Should We Worry about Rising Oil Prices?

With people worrying about the rise in the price of oil. (see: people praying outside gas stations in America [link] - presumably world peace has been achieved if people have time to spend praying for cheap gas) Dealing with high oil prices

Reasons to Worry About Rising Oil Prices

1. Causes inflation. Rising oil prices cause increased costs for business leading to inflation
2. Reduces living standards. higher oil prices mean lower disposable income for families. This will lead to lower spending in other sectors of the economy.
3. The combination or rising costs and falling spending means that there is the risk of recession.
4. Things could continue to get worse in the future.
5. Increased political power of oil exporters such as Saudi Arabia and Iran

Reasons not To Worry about Rising Oil prices

1. High prices create an incentive for people to look for alternatives
2. Higher oil prices will reduce carbon emissions and improve the environment
3. Higher prices will encourage more efficient engines and more efficient driving.
4. Price rises are only temporary and may fall soon.