Will high gas prices help reduce Americas dependency on foreign oil?

Question

Dont mind paying high gas prices if they forced Americans to buy cars that get better MPG's etc.

Answer 1

No... The reality is that we need that form of transport to survive.  MOST people couldn't get to work if they didn't have a car.  If you can't work you can't buy food.  How can you even harvest and sell food if you don't have fuel for your trucks and tractors?

It is a dire situation, but stop pointing the finger only at us!  China and India have a rising middle class.  As consumer they are widening the market as well.  You know the whole thing on supply and demand?  That is what is happening in Asia.  

Not everyone could just buy a new car here in the US.  As you may have heard inflation is becoming a big deal as the dollar is losing ground to the Euro.  There is also the Sub-Prime lending mortgage crisis which is leaving many people homeless.

Another thing is that Americans have big families, they wouldn't all fit into a Renault Clio, etc.

The reality is that it is much more complicated than that, I probably don't even know what I'm talking about.  ALSO whether we like it or not, there is a war going on in the Middle East

Answer 2

If the long run demand for gas is sufficiently elastic (which it tends to be), then yes.  Auto companies are already having a difficult time selling their SUVs and pickup trucks.  Also, high gas prices increase the willingness of people to pay for an alternative to gasoline, so it increases the potential profit if someone were to develop an alternative fuel.  This stimulates research.

Answer 3

We import over half the oil we use so even thought high gas price will reduce our consumption, we will still be depended on imports unless we cut our consumption by half, which is unlikely. Unfortunately the people with low incomes are the ones who are hurt most by the high gas prices (some are paying  16% or more of their incomes) are the ones least likely to be able to buy a new car with better MPG.

Answer 4

Not just no, but h**l no.