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Wed February 23, 2011
Rising gas prices & Michigan's economy
A Comerica Bank economist says rising gasoline prices shouldn’t hurt Michigan’s economic progress…too much. Unrest in the Middle East is forcing global crude oil prices to rise, which is pushing up gas prices in Michigan and elsewhere.
According to GasBuddy.com, Michigan’s average gasoline price jumped 15 cents yesterday. Dana Johnson is the chief economist with Comerica Bank. His recent most recent gauge of Michigan’s economic strength shows a third monthly decline. But Johnson says rising gasoline prices shouldn’t be too big a drag on the state’s economy.
"It would definitely act, in effect, like a tax that most people couldn’t avoid who pretty much need a certain amount of gasoline to live their lives. But it’s not of a magnitude that would untrack the expansion. It would just make it a little less vigorous.”
Johnson says rising gasoline prices will not send the state back into a recession.