High price of gas hits home

A trip to Illinois and Indiana last week gave us a view of the economic future — and it doesn’t look pretty.

Gasoline prices were $5 per gallon and diesel was going for as much as $7.28 along Interstate 80. Prices are even higher in California, exceeding $6.15 for gas and nearing $9 per gallon for diesel this week.

Storm Lake gas is about 75 cents cheaper than Illinois, but Iowa prices are still the highest in history. In mid-February, two weeks before the U.S. attacked Iran, gas here was going for $2.15 per gallon.

We haven’t even seen the worst yet. Energy analysts say fuel prices will continue to increase significantly because of the Iran War.

With semis carrying 150 to 300 gallons of diesel, a tank of fuel can cost upwards of $2,700. Diesel locomotives hold up to 5,500 gallons, so the cost for railroads is scary high. Higher fuel costs for trucks and trains mean higher costs for the stuff they deliver to U.S. consumers. And more expensive fuel for tractors and combines means lower profits for the farmers who operate them.

Gas isn’t the only commodity that’s going up. Ground beef is selling locally for $8.47 per pound, and if you’d like to treat yourself to a steak, ribeye is going for $29.98 a pound. I don’t remember beef prices this high in my lifetime of 76 years.

President Trump’s answer to high beef prices was to allow South American cattlemen to flood the U.S. market with 300,000 tons of “mystery meat,” so-called because Trump won’t say where it originated. We think most of it comes from Brazil and Argentina, undermining the U.S. cattle producers.

These rising gas and grocery prices have increased inflation, so last week the Federal Reserve raised the interest rate, meaning you will pay more for a car loan or house mortgage.

Our political leaders have made catastrophic mistakes in judgment. We have turned our best customer, Canada, against us. Our best soybean customer, China, found better sellers in Brazil after Trump tariffed the life out of them. Our national debt has hit a record $40 trillion while wasteful government spending on war and big monuments to President Trump continues  unchecked by Republicans who control the do-nothing Congress.

Inaction by Congress shut down the government from Feb. 14-April 30, and Congress just adjourned last week for 48 days ahead of the elections, leaving work on stabilizing the economy undone. But don’t worry, Representatives and Senators are still collecting their full $174,000 salaries plus expenses while regular government employees go unpaid.

Congress hasn’t passed a new Farm Bill since 2018. It would be nice if Iowa’s senators and representatives would get to work, but that isn’t happening. Meanwhile, their lack of action is costing Iowans money at the gas pump, the grocery store and the bank. And it looks like it will get worse before it gets better.