Home
/
RELIGION & LIBERTY ONLINE
/
High gas prices are good
High gas prices are good
Apr 26, 2025 12:48 AM

You may have seen an op-ed in the NYT last week by Tom Friedman, who noted that when oil and gas prices go up, bad things happen in oil producing nations abroad. The tendency is for the oppressive regimes in oil producing nations to consolidate their power and be less responsive to the demands of their citizens when they have the added buffer of huge profits from the sale of oil.

And domestically many have made the claim that rising oil and gas prices are a bad thing. Many people’s pocketbooks have been hit hard, when they stop to fill up at the pump and over the course of the long winter. So many people are against high gas prices that politicians at almost every level have felt the need to respond and make some sort of gesture, token or substantive, to address the issue.

There’s no doubt that the poor, as in most cases, are disproportionately affected by high energy prices. People on fixed es often have trouble paying their utility bills when prices spike. Others who mute to their jobs have trouble filling up the gas tank. Attention needs to be fixed on the people in these sorts of situations, and help should be there when they need it. It must be noted, too, that increased taxes have the same drawback as increased prices from market-pressures: they are regressive.

But for the vast majority of Americans, if addressed honestly, the rising cost of oil is more of an inconvenience than anything else. If people can afford to buy expensive new SUVs and large trucks, they can afford the pinch on their disposable e that higher gas prices mean.

Even so, the inconvenience does have the ability to change people’s behavior, and this is why I’m making the argument that high gas prices have the potential to be a good, albeit a costly one (so to speak). People might drive less, carpool more, walk to the corner store instead of driving, and so on.

But an even bigger point is this: as gas prices rise the cost relative to other forms of energy is bound to decrease. This is why so many environmental advocates have long been arguing in favor of some sort of hefty additional petroleum products tax, which would make other sources of energy petitive.

But what so many fail to see is that the market can plish by itself what such artificial and authoritarian measures are intended to do. Clearly the price we pay at the gas pump includes a huge amount by way of taxes to the various levels of government. But when gas prices rise without an increase in the amount of government taxation, the market itself is making other cleaner and renewable sources of energy petitive.

As the Cornwall Declaration observes, “A clean environment is a costly good.” This has never been more true than in the case of rising gas prices. The wealth created by market economies allows the creation of new, better, and more efficient technologies. And the market itself gives strong economic incentive to the pursuit of such endeavors, especially when oil prices are on the rise.

It’s high time that environmentalists stopped being so wishy-washy about the market. As Paul Jacobs points out, they like the market when the prices are high but hate it when they are low. On this inconsistency, Jacobs is right. But where he’s wrong, I think, is that arguing for the positive effects of the market in this case automatically means that you must otherwise be for increased taxation to plish the same goals.

Related Items:

“Bodies for Barrels,” The McLaughlin Group, May 5, 2006 (archived text of issue available here; search for ” Issue Two: Bodies for Barrels.”) Key quote from Tony Blankley: “I’m in favor of free markets. The people will go to smaller cars if they want them. And trying to force people to buy cars they don’t want is foolish. And anybody who wants to protect their family, particularly if you have children, you want them in a lot of steel around them. And that to me is the better call to protect your children – driving around in Suburbans and large vehicles.”

Tom Daschle and Vinod Khosla, “Miles Per Cob,” The New York Times, May 8, 2006. Another installment of the “governments create markets” fallacy.

Jordan J. Ballor, “Humanity’s creativity helps environment,” Detroit News, April 22, 2006.

Jordan J. Ballor, “Cashing in on Carbon Credits,” Acton Commentary, April 19, 2006.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Constitutional Cases and the Four Cardinal Virtues
Should virtue be a consideration in judicial decisionmaking? Indiana Law Professor R. George Wright makes an intriguing argument for why the four cardinal virtues could be useful in interpreting constitutional cases: Judges typically decide constitutional cases by referring to one or more legal precedents, rules, tests, principles, doctrines, or policies. This Article mends supplementing this standard approach with fully legitimate and appropriate attention to what many cultures have long recognized as the four basic cardinal virtues of practical wisdom or...
Reagan, Whittaker Chambers, and the Threat to Freedom
Over at the Liberty Law Blog, there is an excellent post titled “Ronald Reagan, Whittaker Chambers, and the Dialogue of Liberty” by Alan Snyder. Snyder delves into the influence Chambers had on Reagan and how their worldviews differed as well. Many conservatives and scholars felt Chambers’ prediction that the West was on the losing side of history in the battle against Marxism collapsed after the fall of the Iron Curtain and the Soviet Union. For many, the ideas of Chambers...
Italy’s Tax Man Takes Aim at the Vatican
Kishore Jayabalan, the Acton Institute’s Rome office director, was interviewed by the Zenit news agency in an article titled, “Is Taxing the Church a Real Solution for Italy?” In the article, Jayabalan discusses the history of the Italian state and its imposition of property taxes on the Roman Catholic Church’s land holdings, residences and non-profit businesses. Sometimes in the past, particularly under Napoleonic rule and before the Lateran Pacts, the institution of property tax was often a subject of state...
Let’s Change Hearts and Minds (and Laws, Too)
Few clichés are so widespread within the evangelical subculture, says Matthew Lee Anderson, as the notion that our witness must be one of “changing hearts and minds.” In careful hands, the idea is at best ambiguous. At worst it reinforces the sort of interior-oriented individualism that allows for and perpetuates a blissful naivete about how institutions and structures shape our dispositions and thoughts. In less than careful hands, the phrase drives a wedge between law and culture by attempting to...
Is Work a Curse?
Is work a curse, a result of mankind’s fall from grace? Not according to the Book of Genesis. As Hugh Whelchel, Executive Director of the Institute for Faith, Work & Economics, explains, what Adam was called to do in the garden is what we are still called to do in our work today: Humanity was created by God to cultivate and keep God’s creation, which included developing it and protecting it. You see, we were created to be stewards of...
How to Love Liberty More Than a Libertarian Economist
I have a deep and abiding love for liberty—which is why I find myself so often in disagreement with libertarians. Libertarians love liberty too, of course, but they tend to love liberty a bit differently. I love liberty in an earthy, elemental way. I love liberty because I need it—like I need air and food—for human flourishing. In contrast, the libertarians I’ve encountered tend to love liberty primarily as an abstraction. Indeed, the most ideologically consistent libertarians I know seem...
Lord Acton and the Power of the Historian
Looking through my back stacks of periodicals the other day I ran across a review in Books & Culture by David Bebbington, “Macaulay in the Dock,” of a recent biography of Thomas Babington Macaulay. The essay takes its point of departure in Lord Acton’s characterization of Macaulay as “one of the greatest of all writers and masters, although I think him utterly base, contemptible and odious.” As Bebbington writes, “Acton, a towering intellectual of the later 19th century, was at...
Integral Human Development
The Journal of Markets & Morality is planning a theme issue for the Spring of 2013: “Integral Human Development,” i.e. the synthesis of human freedom and responsibility necessary for the material and spiritual enrichment of human life. According to Pope Benedict XVI, Integral human development presupposes the responsible freedom of the individual and of peoples: no structure can guarantee this development over and above human responsibility. (Caritas in Veritate 17) There is a delicate balance between the material and the...
How to Steal a Bike in New York City
Edmund Burke didn’t really say it, but it still rings true: All that is necessary for the triumph of evil is that good men do nothing. In a test of this maxim, filmmaker Casey Neistat tries to steal his own bike in several locations around New York City and finds that most people do nothing about it—even when it’s done right in front of a police station. I recently spent a couple of days conducting a bike theft experiment, which...
Obamacare’s Religious Rubes
The White House has a plan to mobilize prayer vigils in front of the Supreme Court in defense of Obamacare. It was reported that the administration met with leaders at non-profit organizations and religious officials who support the new health care law. The court takes up the constitutional test of the health care mandate in a couple of weeks. The mandate has now been challenged in 26 states. Cue the same stale big government religious prophets who confuse statism and...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved