Motion for a Recess

Learn to Love High Gas Prices

In a previous post, I advocated increasing taxes on gasoline to wean our country off oil and start spurring up interest in public transportation or alternative sources of energy. At the time, Hillary Clinton and John McCain were pushing for their own (failed) gas tax holiday plan. Most economists and policy wonks (as well as any person who possesses logic) thought it was a joke. Nonetheless, it seemed that calling for a higher gas tax would incense Americans who are already struggling with higher food costs. But as gas prices are on the rise, more and more people are recognizing the need for higher gas prices.
Continue reading…

The Rich Feel the Pinch

We all know our current economic situation is a major concern as the housing market still looks very bleak and will probably continue to stay that way for a little longer. But while the average American feels that way, how do the wealthy feel about their wealth? According to “The Fidelity Millionaire Outlook” survey sent out to those with at least $1 million in assets, they too have begun to feel the squeeze. It’s an interesting effect to see that the ones with a lot of money feel they aren’t as rich (or shielded) in this type of market, especially the wealthier ones.

People with more than $10 million to invest other than their home and retirement savings have a more pessimistic view than those with less than $2.5 million.

It also shows how these so-called wealthy individuals have managed to spend more money than they are able to actually pay for, a problem most prevalent with the average American. And with the rising costs of food, health insurance, mortgages, education, and other necessities, there will undoubtedly be a greater burden on every American rich or not. The annual savings rate is already at historic lows meaning we have no other place to bail ourselves out from this hole.

The Gas Tax Repeal

The federal excise tax on gasoline has been the cause for major buzz in all the presidential campaigns recently. John McCain and Hillary Clinton are proposing a temporary lift on the tax (an 18.4 cent one, mind you) for the summer so that a partial burden is lifted off the American people’s shoulders. Seriously? Barack Obama, who seems like the only candidate to understand the difference between political expediency and forward-thinking policies, has spoken against this repeal saying it does nothing to curtail consumption. And most economists agree.
Continue reading…