Time to worry about gas prices?

So far no, but the numbers are edging higher - an average gallon of regular in the L.A. area shot up by more than 12 cents over the last week, to $3.947, according to the Auto Club. That's almost 50 cents a gallon higher than a year earlier, and we're not even in March and April, when prices typically move higher. As has been pointed out before, gas prices are among the most direct economic gauges that a consumer comes across day in and day out. Never mind that Americans spend less than 5 percent of their disposable income on gas, or that even a significant hike in prices only amounts to an extra few dollars per fill up. It just feels bad. And of course, there can be legitimate economic impacts. From the WSJ:

Oil prices affect virtually every aspect of the U.S. economy. Higher prices at the pump force consumers to cut back spending on discretionary items like restaurant meals, haircuts and family vacations, hurting those industries. Manufacturers face lower profit margins as they pay more to get their products to market and face higher costs for plastics and other petroleum-based materials. A prolonged increase can drive up inflation and drive down hiring. "It has the power to derail an economic recovery that's not looking very strong already," said Paul Dales, an economist for research firm Capital Economics.

Let's also not forget the politics of higher gas prices. Republicans struggling to find traction this spring and summer could put the blame on President Obama. A president normally has little to do with the vagaries of the oil market, although that could change if Iran enters the crisis stage.