Still on Hiatus
The purpose of prices is to cause people to distribute resources efficiently. High gas prices tell us we need to invest in alternative energy. That part's simple. Ok, but any government sponsored research skews the economic efficiency thing too far in favor of hybrid research. Yeah, 3$ a gallon pisses me off, but not enough to buy a hybrid. The extra technology costs 8000 bucks, and saves 15% over an identical small car, so I'd have to drive 56000 miles to make up the difference, assuming gas stays at 3.00. Which it won't.
But it helps the environment! well, not really, because the reason it costs 8000 bucks to make a hybrid is that it's harder to make than a standard car. The extra work means people driving around, more workers, more energy, more machines, all of which pollute.
When we run out of oil, everyone will start driving hydrogen cars instead of ICEs that pollute and turn our lungs black. So that's why George Bush doesn't care about black lungs.
Also, cheap gas makes us more dependent on middle eastern oil, because when gas prices fall, Canada and the US cut production, but OPEC doesn't.