Americans think twice about summer driving plans

This summer, as families all over the country (especially college students) think about planning their road trips, many are thinking twice about driving 300 miles with gas prices expected to reach $3.50 per gallon by Memorial Day weekend.  They might even be $4.00 by mid-July.  A lot of people I know are either planning less getaways, or are cutting costs on hotel and meal expenses.  The point is that gas prices could have a significant impact on all aspects of the travel industry.

A number of leading economists agree, as explained in the April 27th edition of the USA Today:

In a USA TODAY survey of economists taken April20 to 25, 40% said higher energy prices are the No. 1 risk for theeconomy. While other risks were cited, such as a decline in the housingmarket and terrorism, energy was the top concern.

Economists mentioned that higher energy prices pose potential troubles for both economic growth and inflation.

The latest CNN Poll released a few days ago shows that Americans are fuming:

"Which of the following statements comes closer to your views about the reasons for the recent price increase in gasoline? It is MOSTLY due to unethical behavior by people involved in the production and distribution of gasoline. Or, It is MOSTLY due to a decrease in the supply of oil and an increase in demand for it."

Unethical Behavior - 61%

Supply and Demand - 26%

Neither - 7%

Unsure - 6%

It has also been pretty much established by now that the short-term proposals by both the Republicans and Democrats were insulting.  A $100 rebate would have only lasted a few trips to the gas station.  Also, the elimination of the gas tax for two months was more of a joke than an actual long-term solution.  Both parties need to do a better job of thinking 10 years down the road.

If this still remains a problem in 2008, don't be surprised if Al Gore is the Democratic front-runner, not Hillary Clinton.