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The simple truth of the matter is that while we complain about high prices, we're probably not paying enough.In England, it costs 90p to fill a liter of gasoline. That's 3 pounds 60 for a gallon (roughly). In American currency, that's approximately $7.20 a gallon. Oil and gas have a very high social cost, and if the market creates a low price, the government ought to step in and tax it more.

This might sound odd coming from a libertarian/Republican. I'm not someone who believes global warming is a clever myth created by hippies to save more whales. Even if you don't buy that, air pollution from cars is still a huge problem (ask people in LA). Medical problems skyrocket (Asthma rates increase dramatically for example) which increases the medical cost which government inevitably pays one way or another. If you find yourself hating traffic, then you can inevitiably see how higher gas prices slowly force people off the road (I also think we need congestion charges in Manhattan). Although I despise most taxes, I think Pigovian taxes used for goods which have a very high social cost are perfectly reasonable.

Also, the rapid 2nd wave of suburbanization from the 80's-90's was fueled by low gas costs, stretching urban metropolitan areas further and further. I feel no sympathy whatsoever for people with hour plus long commutes who are complaining now. There was inherent risk living that much farther out, and suburbanites reaped the benefits buying low and having their housing prices go through the roof. Hitting the oil companies up for cash now seems a little disingenuous. It's not their job to mitigate risk on the part of consumers.

A "windfall" is nothing other than a good year for the oil company. Taxing them for doing their job is rediculous. It's consumers who are at fault. Consumers who insist on low oil and gas and then propose no solution to try and combat it's harmful effects. Our country has become the proverbial heroin addict with the needle in his arm. We blame the heroin rather than ourselves for putting the needle in in the first place.

Learn more about this author, Christopher Daubert.
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