Is $3 Per Gallon For Gas A Good Thing?

Just yesterday we were paying $3.50 a gallon at the pump and were ready to pay $4 or $5 if necessary. No blessing has ever come more disguised.

2 minute read

November 25, 2005, 9:00 AM PST

By Chris Steins @planetizen


Washington Post columnist Charles Krauthammer proposes the unthinkable -- government-induced high gas prices:

"Put a floor at $3. Every penny that the price goes under $3 should be recaptured in a federal gas tax so that Americans pay $3 at the pump no matter how low the world price goes. Why is this a good idea? It is the simplest way to induce conservation. People will alter their buying habits."

Contributor Dan Zack evaluates the argument:

Gas taxes should be used to keep the price of gasoline AT LEAST $3 per gallon. Why is this a good idea? It is the simplest way to induce conservation. People will alter their buying habits. It was the higher fuel prices of the 1970s and early '80s that led to more energy-efficient cars and appliances -- which induced such restraint on demand that the world price of oil ultimately fell through the floor. By 1986 oil was $11 a barrel. Then we got profligate and resumed our old habits, and oil is now around $60. Surprise.

The worst part is that much of this $60 goes overseas to foreigners who wish us no good: Wahhabi Saudi princes who subsidize terrorists; Hugo Chavez, the mini-Mussolini of the Southern Hemisphere; and (through the fungibility of oil) the nuclear-hungry, death-to-America Iranian mullahs.

It makes infinitely more sense to reduce consumption, drive the world price down and let the premium we force ourselves to pay at the pump (which begins the conservation cycle) go to the U.S. Treasury. If the price drops to $2, plow that $1 tax right back into the American economy by immediately reducing Social Security or income taxes.

Thanks to Dan Zack

Friday, November 11, 2005 in The Washington Post

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

June 18, 2025 - Diana Ionescu

Rendering of Shirley Chisholm Village four-story housing development with person biking in front.

San Francisco's School District Spent $105M To Build Affordable Housing for Teachers — And That's Just the Beginning

SFUSD joins a growing list of school districts using their land holdings to address housing affordability challenges faced by their own employees.

June 8, 2025 - Fast Company

Woman and young girl looking at subway map, woman pointing.

Can We Please Give Communities the Design They Deserve?

Often an afterthought, graphic design impacts everything from how we navigate a city to how we feel about it. One designer argues: the people deserve better.

June 9, 2025 - John Pobojewski

Map of EV charging ports in rural U.S. communities.

The EV “Charging Divide” Plaguing Rural America

With “the deck stacked” against rural areas, will the great electric American road trip ever be a reality?

4 hours ago - The Daily Yonder

Google street view of Bedford Avenue in Brooklyn with pedestrians crossing a crosswalk and cyclist in the bike lane.

Judge Halts Brooklyn Bike Lane Removal

Lawyers must prove the city was not acting “arbitrarily, capriciously, and illegally” in ordering the hasty removal.

5 hours ago - StreetsBlog NYC

Close-up of cracked and damaged two-lane roadway with double yellow stripes on a bright sunny day.

Engineers Gave America's Roads an Almost Failing Grade — Why Aren't We Fixing Them?

With over a trillion dollars spent on roads that are still falling apart, advocates propose a new “fix it first” framework.

June 19 - Transportation for America