Let's fuel the economy

Okay, so I hate paying a lot for gas when I fill up...but what I hate more is the government keeping the price of gas low! While this doesn't seem to make sense at first, let's think about it. If the price of gas was $4 or $5 per gallon, innovators would be working pretty dang hard at coming up with new, more efficient methods of transportation. I would be willing to pay a little more for gas for a year if it meant having cars come out that got 70 miles per gallon...of water. Or a car that runs on hydrogen and has no emmissions. Or a car that runs in a way that I haven't even thought of. Has anyone in the government actually taken economics? Is everyone so short sited that they would rather pay less for gas until it runs out? Wouldn't it be nice if we could use oil for other things? Then we wouldn't be as reliant on other countries. Maybe I'm not thinking this through. It just seems so simple to me. Unfortunately, money talks...especially to those who make the final decisions.