Dem
51
GOP
49
Yesterday, we had an item on an Economic Policy Institute report that claims almost 10 million low-income workers are set to get small-to-medium pay bumps in 2024, thanks to new minimum wage laws, with the benefits flowing disproportionately to Democratic interest groups. Consider this item to be a companion to that one.
Today's report is courtesy of GasBuddy, the website/app that tracks gas prices nationwide. The report hasn't actually been released yet, but the findings were shared with CNN. And the topline finding is that gas, on the whole, is going to be cheaper in 2024 than it was in 2023.
To be a bit more specific, the folks at GasBuddy project that the average price of a gallon of gas in 2024 will be $3.38/gallon, as compared to $3.51/gallon in 2023 and $3.95/gallon in 2022. If those numbers hold, it will mean that Americans will save $32 billion, collectively, as compared to 2023 and $79 billion as compared to 2022. On top of that, the projections suggest that the high price will be $3.67/gallon in May, and that thereafter there will be a steady decline to $2.99/gallon by December.
There are two primary reasons for the anticipated decline in prices: (1) global supply chains have been unsnarled from what happened during the pandemic, and (2) U.S. oil production is way, way up. Of course, there is always the possibility of one or more events that throw a wrench into the works, like expanded hostilities in the Middle East, or a disastrous hurricane in the Gulf of Mexico, or OPEC+ turning the screws to try to drive prices up. But, at least based on current information, things are looking pretty good on the gasoline front (unless you are an environmentalist or an Arab sheikh, that is).
As with yesterday's item, we are not going to predict how this might impact the election. However, we will point out three things. First, lower gas prices give the Fed more maneuvering room as it tries to manage a "soft landing" with no recession. Second, as we've noted many times, gas prices are a very visible expense, and something that Joe Biden has been getting beaten up on. If they are headed to pre-2022 levels, you're probably not going to see too many of those "I did that" Biden gas-pump stickers. Third, as we've also noted many times, the most important thing at election time is not absolute price, but the direction in which prices are headed. If gas prices drop in May, and then in June, and then in July and so forth through November, well, that would certainly make the White House very happy. (Z)