Energy policy impacts American disposable income and manufacturing

Energy availability, reliability, and cost are identified as critical factors impacting American life and political narratives during midterm elections. The cost of energy directly influences disposable income by affecting expenditures on home heating, cooling, and groceries.

Transportation costs, specifically gasoline and diesel, impact the ability of citizens to travel for work or extracurricular activities. Furthermore, energy costs drive the pricing of manufactured goods due to the energy required for production and transportation. The U.S. Energy Information Administration reported that drivers are expected to spend less than 2% of their personal disposable incomes on gasoline in 2025, which would be the lowest share since 2005, excluding the 2020 pandemic period.