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I'm watching cnn and some pc/enviro/liberal/douche is gassing on about how if the government would set the price of gas to 5.00 it solve all our energy problems.
Don't these 5.00 guys realize that EVERYTHING not just gas would be significantly more money??
Even simple things like food and utilities would drastically increase.
Theory behind high prices is that it will force people to conserve, thus lessening the energy consumption. Those that can afford it, won't conserve, thus adding money to the energy economy.
It could work, but you are right, it would drive up all goods until people did start conserving, and prices came back down.