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 25, 2025 - Diana Ionescu

Map of Western U.S. indicating public lands that would be for sale under a Senate plan in yellow and green.

Map: Where Senate Republicans Want to Sell Your Public Lands

For public land advocates, the Senate Republicans’ proposal to sell millions of acres of public land in the West is “the biggest fight of their careers.”

June 19, 2025 - Outdoor Life

Person wearing mask walking through temporary outdoor dining setup lined with bistro lights at dusk in New York City.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?

Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

June 19, 2025 - Diana Ionescu

Close-up of full beer glass with purple train-themed design sitting on bar between two frosty tall cans.

Platform Pilsner: Vancouver Transit Agency Releases... a Beer?

TransLink will receive a portion of every sale of the four-pack.

4 hours ago - Cities Today

Vintage red Toronto streetcar passing in front of Rogers Arena in Toronto, Canada.

Toronto Weighs Cheaper Transit, Parking Hikes for Major Events

Special event rates would take effect during large festivals, sports games and concerts to ‘discourage driving, manage congestion and free up space for transit.”

5 hours ago - blogTO

Map of Berlin with ring roads in green and red.

Berlin to Consider Car-Free Zone Larger Than Manhattan

The area bound by the 22-mile Ringbahn would still allow 12 uses of a private automobile per year per person, and several other exemptions.

6 hours ago - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.