Are Higher Gas Prices Really Bad for America?

In 1999, I remember seeing regular gas on sale in New Jersey for 89 cents.  89 cents!  For a gallon of liquid that had to be pumped out of the ground, piped or shipped to land, refined, loaded into a truck, and driven to a gas station.  I can't believe big oil made any money (they did). 

Those days are long over.  Due to a number of factors, including natural disasters, exploding demand,  and economic calamity, the average price for gas in today's America is around $2.85 (Jersey is a bit cheaper).  Still, that's better than the peak in 2008.

Paying more for gas always stinks, but I have the feeling that some good came out of it.  Back in the roaring nineties, cheap gas and a booming economy meant everyone, everyone, was driving around in a gigantic SUV that got 10 MPG.  Soccer moms eschewed pedantic minivans for chic Navigators and Escalades.  I recall seeing such a mom load her two young kids into a Ford Excursion, with a V-10 engine, 8 MPG, and a curb weight of 7,000 lbs.  The low point came with the introduction of the Hummer H2, the automotive mascot of waste, avarice, and poor taste.

The driving public has sobered up a bit since then.  Hummer is dead (yay!), Escalades and Navigators sell in vastly fewer numbers, and more and more compact cars are being sold.  Fuel economy has become the new buzzword on the showroom floor, instead of horsepower and off road capability.

I'm sure there are plenty of people out there lamenting the end of cheap gas, especially in dour economic times such as this.  But considering most Europeans easily pay double for gas than in the states, we should manage.

[Flickr]