA reports the average price for regular unleaded in our state is now $3.88 . "It used to be $25 to fill my car up a 4 door sedan 4 cylinders,” said a driver . “Now, it's, costing almost $43.”How high will gasoline prices set for this summer? Nobody knows for sure. It goes by supply, the prices jumped up nearly 25 cents in the past few weeks, and residents are beginning to wonder on the effect they are feeling at the pump to fill up their tanks.
You have to really plan and budget so tightly now just for the fuel cost of getting back and forth to work and basic essential travel,” said another driver James Anderson .This hike in gas prices at the jump continue to impact everybody not only in North Carolina, but the entire country. People drive their cars all the time to work and back home. So, it's really putting a pain on the neck and strain in the pocket. Economist blame the unrest in the Middle East for the price hikes. And the more the cost climbs, the bigger the hit on our economic recovery efforts. " Most of that gas money is going out of the country, so it's like a tax on us, according to NC State Economist Mike Walden. “What we will likely see happening is the rate at which we're seeing improvement in the economy, which is modest any way but slow down even more.” According to president Obama during his recent interview with NBC on the perpetual rising cost of gas and how soon he can deal with the problem. The answer to that question was that "the oil speculators are dully responsible for the gas high prices, taking advantage of Middle-East crises and now, politicians have called and requested for immediate resolution, president added that there is no silver bullet out there to ensure how to immediately solve the gas hike.” Every body will agree that in a struggling economy, every penny counts with less boarding on the middle class residents. Rising fuel costs affects everything, from driving our vehicles to driving up the price of the things we purchase, including the food we buy and those increases are being seen week by week ..A lot of economists believe that the pain at the pump could stunt business growth, indicating that higher oil prices could lead to higher costs for most goods and cause consumers to pull back on purchases. That could slow the recent business expansion and persuade owners to postpone hiring. The state's unemployment rate has been stuck at 6.3 percent for four months. It could also cut into tax revenue, complicating the job of lawmakers as they deal with a $14 trillion budget deficit. When oil prices increase, it will link with the cost of doing business . There will be an upward pressure on inflation. It will hurt the economy that is already recovery from the past recession. Some economists have made conflicting assertions, some say the gas prices hike right now is related to market and investor speculation of what could happen to the international oil supply due to all the unrest in the Middle East, particularly Libya. It is hoped that the presidential task force on this oil speculation, lead by Attorney General Holden to root out cased of fraud and manipulation in the oil market. It must be done sooner than later. On the hand, if the politicians in the congress can avoid being joke for once, get involve and do the right, the price for gasoline will drastically come down.

 source: examiner