If the price of gas goes much higher the pressure on wages will be immense, especially in urban areas which have job sprawl and poor mass transit. Here in St. Louis for example our remarkable Metro just cut the Cross County and refuses to service large parts of Chesterfield and St. Charles County, which has jobs but needs entry-level workers.
When wage indices go up, the genius Fed led by the Sage Greenspan will jack rates up in response.
recession will turn to depression.
Or people might start to carpool.