Many people believe high energy prices is bad for the economy and maybe justifiably so in the short term. As the short term impact will increase consumer’s heating bills and car fuel expenses thus force the consumers to spend less on everything else and in turn hurt corporate profits as the consumers are the driving force of this economy.

But I believe long term high oil prices is good for the economy and society. If the oil can stay at around $55 to $65, we can actually see the economy adapt to the increase as oil, coal, and natural gas exploration accelerate and spurt other energy alternative like solar, fuel cell, and wind technologies to improve. As a result, the demand for oil would be less and may eventually eliminate the need for oil in our most polluting machine, automobiles. The environment would be better and people would be healthier.

This entry was posted on Sunday, October 30th, 2005 at 8:59 am and is filed under Editorial. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.