Sep 5, 2008

I can say this because I live in Bahrain

I like politics, and I enjoy following everything that's going on. Blah blah blah don't know who I'm voting for blah blah blah no good choices blah blah blah.

Anyway, I came across statements by both McCain and Obama regarding energy and gas prices. Both talk about wanting to lower gas prices (through different methods), but they also want to encourage alternative energy sources.

But here's the reality - HIGH GAS PRICES ARE GREAT.

Its all economics. The higher the price for a good, the more likely people are to find something else cheaper to replace that good. For instance, if I like McDonalds, but they raise their prices to $10 for a meal, I will find a replacement. Burger King. Price has gone up, and I have an incentive to spend less money - for relatively the same benefit - elsewhere.

If gas prices go up, people will want to spend less and less on gas. Demand for eco-friendly cars and other eco-friendly energy solutions will rise, asssuming that the rise in demand doesn't make these products more expensive than paying for gas. Companies, motivated by profit (not - as much as we would love it to be true - motivated by good stewardship or good will), will produce products that bring them the most profit. In this case, eco-friendly vehicles (hybrids, electric cars, etc). Thus, the environment is saved.

So I say - BRING ON THE HIGH GAS PRICES.

But I can say that because I live in Bahrain. I pay less than a dollar a gallon - government subsidized gas.

My car gets 13 miles to the gallon and I don't even bat an eye.

1 comment:

Beloved Meadow said...

Odd. I just told my brother something very similar today as I was driving him around on my gas-dollar. Sigh. The price of little brothers. But, just sayin' - I knew you and your wife and I were friends for a reason!
Bring on happier means of transport!

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