Are rising gas prices automatically a bad thing? They certainly cause a fair amount of economic pain, which, at first glance, makes them seem entirely negative. I'd like to suggest, however, that for several reasons, rising gas prices are actually a good thing.
First, several disclaimers:
- I'm not an economist
- I am lucky enough to only have to drive my car about 5 times a month, so I haven't felt the economic pain directly
- I recognize that because high gas prices are unpopular, it may be a useful campaign tactic to blame them on Bush
This diary was prompted by the following email I received from America Coming Together, which follows in extended copy.
Dear Activist,
On Tuesday, May 24, 2004 members of the Madison and Milwaukee community will gather at local gas stations to make a statement against rising gas prices. Today, the average national price per gallon is $2.03 and prices are not expect to peak until June!!! These prices are the highest they've been in 21 years. The price increase is almost certain to cause a crippling effect on the economy, including an impact on the aviation industry, trucking industry and any other sector that relies on stable, affordable gas to remain profitable.
In the long-term, we need to lessen our dependence on foreign oil. This isn't only an economic issue; this is a national security issue. Reliance on foreign oil leads to a less-stable economic future than investing in renewable, American-produced forms of energy. Please join us on Tuesday as we protest the current administration's inaction on this important issue.
[snip - event details]
Thank you,
Kim Puglio
America Coming Together - Wisconsin
There's more on ACT's take on gas prices here.
I wrote her back, beginning with this:
Dear Ms. Puglio -
I received your email with very mixed feelings. I generally applaud the work that America Coming Together is doing, and I certainly support your overall goal of re-defeating Bush in November. I am confused, however, as to why you are protesting rising gas prices. Frankly, I think higher gas prices are an excellent thing for America. I wish they were even higher.
Why?
High Gas Prices are a Good Thing: The Political Arguments
Due in part to timing, in part to blaming OPEC, in part to reality and in part to confusion, the issues of higher gas prices and the war in Iraq have become linked. IMHO, the Iraq war is at least in part about oil and the continued profits of Haliburton. If this link is maintained in the average consumers mind, it is a way of internalizing the external costs of cheap gas. In other words, gas prices are/should be higher to account for the cost of the armed forces, the pentagon, all those private contractors, and the sheer horror of what we're doing over there. If people who are pissed off about/hurt by higher prices think it's about the war, support for the war should drop. This is similar to the argument that if people think it's Bush's fault, they're less likely to support him. This isn't my main argument, however. That comes next.
High Gas Prices are a Good Thing: The Environmental Argument
I'd like to take several things as givens:
- Cars cause and/or contribute to many social ills, including climate change, air pollution, traffic congestion, excessive pavement, social isolation, obesity, litter and sprawl. In general, I view cars as a necessary evil.
- SUVs (as currently constructed) come straight from the devil.
- In general, mobile sources of pollution (like vehicles) are under regulated.
- Mass transit is good, and most places need to improve their mass transit infrastructure, as well as a bike and pedestrian friendly infrastructure.
High gas prices have the potential to spark several important changes in consumption trends. Because they encourage people to drive less, they can have an immediate positive impact on all the social ills caused by cars (see #1 above). High gas prices also encourage people to use alternate forms of transportation, including mass transit and biking or walking, which can improve individual health and quality of life, and encourage governments to take these modes of transportation seriously. In addition, decreased consumer demand means more supply for business, which could lessen the impact of high gas prices on the price of everything else.
In the longer term, higher gas prices make consumers think twice about buying cars with low fuel efficiency, particularly large SUVs (and
fewer SUVs make our roads safer for everyone), and encourage them to consider alternatives like hybrids or
car share programs, which also reduce air pollution and all those other car related social ills.
The Island Press Environmental Issues Forum has an interesting argument for
Hybrids as the solution to high prices.
I fully realize the cost that all this has to individuals. There is something seriously wrong when people don't make enough to buy the gas they need to get to work. However, I'd argue that at least some of this economic pain is inevitable, and that if there's going to be pain, it should at least be moving us in the right direction: Away from cars, and our obsessive dependence on fossil fuels. The other thing I haven't addressed is the ability of car companies to produce more efficient vehicles
today if they cared to. It's not all up to the consumers - if car companies offered us better choices, we wouldn't have to worry as much about these issues. Still, I think that higher gas prices could be a positive thing.
The car is so enmeshed in American culture that, absent high gas prices, there is very little that will make consumers change their driving habits, which is something we desperately need to do if we are to preserve our health, our environment, and our security.
So what do you think?