Be Afraid: U.S. Economy Is at Risk

Oil prices

Why it’s a problem: Rising gasoline prices drain domestic consumption, weakening the economy; major oil-price increases have preceded every American recession except one since World War II.

How bad it could get: If Middle East protests spread to Saudi Arabia, oil could top $200 a barrel and gasoline could reach $6 a gallon, plunging the United States into deep recession.

What we can do about it: More aggressively seek alternatives to gasoline-powered transportation. Even dramatically ramping up domestic drilling would do little to shield the U.S. economy from $6-a-gallon gas.