I'm literally sick to my stomach over the Senate passing the so-called Compromise Budget Bill. Those who voted for this bill have no spine, no conscience, and have sold us down the river. This is just the beginning of the end, as it gives so much momentum to the Republicans. President Obama is sadly mistaken in thinking it won't be business as usual for the Party of No going forward. God help our country. See below for some background.
From an email from Senator Bernie Sanders: "At a time when we have a $13.7 trillion national debt and the most unfair distribution of income in the industrialized world, why are we giving huge tax breaks to millionaires and billionaires? Is there no end to their greed? And does anyone really believe that this will only be a two-year agreement with no future extensions?
Why should we be significantly lowering rates on the estate tax when it applies only to the very, very richest people in this country, the top 0.3 percent? The richest 1 percent already owns more wealth than the bottom 90 percent. Isn't that enough?
With the American people deeply worried about the future of Social Security, why are we diverting $112 billion from the Social Security trust fund in order to provide a 'payroll tax holiday?' Why is a Democratic president adopting this position, which has long been held by Republicans who want to eventually destroy Social Security by choking off its funds? With the Republicans coming to power in the House in a few weeks, why should anyone not think that this 'one-year' diversion will be made long-term or permanent? According to one major senior citizen organization, this action could be the beginning of the end for Social Security – the most successful anti-poverty program in the history of the United States."
Here is a list of Senators who voted against the giveaway, and for whom we should all be proud:
NAYs ---19
Bingaman (D-NM) Coburn (R-OK) DeMint (R-SC)
Dorgan (D-ND) Ensign (R-NV) Feingold (D-WI)
Gillibrand (D-NY) Hagan (D-NC) Harkin (D-IA)
Lautenberg (D-NJ) Leahy (D-VT) Levin (D-MI)
Merkley (D-OR) Sanders (I-VT) Sessions (R-AL)
Udall (D-CO) Udall (D-NM) Voinovich (R-OH)
Wyden (D-OR)
Here's a commentary on those Senators who really couldn't give a crap about the middle class, and who should be ashamed:
Senators who want to start balancing the budget, but only if the wealthy are protected, would vote for the compromise and for the Coburn amendment, but against the Sanders amendment. 41 senators voted that way, 37 Republicans and 4 Democrats: (Alexander (R-TN) Lugar (R-IN) Barrasso (R-WY) McCain (R-AZ) Bayh (D-IN) Enzi (R-WY) McCaskill (D-MO) Bennett (R-UT) Graham (R-SC) McConnell (R-KY) Bond (R-MO) Grassley (R-IA) Murkowski (R-AK) Brown (R-MA) Gregg (R-NH) Risch (R-ID) Brownback (R-KS) Roberts (R-KS) Bunning (R-KY) Hatch (R-UT) Burr (R-NC) Hutchison (R-TX) Shelby (R-AL) Chambliss (R-GA) Inhofe (R-OK) Snowe (R-ME) Isakson (R-GA) Tester (D-MT) Cochran (R-MS) Johanns (R-NE) Thune (R-SD) Collins (R-ME) Kirk (R-IL) Vitter (R-LA) Corker (R-TN) Kyl (R-AZ) Cornyn (R-TX) LeMieux (R-FL) Wicker (R-MS) Crapo (R-ID) Lincoln (D-AR))
By the way, California Senators Feinstein and Boxer both voted for the compromise. I suppose their reason is to support their President. Too bad we don't have people like Senator Bernie Sanders in our state.
Thursday, December 16, 2010
Sunday, December 12, 2010
No Free Lunch: San Diego City's taxes are far lower than those in other major California cities
Today's U-T has an excellent article on taxes in San Diego, comparing them to other major cities in California. What's really interesting to me is that California is often called unfriendly to business, and yet San Diego's taxes are very low, including business taxes. It would follow that we would have more major businesses in San Diego. And yet, San Diego is far, far behind when it comes to business headquarters. One example is the very low grant dollars per capita vs. other cities in California.
Synopsis
Business tax: we leave $100 million on the table.
Commercial Parking Fee: we leave $31 million on the table.
Utility Users tax: we leave $100 million on the table.
Trash Collection: we should be collecting about $50 million per year, just like every other major city does.
This adds up to $281 million dollars we should be collecting in taxes, every year! You get what you pay for, and we, looking at our streets, limited access to libraries, deferred sewer and water maintenance, are cutting ourselves short.
Taxes: How San Diego measures up
City's taxes are far lower than those in other major California cities
By Craig Gustafson, Sunday, December 12, 2010 at 6 a.m.
Having an anti-tax attitude is about as San Diego as fish tacos, surfing and 70-degree weather.
City residents have long been averse to tax increases — most recently displayed by the resounding rejection of a proposed sales tax hike last month — and have strongly opposed any move by the city to increase fees.
This has put San Diego below some other major cities in California in terms of how much revenue it collects each year so it can provide basic services, such as public safety, parks and libraries. One recent estimate showed the city generates $81 less per resident by comparison, a difference that equates to $100 million fewer dollars going into city coffers annually.
San Diego vs. other cities
Average business tax by city
Annual revenue from commercial parking taxes
Utility users tax
Revenue generated annually per capita on fees of 1 percent to 10 percent on utility bills, such as electricity, gas, phone, water, cable and trash.
Los Angeles: $150.64
Impact: If San Diego were to implement fees totaling $74 annually — the average of peer cities in California — the city would generate an additional $100 million per year.
*A public vote would be required to change any of the above San Diego taxes.
OTHER FEES
Trash collection: The city spends $34 million annually to pick up trash and another $15 million to handle recyclables. If the city were to charge to recover its costs, the average household would pay $15.16 each month. The city is prohibited by The People’s Ordinance, which voters approved in 1919, from charging for trash pickup for most residents. A public vote would be required to overturn the ordinance before the city could assess a fee.
Beach parking: San Diego doesn’t charge for parking at the 63 city-owned lots near its beaches as many other cities do. The nearly 9,000 spaces could provide significant revenue depending on how much the city charges. The City Council has authority over public parking fees.
Source: City of San Diego Citizens Revenue Review and Economic Competitiveness Commission
GENERAL REVENUE PER CAPITA
Source: Center on Policy Initiatives
“San Diego is the city of the free lunch,” said Nelson, who is also chairman of the San Diego Convention Center Corp. “You just can’t sustain core municipal services without robust revenue sources. ... I like it when people say government should be run more like a business. I agree. San Diego isn’t doing it and it hasn’t done it for decades.”
Councilman Carl DeMaio said any talk of increased taxes or fees is a nonstarter.
DeMaio has proposed a comprehensive plan to solve the city’s financial problems by adopting sweeping changes in how the city operates. The plan would cut pay for most non-public safety workers, freeze salaries for all city employees, eliminate taxpayer-funded retiree health care for current workers, and categorize certain pay as bonuses that should not be counted toward pensions.
His plan includes no fee or tax increases.
San Diego's anti-tax reputation is well-deserved.
The city rejected three tax increases from 1995 to 2008 while the state’s other top 10 cities approved tax hikes at a rate of nearly 60 percent during the same period, according to Steve Erie, a political-science professor at the University of California San Diego who is cowriting a book on the city’s financial woes.
Erie said the city’s anti-tax culture took hold in the late 1970s and grew into a nearly unstoppable force by the 1990s with intensity not found in other parts of the state.
“We behave very differently,” he said. “San Diego really wants the services but doesn’t want to pay for them.”
Critics say the public doesn’t trust the city because of its financial mismanagement and Erie said residents “believe that there’s fraud, waste and corruption.”
One of the arguments against raising business taxes is that it could push companies to leave San Diego. The commission said there are several other factors — state corporate taxes, the existence of a capable work force and the cost of housing and land — that are far more important to businesses when deciding where to locate.
Lani Lutar, head of the San Diego County Taxpayers Association, said the city shouldn’t increase its taxes just because everyone else has higher taxes.
“That’s what other cities did when they compared pension benefits,” she said. “They would say ‘Well a neighboring city is offering this so we need to.’ So pretty soon you’ve got this chain reaction that leads to a lot of cities doing things that aren’t necessarily in the best interest of taxpayers.”
The low taxes in San Diego have a dramatic impact on how the city is run. The operating budget of $1.1 billion funds a broad range of services, from police and fire protection to parks and libraries. That pool of money is reduced when $34 million is needed for trash collection and $32 million is required to subsidize stormwater expenses because fees are either nonexistent or cover only a fraction of costs.
craig.gustafson@uniontrib.com (619) 293-1399 Twitter @gustafsoncraig
Synopsis
Business tax: we leave $100 million on the table.
Commercial Parking Fee: we leave $31 million on the table.
Utility Users tax: we leave $100 million on the table.
Trash Collection: we should be collecting about $50 million per year, just like every other major city does.
This adds up to $281 million dollars we should be collecting in taxes, every year! You get what you pay for, and we, looking at our streets, limited access to libraries, deferred sewer and water maintenance, are cutting ourselves short.
Taxes: How San Diego measures up
City residents have long been averse to tax increases — most recently displayed by the resounding rejection of a proposed sales tax hike last month — and have strongly opposed any move by the city to increase fees.
This has put San Diego below some other major cities in California in terms of how much revenue it collects each year so it can provide basic services, such as public safety, parks and libraries. One recent estimate showed the city generates $81 less per resident by comparison, a difference that equates to $100 million fewer dollars going into city coffers annually.
San Diego vs. other cities
- San Francisco: $5,253
- Los Angeles: $1,281
- Oakland: $774
- San Jose: $225
- San Diego: $79
Impact: Most cities levy business taxes as a percentage of gross receipts or a fix charge per employee. San Diego levies a flat annual tax depending on the size of business: $34 for businesses with 12 or fewer employees; $125 for businesses with 13 or more employees, plus $5 for each employee. If San Diego were to increase its business taxes to the statewide average of $610, the city would generate an additional $94 million annually.
- Los Angeles: $85.4 million
- San Francisco: $64.5 million
- Oakland: $14.2 million
- San Diego: Zero
Impact: If San Diego were to enact a 10 percent tax — the low end for other cities — on parking fees collected at commercial parking lots and structures, the city would generate an additional $31 million annually.
Hotel taxes, percentage by city
- Anaheim: 15 percent
- Los Angeles: 14 percent
- San Francisco: 14 percent
- San Diego: 10.5 percent
Impact: For every 1 percent increase in the hotel tax, San Diego could generate an additional $12.6 million annually.
Oakland: $123.77
Sacramento: $119.01
San Francisco: $97.34
San Diego: Zero
Storm water: The city spends nearly $38 million annually to treat urban runoff but only collects $6.5 million in storm drain fees from residents and businesses. The city ranks 117th out of 122 California cities in the amount it collects. Single-family residences pay a flat fee of 95 cents per month while multi-family residences and businesses pay based on water usage. The city would need to charge nearly six times as much to recoup its costs but can’t without voter approval.
Oakland: $875
Sacramento: $851
Los Angeles: $809
San Jose: $724
San Diego: $676
Anaheim: $667
Long Beach: $617
......There’s renewed focus on San Diego’s tax rates because of a $73 million budget deficit and a looming $2.1 billion pension gap that threatens to overwhelm city finances in coming years. Mayor Jerry Sanders and the City Council are contemplating more cuts by July 1 after voters rejected Proposition D, the sales tax hike.
“It’s woefully out of step with political realities and what the shareholders of the city of San Diego — you know, the people who actually own our city government — have told us they want us to focus on,” he said. “They don’t want to raise revenues. They’re barely making ends meet right now. And so I would just encourage my colleagues, take all the revenue and tax ideas and put them off to the side.”
San Diego doesn’t charge a tax on parking structure owners like Ace Parking for what they collect. Most other large cities charge between 10 percent and 25 percent. Los Angeles generates $85 million annually from commercial parking taxes while San Diego raises nothing.
craig.gustafson@uniontrib.com (619) 293-1399 Twitter @gustafsoncraig
Monday, December 6, 2010
Great News from Uncle Sam: Yogurt in, Soda Out for Army Recruits
This is one of those stories you have to read twice, makes you say 'Wow,' the US Government actually doing something right. This is the type of action that doubles in results, because the US Government is such a big purchaser of everything. When they make a radical, positive change like this, it has ripple affects throughout the entire country:
FORT LEONARD WOOD, Mo., December 1 ---- At Army training sites across the nation, the mess hall is beginning to look different: Milk and juice dispensers are replacing soda fountains. Whole grains are being substituted for white bread and pasta.
The military increasingly believes that producing quality recruits starts at the dinner table during basic training, so it has started a new, more emphatic effort to change their eating habits. Now, color-coded labels point the way to healthy items, and drill sergeants stand watch over the chow line, calling out soldiers who don't put enough fruit on their plates.
Many new soldiers have never given much thought to their diets, reflecting the poor food choices of a nation with more and more obese people....
Healthy eating is deemed so essential that drill sergeants now include one-hour sessions on performance nutrition in addition to more traditional workouts.
Many recruits "have never been told how to properly eat," Staff Sgt. Travis Bammer said. "They think they can eat a candy bar for energy."
Army leaders report fewer injuries and higher scores on physical fitness tests at bases where the new program has been tested. Top Army leaders are watching the developments closely, Hertling said.
I'm not making this up, and it's not from the Onion, it's real! Check it out:
Yogurt In, Soda Out
FORT LEONARD WOOD, Mo., December 1 ---- At Army training sites across the nation, the mess hall is beginning to look different: Milk and juice dispensers are replacing soda fountains. Whole grains are being substituted for white bread and pasta.
The military increasingly believes that producing quality recruits starts at the dinner table during basic training, so it has started a new, more emphatic effort to change their eating habits. Now, color-coded labels point the way to healthy items, and drill sergeants stand watch over the chow line, calling out soldiers who don't put enough fruit on their plates.
Many new soldiers have never given much thought to their diets, reflecting the poor food choices of a nation with more and more obese people....
Healthy eating is deemed so essential that drill sergeants now include one-hour sessions on performance nutrition in addition to more traditional workouts.
Many recruits "have never been told how to properly eat," Staff Sgt. Travis Bammer said. "They think they can eat a candy bar for energy."
Army leaders report fewer injuries and higher scores on physical fitness tests at bases where the new program has been tested. Top Army leaders are watching the developments closely, Hertling said.
I'm not making this up, and it's not from the Onion, it's real! Check it out:
Yogurt In, Soda Out
Sunday, December 5, 2010
Excellent Article on Gerrymandering
Gerrymandering is a good example of both the gall and disrepect our elected representatives show us, citizens and their constituents. See the link for an excellent article on gerrymandering. Make sure to visit the bottom half for a section on districts that didn't even bother with gerrymandering, just went ahead and created incongruous districts! How is THIS even possible, let alone defensible?!
Surprisingly, California fares very well in this discussion, but does have it's exceptions. The U-T apparently doesn't have their excellent print article from today's Sunday paper online yet, but I'll add a link when it becomes available.
Gerrymandering Hall of Shame, November 2010
Surprisingly, California fares very well in this discussion, but does have it's exceptions. The U-T apparently doesn't have their excellent print article from today's Sunday paper online yet, but I'll add a link when it becomes available.
Gerrymandering Hall of Shame, November 2010
Wednesday, December 1, 2010
Entire Senate Republican Caucus Commits To Filibustering Anything Prior To Budget, Tax Cuts
Sen. Mitch McConnell took the Senate floor after the letter was issued and made this statement: "With just a few weeks to go before the end of the session, Democrats continue to place their own priorities over the priorities of the American people. These are the things Democrats have chosen to do instead of preventing a massive tax hike that economists tell us would stifle the economy.
Republicans have pleaded with Democrats to put aside their wish-list -- to focus on the things Americans want us to focus on. They've ignored us. The voters repudiated their agenda at the polls. They've ignored them. Time is running out. They're ignoring that."
This short statement is so disrespectful, not only to Democrats but to the American people. How disrespectful can he be? Does he expect Democrats to respect his points and opinions when he slings crap like this? This is the exact opposite of what we expect from our elected leaders, of any party.
Full Story
Republicans have pleaded with Democrats to put aside their wish-list -- to focus on the things Americans want us to focus on. They've ignored us. The voters repudiated their agenda at the polls. They've ignored them. Time is running out. They're ignoring that."
This short statement is so disrespectful, not only to Democrats but to the American people. How disrespectful can he be? Does he expect Democrats to respect his points and opinions when he slings crap like this? This is the exact opposite of what we expect from our elected leaders, of any party.
Full Story
Friday, October 15, 2010
AMTRAK Announces Record Ridership, While MTS Can't Figure Out Loss
Great news from Amtrak, for people who breathe, today and tomorrow: Amtrak set a new annual ridership record of 28,716,857 passengers for the fiscal year ending September 30, 2010, an increase of 5.7% over the previous year. The strong performance is evidence that the demand for passenger rail service is rising and that more Americans are choosing Amtrak — a greener and more convenient travel mode.
Since FY 2000, Amtrak ridership is up nearly 37 percent. AMTRAK Sets Ridership Record
Amtrak is 17 percent more energy efficient than either commercial airlines or automobiles. Amtrak has been consistently reducing its consumption of diesel fuel, thanks to improved operating practices and conservation measures.
Passenger rail-driven improvements have helped increase rail line capacity, which benefits freight trains that use the same tracks. Freight rail has a fuel consumption rate 11.5 times more energy efficient on a BTU per ton mile basis than trucks. A freight locomotive moving a ton of freight at an average of 235 miles per gallon in 1980 today moves more than 414 miles per gallon – a fuel efficiency improvement of more than 75 percent.
At the same time, MTS San Diego reported,
Trolley ridership drops substantially - Bad economy, high unemployment cited as likely causes for decline
By Robert J. Hawkins, October 13, 2010 at 7:36 p.m., updated October 14, 2010 at 7:46 a.m.
Trolley ridership
2008: 37,620,994
2009: 36,928,284
2010: 30,468,981
Total MTS ridership
2008: 90,652,960
2009: 92,072,445
2010: 82,759,217
....the Trolley has lost 6.5 million passengers.
While expressing reservations about their own numbers, Metropolitan Transit System officials say familiar suspects are behind this 17.5 percent ridership loss in fiscal 2010, which ended June 30: a bad economy, high unemployment, cutbacks in state funding, relatively stable gas prices.
“I really believe it is a reflection of the economy,” says county Supervisor Ron Roberts, a member of the MTS board of directors. “It is a concern, but I do not believe it is a rejection of the trolley by riders.”
The agency also raised rates last year and made some cutbacks in services to meet its budget. Almost no corner of the MTS system — city buses, express buses, trolleys — escaped the effects of a failed economy and double-digit unemployment. The whole system lost just more than 10 percent of its riders last year, according to the agency’s annual report.
Gee, what a surprise: rates go up and ridership goes down! Seems pretty simple to me. For the most part, I'm betting at least bus riders do so because they don't have the money to own a car. They are, in effect, trapped customers. So, MTS raises the rates, on those who can afford it the least, and their ridership goes down, what a surprise. Look at the year-over-year statistics: MTS is going backwards, and at a significant rate. At what point do they realize this, and take serious action? Let's hope it's soon.
Since FY 2000, Amtrak ridership is up nearly 37 percent. AMTRAK Sets Ridership Record
Amtrak is 17 percent more energy efficient than either commercial airlines or automobiles. Amtrak has been consistently reducing its consumption of diesel fuel, thanks to improved operating practices and conservation measures.
Passenger rail-driven improvements have helped increase rail line capacity, which benefits freight trains that use the same tracks. Freight rail has a fuel consumption rate 11.5 times more energy efficient on a BTU per ton mile basis than trucks. A freight locomotive moving a ton of freight at an average of 235 miles per gallon in 1980 today moves more than 414 miles per gallon – a fuel efficiency improvement of more than 75 percent.
At the same time, MTS San Diego reported,
Trolley ridership drops substantially - Bad economy, high unemployment cited as likely causes for decline
By Robert J. Hawkins, October 13, 2010 at 7:36 p.m., updated October 14, 2010 at 7:46 a.m.
Trolley ridership
2008: 37,620,994
2009: 36,928,284
2010: 30,468,981
Total MTS ridership
2008: 90,652,960
2009: 92,072,445
2010: 82,759,217
....the Trolley has lost 6.5 million passengers.
While expressing reservations about their own numbers, Metropolitan Transit System officials say familiar suspects are behind this 17.5 percent ridership loss in fiscal 2010, which ended June 30: a bad economy, high unemployment, cutbacks in state funding, relatively stable gas prices.
“I really believe it is a reflection of the economy,” says county Supervisor Ron Roberts, a member of the MTS board of directors. “It is a concern, but I do not believe it is a rejection of the trolley by riders.”
The agency also raised rates last year and made some cutbacks in services to meet its budget. Almost no corner of the MTS system — city buses, express buses, trolleys — escaped the effects of a failed economy and double-digit unemployment. The whole system lost just more than 10 percent of its riders last year, according to the agency’s annual report.
Gee, what a surprise: rates go up and ridership goes down! Seems pretty simple to me. For the most part, I'm betting at least bus riders do so because they don't have the money to own a car. They are, in effect, trapped customers. So, MTS raises the rates, on those who can afford it the least, and their ridership goes down, what a surprise. Look at the year-over-year statistics: MTS is going backwards, and at a significant rate. At what point do they realize this, and take serious action? Let's hope it's soon.
Sunday, September 12, 2010
$75,000 per Year Is Optimum Income
As seen in the San Diego Union-Tribune September 12, 2010, from the Wall Street Journal:
"Money can't buy happiness, but a study shows that we can earn it.
The study, which analyzed Gallup surveys of 450,000 Americans in 2008 and 2009, suggests that there were two forms of happiness: day-to-day contentment and overall satisfaction with one's place in the world. While a higher income brings little day-to-day contentment, it does boost people's overall satisfaction.
The study, conducted by Princeton University economist Angus Deaton and famed psychologist Daniel Kahneman, found that there's a specific dollar number, or income plateau, after which more money has no measurable effect on day-to-day contentment.
As people earn more money, their day-to-day happiness rises. That is, until you hit the magic number: $75,000 a year. After that, it's just more stuff, with no gain in happiness.
That doesn't mean wealthy and ultrawealthy people are equally happy. More money does boost people's overall satisfaction all the way up the income ladder. People who earned $160,000 a year, for instance, reported more overall satisfaction than people earning $120,000, and so on.
"Giving people more income beyond 75K is not going to do much for their daily mood...but it is going to make them feel they have a better life," Mr. Deaton told the Associated Press.
He added: "As an economist, I tend to think money is good for you, and am pleased to find some evidence for that."
However, $75,000 in New York doesn't buy as much as it would in, say, South Dakota. Based on cost-of-living index values from Kiplinger.com, the happiness salary would vary widely across the nation. For example, New Yorkers would have to earn $163,000 a year to achieve the $75,000 happiness level; in Chicago, $84,750. It took the least amount of money to achieve happiness in Fort Smith, Ark., and Pueblo, Colo., where a $62,000 salary buys $75,000 worth of happiness."
Reported the same day, with the headline "Ranks of Poor Grow at Record Clip," reporting that demographers expect one result of the US Census will be a rise in the poverty rate to 15%. In 2008, the poverty level stood at $22,025 for a family of four. I can't imagine providing for a family of four on that small amount! On top of this, the article reports that beginning next year, the government plans to publish new, supplemental poverty figures that are expected to show even higher numbers of people in poverty. This last sentence is good news: only if we know the true and complete story will we find the proper solutions, the will, and the fortitude to institute those solutions.
"Money can't buy happiness, but a study shows that we can earn it.
The study, which analyzed Gallup surveys of 450,000 Americans in 2008 and 2009, suggests that there were two forms of happiness: day-to-day contentment and overall satisfaction with one's place in the world. While a higher income brings little day-to-day contentment, it does boost people's overall satisfaction.
The study, conducted by Princeton University economist Angus Deaton and famed psychologist Daniel Kahneman, found that there's a specific dollar number, or income plateau, after which more money has no measurable effect on day-to-day contentment.
As people earn more money, their day-to-day happiness rises. That is, until you hit the magic number: $75,000 a year. After that, it's just more stuff, with no gain in happiness.
That doesn't mean wealthy and ultrawealthy people are equally happy. More money does boost people's overall satisfaction all the way up the income ladder. People who earned $160,000 a year, for instance, reported more overall satisfaction than people earning $120,000, and so on.
"Giving people more income beyond 75K is not going to do much for their daily mood...but it is going to make them feel they have a better life," Mr. Deaton told the Associated Press.
He added: "As an economist, I tend to think money is good for you, and am pleased to find some evidence for that."
However, $75,000 in New York doesn't buy as much as it would in, say, South Dakota. Based on cost-of-living index values from Kiplinger.com, the happiness salary would vary widely across the nation. For example, New Yorkers would have to earn $163,000 a year to achieve the $75,000 happiness level; in Chicago, $84,750. It took the least amount of money to achieve happiness in Fort Smith, Ark., and Pueblo, Colo., where a $62,000 salary buys $75,000 worth of happiness."
Reported the same day, with the headline "Ranks of Poor Grow at Record Clip," reporting that demographers expect one result of the US Census will be a rise in the poverty rate to 15%. In 2008, the poverty level stood at $22,025 for a family of four. I can't imagine providing for a family of four on that small amount! On top of this, the article reports that beginning next year, the government plans to publish new, supplemental poverty figures that are expected to show even higher numbers of people in poverty. This last sentence is good news: only if we know the true and complete story will we find the proper solutions, the will, and the fortitude to institute those solutions.
Tuesday, August 31, 2010
Wealth Inequality vs. Foreclosure Crisis
Interesting article on this subject, with good statistic backup: "Is income inequality to blame for the Great Recession? There are several ways to try to explain the potential connection between income inequality and economic crises. Bruce Judson of the Yale School of Management describes a "Governance Problem," whereby the wealthy use their increased income to control the levers of power to further consolidate their advantages ("insulate, insulate, insulate" as Sherman McCoy might say). The history of financial sector deregulation over the last thirty years tracks this rise in income equality. And many of the economic gains over this period can be traced to the financial sector."
See the full article with excellent graphs: http://www.huffingtonpost.com/ray-brescia/when-the-rich-get-risky-i_b_695535.html
See the full article with excellent graphs: http://www.huffingtonpost.com/ray-brescia/when-the-rich-get-risky-i_b_695535.html
Saturday, August 28, 2010
Sick to Death of Poor Government!
I'm sick to death of the very poor government we get stuck with, decade after decade. Who else thinks the watered-down education received at public high schools is a major reason we continue to suffer from this crap? Sure, there are plenty of good and great teachers; sure there are plenty of students who graduate and go on to become productive members of society. Sure, parents should and do have a major responsibility to educate their children. However, the schools still turn out millions of unthinking masses, who don't have even basic analytical skills, skills need to think for oneself. This is my point.
By the way, although I have my own liberal values, I have lots of friends who are conservative and rational, and whom I respect. My point or desire is not to produce more liberals, it's to produce more and better informed citizens, period. All of society would benefit, and it would not cost any more money than is already spent on education, our money.
In the mean time, I seriously want to see a disclaimer added to each high school diploma that includes "The education provided by this high school is in no way meant to prepare you for the real world. Any similarity between it and the tools to think for oneself is purely coincidental, yadda yadda." Help me fill in the yadda yadda if you agree.
By the way, although I have my own liberal values, I have lots of friends who are conservative and rational, and whom I respect. My point or desire is not to produce more liberals, it's to produce more and better informed citizens, period. All of society would benefit, and it would not cost any more money than is already spent on education, our money.
In the mean time, I seriously want to see a disclaimer added to each high school diploma that includes "The education provided by this high school is in no way meant to prepare you for the real world. Any similarity between it and the tools to think for oneself is purely coincidental, yadda yadda." Help me fill in the yadda yadda if you agree.
Monday, July 26, 2010
The Middle Class in America Is Radically Shrinking. Here Are the Stats to Prove it
Very scary statistics, assuming they are accurate. Everyone should be very concerned about these facts. How many people know these facts, and understand how telling they are?
From The Business Insider
Editor's note: Michael Snyder is editor of theeconomiccollapseblog.com
The 22 statistics detailed here prove beyond a shadow of a doubt that the middle class is being systematically wiped out of existence in America.
The rich are getting richer and the poor are getting poorer at a staggering rate. Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a blinding pace.
So why are we witnessing such fundamental changes? Well, the globalism and "free trade" that our politicians and business leaders insisted would be so good for us have had some rather nasty side effects. It turns out that they didn't tell us that the "global economy" would mean that middle class American workers would eventually have to directly compete for jobs with people on the other side of the world where there is no minimum wage and very few regulations. The big global corporations have greatly benefited by exploiting third world labor pools over the last several decades, but middle class American workers have increasingly found things to be very tough.
Here are the statistics to prove it:
• 83 percent of all U.S. stocks are in the hands of 1 percent of the people.
• 61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007.
• 66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.
• 36 percent of Americans say that they don't contribute anything to retirement savings.
• A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
• 24 percent of American workers say that they have postponed their planned retirement age in the past year.
• Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
• Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.
• For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.
• In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
• As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
• The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
• Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.
• In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
• The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.
• In America today, the average time needed to find a job has risen to a record 35.2 weeks.
• More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.
• or the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.
• This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
• Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.
• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
• The top 10 percent of Americans now earn around 50 percent of our national income.
From The Business Insider
Editor's note: Michael Snyder is editor of theeconomiccollapseblog.com
The 22 statistics detailed here prove beyond a shadow of a doubt that the middle class is being systematically wiped out of existence in America.
The rich are getting richer and the poor are getting poorer at a staggering rate. Once upon a time, the United States had the largest and most prosperous middle class in the history of the world, but now that is changing at a blinding pace.
So why are we witnessing such fundamental changes? Well, the globalism and "free trade" that our politicians and business leaders insisted would be so good for us have had some rather nasty side effects. It turns out that they didn't tell us that the "global economy" would mean that middle class American workers would eventually have to directly compete for jobs with people on the other side of the world where there is no minimum wage and very few regulations. The big global corporations have greatly benefited by exploiting third world labor pools over the last several decades, but middle class American workers have increasingly found things to be very tough.
Here are the statistics to prove it:
• 83 percent of all U.S. stocks are in the hands of 1 percent of the people.
• 61 percent of Americans "always or usually" live paycheck to paycheck, which was up from 49 percent in 2008 and 43 percent in 2007.
• 66 percent of the income growth between 2001 and 2007 went to the top 1% of all Americans.
• 36 percent of Americans say that they don't contribute anything to retirement savings.
• A staggering 43 percent of Americans have less than $10,000 saved up for retirement.
• 24 percent of American workers say that they have postponed their planned retirement age in the past year.
• Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008.
• Only the top 5 percent of U.S. households have earned enough additional income to match the rise in housing costs since 1975.
• For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.
• In 1950, the ratio of the average executive's paycheck to the average worker's paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.
• As of 2007, the bottom 80 percent of American households held about 7% of the liquid financial assets.
• The bottom 50 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.
• Average Wall Street bonuses for 2009 were up 17 percent when compared with 2008.
• In the United States, the average federal worker now earns 60% MORE than the average worker in the private sector.
• The top 1 percent of U.S. households own nearly twice as much of America's corporate wealth as they did just 15 years ago.
• In America today, the average time needed to find a job has risen to a record 35.2 weeks.
• More than 40 percent of Americans who actually are employed are now working in service jobs, which are often very low paying.
• or the first time in U.S. history, more than 40 million Americans are on food stamps, and the U.S. Department of Agriculture projects that number will go up to 43 million Americans in 2011.
• This is what American workers now must compete against: in China a garment worker makes approximately 86 cents an hour and in Cambodia a garment worker makes approximately 22 cents an hour.
• Approximately 21 percent of all children in the United States are living below the poverty line in 2010 - the highest rate in 20 years.
• Despite the financial crisis, the number of millionaires in the United States rose a whopping 16 percent to 7.8 million in 2009.
• The top 10 percent of Americans now earn around 50 percent of our national income.
Sunday, June 20, 2010
Ronald Reagan, The Ultimate Hawk? Not So Much
Follow the link to an excellent article comparing President Reagan to the myths surrounding him.
http://www.foreignpolicy.com/articles/2010/06/07/think_again_ronald_reagan?page=0,0
http://www.foreignpolicy.com/articles/2010/06/07/think_again_ronald_reagan?page=0,0
Transportation Freedom Day Marked
Los Angeles marked Transportation Freedom Day last week. What's that? It's the day when the typical median-income family has earned enough money to cover transportation costs for the entire year. Your basic middle-class L.A. household spends about $8,600 a year on gas, insurance, parking and vehicle maintenance, according to the California Public Interest Research Group, a watchdog organization. That compares with about $8,000 for the average U.S. family and represents more than 20% of most people's annual expenditures.
"It's an eye-opener how burdensome transportation is for most families," said Erin Steva, transportation advocate for CalPIRG. "People are spending more for this than they do for food, clothing and healthcare."
Yet what are we doing to make public transportation a more convenient and practical alternative for people? Not enough. ... it's almost as if the dozens of entities that constitute the region's public-transit network are conspiring to make the system as unwelcoming as possible.
LA Times, March 23, 2010
"It's an eye-opener how burdensome transportation is for most families," said Erin Steva, transportation advocate for CalPIRG. "People are spending more for this than they do for food, clothing and healthcare."
Yet what are we doing to make public transportation a more convenient and practical alternative for people? Not enough. ... it's almost as if the dozens of entities that constitute the region's public-transit network are conspiring to make the system as unwelcoming as possible.
LA Times, March 23, 2010
Wednesday, June 2, 2010
Double-tracking project to begin in June in Carlsbad
Great news for commuters: Starting in mid-June, contractors will add a second set of tracks to a two mile stretch of the coastal railway through Carlsbad. This will results in slightly more than 50% of the 60 mile coastal train route having double tracks.
Having a double set of tracks will provide new passing points for trains and reduce delays for both local Coaster commuter trains and Amtrak long-distance trains, John Eschenbach, senior project manager for Amtrak, said last week.
"This particular project will increase on-time performance and reliability," he said.
Most of the project's $16 million price tag is being paid for by Amtrak, but the state Department of Transportation contributed $1 million for design work, Eschenbach said.
Amtrak's Pacific Surfliner runs 24 trains a day along the coastal railway corridor, and the Coaster line has 22 daily trains. There also is regular freight train service along the route during the night-time hours.
While the extra row of tracks may improve existing train service, the number of trains using the route will not increase because of this project, officials have said.
That's because the new "double-tracked" area in Carlsbad will cover just a small portion of the regional coastal railway corridor. The full route between San Diego and the northern border of the county is 60 miles. Even after the conclusion of the Carlsbad project, just slightly more than 50 percent of that 60-mile route will have two sets of track, Eschenbach said.
Regional transportation planners have recently said that they want to have the full 60-mile coastal rail route in San Diego County double-tracked by 2030, adding that would allow up to 119 trains a day to use the route. However, they have had trouble finding funds for such a huge undertaking.
Hmm, just announced, a FOUR BILLION DOLLAR project to add ANOTHER FOUR LANES to sections of Interstate 5, which serves the same corridor. This project is insanity defined, doing the same thing and expecting different results, as if this will improve the horrible commuter and other traffic situation along I-5. Real progress would be to spend that money on converting the other ~30 miles of track to double-track first, and ASAP, which would allow for more trains and faster transit times, encouraging people to use the train instead of their personal traffic congesters. http://www.nctimes.com/news/local/carlsbad/article_6755bb05-6c9c-58fc-86bb-ebb39874a455.html?mode=story
Having a double set of tracks will provide new passing points for trains and reduce delays for both local Coaster commuter trains and Amtrak long-distance trains, John Eschenbach, senior project manager for Amtrak, said last week.
"This particular project will increase on-time performance and reliability," he said.
Most of the project's $16 million price tag is being paid for by Amtrak, but the state Department of Transportation contributed $1 million for design work, Eschenbach said.
Amtrak's Pacific Surfliner runs 24 trains a day along the coastal railway corridor, and the Coaster line has 22 daily trains. There also is regular freight train service along the route during the night-time hours.
While the extra row of tracks may improve existing train service, the number of trains using the route will not increase because of this project, officials have said.
That's because the new "double-tracked" area in Carlsbad will cover just a small portion of the regional coastal railway corridor. The full route between San Diego and the northern border of the county is 60 miles. Even after the conclusion of the Carlsbad project, just slightly more than 50 percent of that 60-mile route will have two sets of track, Eschenbach said.
Regional transportation planners have recently said that they want to have the full 60-mile coastal rail route in San Diego County double-tracked by 2030, adding that would allow up to 119 trains a day to use the route. However, they have had trouble finding funds for such a huge undertaking.
Hmm, just announced, a FOUR BILLION DOLLAR project to add ANOTHER FOUR LANES to sections of Interstate 5, which serves the same corridor. This project is insanity defined, doing the same thing and expecting different results, as if this will improve the horrible commuter and other traffic situation along I-5. Real progress would be to spend that money on converting the other ~30 miles of track to double-track first, and ASAP, which would allow for more trains and faster transit times, encouraging people to use the train instead of their personal traffic congesters. http://www.nctimes.com/news/local/carlsbad/article_6755bb05-6c9c-58fc-86bb-ebb39874a455.html?mode=story
Sunday, May 23, 2010
Freight Transportation In America
On May 22, President Obama directed the government to set the set the first-ever mileage and pollution limits for big trucks and to tighten rules for future cars and SUVs.
"The nation that leads in the clean energy economy will lead the global economy," Obama said at the White House. "And I want America to be that nation." The presidential memorandum he signed aims to reshape the country's driving habits long after he leaves office.
With the catastrophic oil spill in the Gulf of Mexico underscoring the risks of the country's heavy reliance on fossil fuels, Obama gave federal agencies just over a year to come up with fuel efficiency and greenhouse gas emission standards for commercial trucks and buses.
Such vehicles are big polluters and fuel consumers even though they're far outnumbered by passenger cars. The Union of Concerned Scientists, an environmental advocacy group, said large trucks represent about 4 percent of all vehicles on U.S. highways but devour more than 20 percent of the fuel consumed.
According to the Environmental Protection Agency, commercial trucks account for 21 percent of greenhouse gas emissions in the transportation sector - compared with 33 percent for passenger cars and 29 percent for SUVs, pickups and minivans.
The new standards, to be issued in July of next year, would apply to big trucks and buses for model years 2014-2018.
This is certainly progress, but given that trains can move a ton of freight 436 miles on a single gallon of fuel, the best longterm strategy by far is for the federal government to do everything in its power to facilitate the shift from longhaul truck to the rails. Right now the railroads are operating at near capacity. The first task is to lay more track, lots of it, cross country.
"The nation that leads in the clean energy economy will lead the global economy," Obama said at the White House. "And I want America to be that nation." The presidential memorandum he signed aims to reshape the country's driving habits long after he leaves office.
With the catastrophic oil spill in the Gulf of Mexico underscoring the risks of the country's heavy reliance on fossil fuels, Obama gave federal agencies just over a year to come up with fuel efficiency and greenhouse gas emission standards for commercial trucks and buses.
Such vehicles are big polluters and fuel consumers even though they're far outnumbered by passenger cars. The Union of Concerned Scientists, an environmental advocacy group, said large trucks represent about 4 percent of all vehicles on U.S. highways but devour more than 20 percent of the fuel consumed.
According to the Environmental Protection Agency, commercial trucks account for 21 percent of greenhouse gas emissions in the transportation sector - compared with 33 percent for passenger cars and 29 percent for SUVs, pickups and minivans.
The new standards, to be issued in July of next year, would apply to big trucks and buses for model years 2014-2018.
This is certainly progress, but given that trains can move a ton of freight 436 miles on a single gallon of fuel, the best longterm strategy by far is for the federal government to do everything in its power to facilitate the shift from longhaul truck to the rails. Right now the railroads are operating at near capacity. The first task is to lay more track, lots of it, cross country.
Friday, May 21, 2010
Putting Bicycle and Pedestrian Infrastructure on an Even Footing with Roads and Transit
I'm not making this, it's from a story on today's Bike To Work Day, emphasis mine:
"At DC's Freedom Plaza, Under Secretary for Policy Roy Kienitz spoke about why we are so keen on putting bicycle and pedestrian infrastructure on an even footing with roads and transit--and laid out a number of practical points to bike skeptics:
"We have some cold, logical reasons for this policy. We believe all transportation investments should justify themselves based on how effective they are in meeting overall goals like safety, environmental sustainability, convenience, etc. And it turns out that travel by bike helps us achieve all of these things. Plus, bike infrastructure is flat-out less expensive."
Also at Freedom Plaza, Federal Transit Administrator Peter Rogoff spoke about the role that bikes and transit can play in fostering livable communities. "When I'm not riding public transportation," he added, "I'm on my bike!"
Many of my old colleagues in Congress agree, especially Rep. Earl Blumenauer of Oregon who has been a passionate biking advocate for as long as I can remember. Rep. Blumenauer and 23 members of Congress--from both sides of the aisle--sent me a very kind letter yesterday thanking me for and DOT for "recognizing biking and walking as important components of our transportation system that deserve dedicated funding." Rep. Blumenauer has a great op-ed in the Huffington Post today on this subject as well.
Exciting things were also happening closer to DOT headquarters this morning. Next door, at Nationals Park, the Federal Highway Administration's Bicycle and Pedestrian Program Manager Gabe Rousseau spoke about the $1.2 billion federal investment in bicycle-pedestrian projects this fiscal year. He also reminded attendees that over 4 billion trips last year were taken by bicycle. Both of these are new records."
See more on this fantastic development at http://www.dot.gov/affairs/2010/bicycle-ped.html
These are quotes from people with the power to make the profound changes they now advocate. This is an exciting and overdue change in the way transportation dollars are allocated.
"At DC's Freedom Plaza, Under Secretary for Policy Roy Kienitz spoke about why we are so keen on putting bicycle and pedestrian infrastructure on an even footing with roads and transit--and laid out a number of practical points to bike skeptics:
"We have some cold, logical reasons for this policy. We believe all transportation investments should justify themselves based on how effective they are in meeting overall goals like safety, environmental sustainability, convenience, etc. And it turns out that travel by bike helps us achieve all of these things. Plus, bike infrastructure is flat-out less expensive."
Also at Freedom Plaza, Federal Transit Administrator Peter Rogoff spoke about the role that bikes and transit can play in fostering livable communities. "When I'm not riding public transportation," he added, "I'm on my bike!"
Many of my old colleagues in Congress agree, especially Rep. Earl Blumenauer of Oregon who has been a passionate biking advocate for as long as I can remember. Rep. Blumenauer and 23 members of Congress--from both sides of the aisle--sent me a very kind letter yesterday thanking me for and DOT for "recognizing biking and walking as important components of our transportation system that deserve dedicated funding." Rep. Blumenauer has a great op-ed in the Huffington Post today on this subject as well.
Exciting things were also happening closer to DOT headquarters this morning. Next door, at Nationals Park, the Federal Highway Administration's Bicycle and Pedestrian Program Manager Gabe Rousseau spoke about the $1.2 billion federal investment in bicycle-pedestrian projects this fiscal year. He also reminded attendees that over 4 billion trips last year were taken by bicycle. Both of these are new records."
See more on this fantastic development at http://www.dot.gov/affairs/2010/bicycle-ped.html
These are quotes from people with the power to make the profound changes they now advocate. This is an exciting and overdue change in the way transportation dollars are allocated.
Sunday, May 16, 2010
California Proposition 13 in 1978, and 2010
Calif. bill seeks to close property tax loopholes
By CATHY BUSSEWITZ, Associated Press Writer
Sunday, May 9, 2010 at 10 a.m.
SACRAMENTO, Calif. — Democratic lawmakers are determined to close tax loopholes they say cost state and local governments hundreds of millions of dollars each year, as they search for ways to trim California's enormous deficit.
A report by the union-funded California Tax Reform Association found that the share of property tax paid on residential property has increased since two-thirds of voters approved California's landmark Proposition 13 tax law in 1978, while the share paid on commercial property has decreased.
In Contra Costa County, for example, taxes on residential properties now make up 73 percent of property taxes collected, up from 48 percent in 1978.
Democrats and unions say many corporations are using loopholes when they buy and sell properties to avoid having them reassessed and their property taxes go up.
"The system is an incredible mess," said the association's executive director, Lenny Goldberg. "People are constantly changing their share of ownerships, figuring out ways to avoid reassessment."
So, a great idea, stopping senior citizens from being forced to sell their homes due to rising value, has been corrupted by corporations, nor real surprise here. The fact that our government, and I use the term 'our' loosely, has taken so long to even begin to do something about this corruption. The Republicans are opposed to 'tinkering' with the law, again no surpise here.
Why is it so hard for government to make things right? Of course this law needs to be fine-tuned, getting rid of the 50% rule regarding ownership. Doing so will take away a property tax excemption, provide more taxes to government coffers, and regain the spirit of the law.
For details on the report, follow the link.California Tax Reform Association Report on Prop 13
By CATHY BUSSEWITZ, Associated Press Writer
Sunday, May 9, 2010 at 10 a.m.
SACRAMENTO, Calif. — Democratic lawmakers are determined to close tax loopholes they say cost state and local governments hundreds of millions of dollars each year, as they search for ways to trim California's enormous deficit.
A report by the union-funded California Tax Reform Association found that the share of property tax paid on residential property has increased since two-thirds of voters approved California's landmark Proposition 13 tax law in 1978, while the share paid on commercial property has decreased.
In Contra Costa County, for example, taxes on residential properties now make up 73 percent of property taxes collected, up from 48 percent in 1978.
Democrats and unions say many corporations are using loopholes when they buy and sell properties to avoid having them reassessed and their property taxes go up.
"The system is an incredible mess," said the association's executive director, Lenny Goldberg. "People are constantly changing their share of ownerships, figuring out ways to avoid reassessment."
So, a great idea, stopping senior citizens from being forced to sell their homes due to rising value, has been corrupted by corporations, nor real surprise here. The fact that our government, and I use the term 'our' loosely, has taken so long to even begin to do something about this corruption. The Republicans are opposed to 'tinkering' with the law, again no surpise here.
Why is it so hard for government to make things right? Of course this law needs to be fine-tuned, getting rid of the 50% rule regarding ownership. Doing so will take away a property tax excemption, provide more taxes to government coffers, and regain the spirit of the law.
For details on the report, follow the link.California Tax Reform Association Report on Prop 13
How Much Government?
On the Back Page feature of Parade Magazine, May 9, 2010, David Gergen has an article about government spending. Here are some scary facts from that article:
- Public spending by federal, state, and local government was 24% of the GDP in 1950, 35% before the Great Depression, and could hit 44% this year.
- The European Union has agreed that it is dangerous for a country to allow its publicly held debt to exceed 60% of its GDP. The Congressional Budget Office says that the U.S. could hit 60% by the end of this year, and on it's current course could hit 100% by 2020.
Thursday, May 6, 2010
'(I Can't Get No) Satisfaction,' 45 Years Later
ABCNEWS ended their newscast tonight with a tribute to the anniversary of the greatest rock n roll song of all time, born 45 years ago. Nice tribute, ABCNEWS. After 45 years of hearing it over and over, it's still one of my favorite songs of alltime. ABCNEWS Story on Satisfaction
Saturday, May 1, 2010
Cheap Energy Addiction Leads to Human and Environmental Disaster
The recent tragic deaths of coal miners offshore oil rig workers and the growing environmental disaster have everyone from Credo Mobile/Working Assets to the President talking about knee-jerk reactions.
Let me present an alternative view. We demand cheap energy, and then go nuts when this produces death and destruction in the production of that cheap energy. Suppose that when the cost of gasoline was so high a couple of years ago, the federal and state policy makers had enacted new tax policy, something along the lines of gasoline will never sell for less than $3.90 per gallon, with the federal tax floating up and down to keep the gas at that price. Extra taxes would have been collected to help pay for our deficits, safety features in mines and oil rigs, damage repair for energy disasters like the one in the Gulf, mine disasters, etc. At the very same time, we would have reduced our demand, as happened when the price was so high. The high price helps incorporate the true cost of energy, and makes alternative energy forms more competitive price-wise. It also reduces the pressure to build new oil rigs, dig out more coal, and build new nuclear power plants.
Of course, higher costs of energy and the resulting reduction in demand will also decrease the need for war abroad.
Our problem is an addiction to cheap energy, pure and simple. When the true cost of energy is built into the price, we will all make better judgements, from demand to increasing supply of then cost-effective alternative energy. This is the message that we need to shout from the rooftops, continuously, instead of knee-jerk reactions to once-in-25-year catastrophic events.
That's my observation, what's yours?
Let me present an alternative view. We demand cheap energy, and then go nuts when this produces death and destruction in the production of that cheap energy. Suppose that when the cost of gasoline was so high a couple of years ago, the federal and state policy makers had enacted new tax policy, something along the lines of gasoline will never sell for less than $3.90 per gallon, with the federal tax floating up and down to keep the gas at that price. Extra taxes would have been collected to help pay for our deficits, safety features in mines and oil rigs, damage repair for energy disasters like the one in the Gulf, mine disasters, etc. At the very same time, we would have reduced our demand, as happened when the price was so high. The high price helps incorporate the true cost of energy, and makes alternative energy forms more competitive price-wise. It also reduces the pressure to build new oil rigs, dig out more coal, and build new nuclear power plants.
Of course, higher costs of energy and the resulting reduction in demand will also decrease the need for war abroad.
Our problem is an addiction to cheap energy, pure and simple. When the true cost of energy is built into the price, we will all make better judgements, from demand to increasing supply of then cost-effective alternative energy. This is the message that we need to shout from the rooftops, continuously, instead of knee-jerk reactions to once-in-25-year catastrophic events.
That's my observation, what's yours?
Sunday, April 11, 2010
Income Gap Grows During Recession - Not exactly a news flash
According to an article in today's Parade Magazine: Even as the economy shrank last year, the income gap—the divide between the country’s richest and poorest citizens—kept growing. In 1978, CEOs at the largest U.S. companies earned 35 times as much as the average worker. Today, that figure is more than 300:1, according to the Harvard Business Review.
In 2008, the U.S. Census Bureau reported that income inequality had reached a modern high, with the wealthiest 10% of the population earning 11.4 times as much as the poorest 10%. Research by Kevin Hallock, a professor at Cornell University, indicates that the trend persists: “From 1979 to 2009, after adjusting for inflation, the highest earners in the U.S. saw dramatic growth in their earnings while the lowest earners now make less than they did 30 years ago.”
Income inequality tends to be high in places with large populations of the very rich, like southern Connecticut, or the very poor, like Brownsville, Tex. It is also high in cities like New York, Miami, and Chicago, where middle-class people have fled to the suburbs over the years.
A gap between society’s rich and poor can have ugly consequences. Countries with greater income inequality have higher rates of teen pregnancy, infant mortality, obesity, mental illness, drug use, imprisonment, and homicide than countries where wealth is more evenly distributed, according to research by epidemiologists Richard Wilkinson and Kate Pickett.
In the U.S., measures like the progressive income tax, Medicaid, and welfare are used to address income inequality, but some economists and advocates say that we should go further. Nations like Austria, Belgium, and the Netherlands spend 7% to 8% of national income on social services for working-age people, compared to 2% in the U.S.
That figure is unlikely to change, however, as polls show that Americans believe people get ahead in life by virtue of their own efforts. “If you think the process is just, you might think the outcome is just, even though some people are homeless and others are very comfortable,” says Gary Burtless of the Brookings Institution.
— Rebecca Webber
There is a balance between coddling people and investing in people. Life, liberty, and the pursuit of happiness, and the full potential of each individual, are the responsibility and should be the goal, selfish and otherwise, of every member of our society. Why would any one want anything less?
In 2008, the U.S. Census Bureau reported that income inequality had reached a modern high, with the wealthiest 10% of the population earning 11.4 times as much as the poorest 10%. Research by Kevin Hallock, a professor at Cornell University, indicates that the trend persists: “From 1979 to 2009, after adjusting for inflation, the highest earners in the U.S. saw dramatic growth in their earnings while the lowest earners now make less than they did 30 years ago.”
Income inequality tends to be high in places with large populations of the very rich, like southern Connecticut, or the very poor, like Brownsville, Tex. It is also high in cities like New York, Miami, and Chicago, where middle-class people have fled to the suburbs over the years.
A gap between society’s rich and poor can have ugly consequences. Countries with greater income inequality have higher rates of teen pregnancy, infant mortality, obesity, mental illness, drug use, imprisonment, and homicide than countries where wealth is more evenly distributed, according to research by epidemiologists Richard Wilkinson and Kate Pickett.
In the U.S., measures like the progressive income tax, Medicaid, and welfare are used to address income inequality, but some economists and advocates say that we should go further. Nations like Austria, Belgium, and the Netherlands spend 7% to 8% of national income on social services for working-age people, compared to 2% in the U.S.
That figure is unlikely to change, however, as polls show that Americans believe people get ahead in life by virtue of their own efforts. “If you think the process is just, you might think the outcome is just, even though some people are homeless and others are very comfortable,” says Gary Burtless of the Brookings Institution.
— Rebecca Webber
There is a balance between coddling people and investing in people. Life, liberty, and the pursuit of happiness, and the full potential of each individual, are the responsibility and should be the goal, selfish and otherwise, of every member of our society. Why would any one want anything less?
Sunday, April 4, 2010
First Quarter 2010
My trip to Vermont was greatly successful. I met several cousins for the first time, including one who lives near Rutland, which is where my research has led. I found a new, oldest gravesite for an ancestor, in a very small town outside Rutland. Later I found a photo of this same headstone in The Westcott Family History book, or what I call The Big Red Book.
Today, Easter, is the first family holiday without Kathy's Mom Eileen and her oldest brother Michael, both of whom died since March 12, and only six days apart. A blessing for both of them, their quality of life had deteriorated greatly, especially for Eileen. They are now free of pain and suffering, and have joined Kathy's Dad Hank.
Today, Easter, is the first family holiday without Kathy's Mom Eileen and her oldest brother Michael, both of whom died since March 12, and only six days apart. A blessing for both of them, their quality of life had deteriorated greatly, especially for Eileen. They are now free of pain and suffering, and have joined Kathy's Dad Hank.
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