A great deal of attention in the media and the blogosphere has been given to the rapid rise in gasoline prices in recent years. Politicians, pundits, and everyday folk seem to be focused on ways to lower gas prices. I disagree wholeheartedly. We should let gas prices continue to rise without intervention.
Expensive gas drives travelers to other means of transportation. We've already seen increases in transit use around the nation. Many transit agencies were facing budget shortfalls as subsidies shrink and operating costs rise. The revenue from extra travelers could help to turn things around.
Bike use is also on the rise -- I see a great deal more people biking to work these days than I have in the past, and I've been doing it for years. As the saying goes, an ounce of prevention is worth a pound of cure. We all know exercise is beneficial, and commuting by bicycle, or even walking more often, can be that bit of exercise that puts the average American on track to being more healthy.
With more expensive gas, people drive less. Reduced vehicle emissions are better for the environment. People switching to hybrid or electric vehicles will also improve the quality of our air.
It won't just be people driving less, either. Companies will spend less on transportation, meaning you're likely going to see an increase in local products. The cheapest way to "eat local" is to make it too expensive to "eat remote." The manufacturing sector could also benefit if producing and transporting goods from factories in Asia becomes more expensive than from Michigan or Ohio.
A rise in food prices due to transportation costs might also get people to eat less. The average American waistline could definitely benefit from that.
One of the most beneficial aspects of expensive gas is the technological change it can bring about. No government policy on energy research or development of alternate fuels will do as much to drive that activity as an increase in the cost of our most common fuel source. If it becomes profitable to develop technologies around different types of fuels, someone's going to do it! That's capitalism at work, baby.
If you care about the health of the average American, mass transit, local food, the environment, the return of American manufacturing, or the forward march of technology, you can't seriously consider lower gas prices a good thing. Think of it as a societal and an economic stimulus package.