Motion for a Recess

In an attempt to prevent the extinction of the king salmon, the Commerce Department has implemented a fishing ban on the West Coast. Salmon prices are going to jump soon, if they already haven’t - you better hoard it while you can. Thank god I gave up meat and seafood recently. Poor fishermen.

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.

Eight dollars. That’s about the average price of a gallon of gas in Europe. More than double our current prices. I’ve heard this before and now it feels pertinent to talk about when comparing to our current situation. But it seems like Europeans, for the most part, are fine with what they pay (unlike most Americans). It doesn’t cost more to produce gas in Europe than in the US. The reason for the markup is a result of government levied taxes, funding various initiatives such as health care and public transportation. Studies show that taxation has been the primary cause for reduced oil consumption. While US consumption has grown about 21% in the last decade, our European counterparts have seen stagnant or reduced consumption.

As much as I don’t like government intervention with certain policies, I feel this is a pressing matter that needs to be addressed. There are two options to choose from: we can either start passing legislation that increases fuel economy or we can increase the taxes that we pay on gas. Either way, some action is needed to curb our growing hunger for oil so we can fund public transportation projects or invest in alternative energies.

Graphical Representation of Worldwide Fuel Economy

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.
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Hulu is great. I just watched Me, Myself & Irene on it for free with only 12-second commercials (about 5) interspersed throughout the movie. One thing though that caught my attention in the movie was a particular scene. See if you can see what I can see…
Yup. A gallon of unleaded gas was $1.13 in the movie which was filmed back in 2000. The national average is now $3.60 (in the Bay Area it’s at $3.90 or so). That’s more than a tripling in price in less than 8 years! What I wouldn’t do for those prices once again.