The 5/15 BusinessWeek mag makes a big deal about the negative correlation between gas prices and Presidential approval ratings (When gas rises, approval tanks; click the thumbnail to the right). They make clear that it is a correlation and not causation:
As it turns out, a BusinessWeek analysis of historical data finds that this problem has bedeviled Presidents at least since 1973, when the Arab oil embargo created gas lines, a price spiral toward 55 cents per gallon, and an additional headache for President Richard Nixon. Of course, price spikes aren't the sole cause of falling Presidential popularity. The relationship is a correlation, and other factors contribute to public perceptions of a President.
Unusually high gas prices are typically caused by something else that people blame the President for. Think about what is also correlated with high gas prices and their effect on approval ratings: Watergate, Iran hostage crisis, "read my lips, no new taxes" taxes and, finally, the Iraq war.
On the other hand, next to the unemployment rate and high inflation (does anyone remember high inflation?), gas prices are the most popular economic indicator used by drivers.
