The US is in deep trouble if it can't withstand $5/gal gas.
The rise of US power is closely tied to our natural wealth of oil. The UK based its global power on steam and coal, the US superseded the UK to global dominance on its oil wealth.
-The US was the first and is the largest oil power in history.
-In total oil extracted combined with known reserves, the US contained more oil than any other nation.
-We are still the third largest oil producing country in the world.
-We consume about 50% of the world oil with only 5% of its population.
-The US hit peak oil in the early 70's, prompting the oil crisis and dependance on foreign oil. We no longer were finding new reserves of oil faster than we extracted them.
As the first country to hit peak oil, the US should have initiated policies to reduce our oil dependance, but as we see today we are still addicted.
Our private and government development since the 70's has largely ignored the impact higher gas prices.
The hypocrisy in the oil price arguments are astounding.
-People believe they have a right to cheap oil, a limited resource.
-It is considered impossible for the US to implement a 50mpg standard even though this is common everywhere else.
-Our country has dismantled large privately operated mass transit systems in cities and towns that existed before 1950, while subsidizing free roads, parking and suburban sprawl.
-We fight fuel saving alternatives such as High Speed Rail and mass transit.
-The highway trust fund is going bankrupt. It is unable to keep up with the demands sprawling development puts on new capitol construction, and has never covered maintenance.
-The cheap fuel and car economy has encouraged suburban and rural growth that would not be possible without cheap fuel. Real estate values in these areas will plummet as fuel prices increase.
-User costs such as parking meters, odometer taxes and vehicle licence fees are fought as excessive taxes while governments at all levels need to divert general funds to build and maintain a car infrastructure.
-Federal gas taxes are fixed per gallon and not as a percentage of cost and are lower than most sales taxes. At 18 cents per gallon the fuel tax is 4.5%, lower than sales tax in many places.
-More efficient Diesel fuel is taxed higher at 24 cents.
Of all the speculation about oil, one thing is certain.
The price will continue to go up.
If we don't choose where and how to live without considering this fact, we will suffer the results.
Our government has gone out of its way to subsidize our car lifestyle with the largest public works projects in US history. Its time to ween americans off these subsidies and allow them to bear the full cost of car use and ownership.
The markets will quickly correct the lack of mass transit and sprawling development that has occurred as a result of these subsidies.