Eight reasons to rejoice over $8-a-gallon gasoline

Chris Pummer on MarketWatch gives us a contrarian notion — more expensive gasoline might be just what we need.

And no, not because we’re an evil American people, but simply because we have suffered an economic drag because of our dependency on oil:

Americans should be celebrating rather than shuddering over the arrival of $4-a-gallon gasoline. We lived on cheap gas too long, failed to innovate and now face the consequences of competing for a finite resource amid fast-expanding global demand.

A further price rise as in Europe to $8 a gallon — or $200 and more to fill a large SUV’s tank — would be a catalyst for economic, political and social change of profound national and global impact. We could face an economic squeeze, but it would be the pain before the gain.

The U.S. economy absorbed a tripling in gas prices in the last six years without falling into recession, at least through March. Ravenous demand from China and India could see prices further double in the next few years — and jumpstart the overdue process of weaning ourselves off fossil fuels.

Read the reasons — and actually, they are good ones — here.

— Photo by ewen and donabel on Flickr. Hat tip: JollyBlogger

3 Comments

  1. Thanks for highlighting this one, Jon–great ideas here. I was just having a conversation the other day about $4/gallon gas giving us all a different sense of urgency. The key thing, of course, is what we do with that sense of urgency. New travel technologies, maybe? More walking and biking? There’s gotta be a better way.

    A related story for anyone who’s waiting for flying to get cheaper or better anytime soon:

    http://tinyurl.com/5e4625

    Reply

  2. I’m Allowed One Rant About Fuel…

    When we moved to the Orlando area, one of the first things we noticed was how poorly the roads were laid out…of cars lined up down the road was over a mile long!

    Update No. 2: Jon Swerens points to an article that argues that maybe $8.00 per gal…..

    Reply

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