Why cheap gasoline is bad for America

The other day, I heard an elderly couple interviewed on the radio about our current astonishing drop in gas prices. They gave a variation on “we’re on a fixed income, so every little bit of savings counts.” Like many Americans, they don’t have a lot of transit options. An article in The Economist this week said that the price reduction could save the average family $800 a year, or more. That’s no small amount when margins are tight.

Not everyone is broke, though. Low gas prices are putting us in the mood for new cars, sales of which are at their highest point in 11 years. Under these circumstances, we make odd choices, like besotted fools buying more diamond than we can afford. Sound the bells, because Americans are going to start purchasing guzzlers. This is what always happens when gas prices go down. At last, our long national nightmare of driving slightly smaller vehicles with slightly better fuel economy can end; the average efficiency of all new vehicles sold fell last month for the first time in four years. Once again, we can spend freely on our one true love: Gasoline.

We are insane.

Saying “gas is now cheap, so I’m going to buy a bigger car” is like saying “the price of bread went down, so I’m going to get a bigger toaster oven.” The attitude should be, well, gas is cheap, so I’m going to get a more fuel-efficient car and save even more money. But this is an all-you-can-eat gas buffet being offered. We don’t say no to a buffet in this country.