We are in an economic slowdown at the same time we're experiencing rising prices of essentials such as food and transportation. Of course, non-essentials are going up, too. But it's easier to adjust to those price increases by cutting back.
As we tighten our belts and adjust to making what we have left go further, it is natural to expect our government agencies to do the same. It is politically popular to talk about "eliminating waste and unnecessary spending." Unfortunately, in the real world those cuts rarely get applied to extravagant toilets, etc. Instead they translate into job losses and reduction of services to the public.
When we insist our government agencies reduce spending, we don't really want people to lose their jobs. We just want lower taxes. Sadly, we cannot eat our cake and have it still.
When any organization or agency cuts jobs, there are going to be more people competing for the jobs that remain. Unemployment rises. Even if you believe your job is secure, the prevailing job market has a dampening effect on wages. This can lead to a downward economic spiral as people cut back on spending to adjust.
In the United States the federal government is the largest single employer. When you add to those federal jobs all the jobs of the various states and municipalities, you can see that governmental cuts have a big impact on overall unemployment rates. Those taxes you pay may hurt, but lower wages and even unemployment hurt still more. Keep that in mind the next time you look at your paycheck stub.
That's Wade's two cents.
Wade Houston
June 27, 2008
Friday, June 27, 2008
Wednesday, June 18, 2008
The Blessings Of High Oil Prices
There is a lot of moaning and groaning about high oil and gasoline prices. It's understandable. No one likes paying for anything more than he has to. But with all the weeping and gnashing of teeth, there are a lot of people who are completely ignoring the numerous blessings this situation brings us. This filthy-dark, high price oil cloud has an amazingly bright silver lining.
Some of us have been saying for some time now that we need to break our dependence on foreign oil. One of the obstacles has been that oil was too cheap an option for energy independence advocates to gather the support and public will needed to make that happen. As the price of oil rises, the energy independence movement is gaining strength. Indeed, the reality of that fact has Saudi Arabia currently leading the way in trying to get the world price of oil under control. The pusher never wants to lose the junkie.
Environmentalists have been calling for higher mileage standards on our vehicles, but the legislative will has not been there in sufficient force. With high gasoline prices, the market forces are doing what the law makers failed to do. Gas guzzling monsters are losing sales. The public is demanding higher fuel efficiency. Car manufacturers are revamping their production lines accordingly. They previously denied being able to adjust to any new mandatory standards so rapidly. But, with their very survival on the line, we're hearing a different song.
Safety advocates have long urged people to slow down while driving, to stay within the speed limit. Now, many people are slowing down. They aren't doing it because it decreases the chances they will be in an accident. They are driving closer to the limit because of the certainty it will improve their gas mileage. Some are even allowing more distance between their own cars and the vehicle in front so as to avoid breaking as often.
Those who concern themselves with traffic congestion have to be pleased that people are making fewer unnecessary trips. Drivers are combining errands and planning routes more efficiently. Carpoolers are growing in number. Those with short commutes are even getting more exercise by walking or riding bicycles.
In many cities, public transportation has been woefully underfunded. There just was not the demand to justify the investment. Thanks to higher gasoline prices that situation is changing. More and more people are leaving their cars at home and taking the bus, subway or train. Under current circumstances, cities find the support for expanding transportation services to be greater than ever. As public transportation is improved, it becomes a viable option for more and more people.
Investment in alternative energy technologies has lagged far behind what has been needed. But, necessity is the mother of invention. With oil prices so high, alternative energy applications become more viable economically. As demand for these applications grows, so will the investment to make them more efficient and economical.
I am amazed to see so many changes happening at once! I had feared we would adjust to gradually increasing oil prices the way tobacco addicts accepted the rising price of cigarettes. It is my belief that only the suddenness of the steep rise in the price of oil has created this shift. Wisdom has long been crying for these changes. The present pain could have been avoided, a crises averted. Instead, we have waited until our shocked wallets demand something different. So be it.
I'm still going to look for the lowest priced gasoline to fill my tank, but I can appreciate the benefits high fuel prices are bringing us. I don't like the pain, but bring on the blessings!
That's Wades 2 cents.
Wade Houston
June 18, 2008
Some of us have been saying for some time now that we need to break our dependence on foreign oil. One of the obstacles has been that oil was too cheap an option for energy independence advocates to gather the support and public will needed to make that happen. As the price of oil rises, the energy independence movement is gaining strength. Indeed, the reality of that fact has Saudi Arabia currently leading the way in trying to get the world price of oil under control. The pusher never wants to lose the junkie.
Environmentalists have been calling for higher mileage standards on our vehicles, but the legislative will has not been there in sufficient force. With high gasoline prices, the market forces are doing what the law makers failed to do. Gas guzzling monsters are losing sales. The public is demanding higher fuel efficiency. Car manufacturers are revamping their production lines accordingly. They previously denied being able to adjust to any new mandatory standards so rapidly. But, with their very survival on the line, we're hearing a different song.
Safety advocates have long urged people to slow down while driving, to stay within the speed limit. Now, many people are slowing down. They aren't doing it because it decreases the chances they will be in an accident. They are driving closer to the limit because of the certainty it will improve their gas mileage. Some are even allowing more distance between their own cars and the vehicle in front so as to avoid breaking as often.
Those who concern themselves with traffic congestion have to be pleased that people are making fewer unnecessary trips. Drivers are combining errands and planning routes more efficiently. Carpoolers are growing in number. Those with short commutes are even getting more exercise by walking or riding bicycles.
In many cities, public transportation has been woefully underfunded. There just was not the demand to justify the investment. Thanks to higher gasoline prices that situation is changing. More and more people are leaving their cars at home and taking the bus, subway or train. Under current circumstances, cities find the support for expanding transportation services to be greater than ever. As public transportation is improved, it becomes a viable option for more and more people.
Investment in alternative energy technologies has lagged far behind what has been needed. But, necessity is the mother of invention. With oil prices so high, alternative energy applications become more viable economically. As demand for these applications grows, so will the investment to make them more efficient and economical.
I am amazed to see so many changes happening at once! I had feared we would adjust to gradually increasing oil prices the way tobacco addicts accepted the rising price of cigarettes. It is my belief that only the suddenness of the steep rise in the price of oil has created this shift. Wisdom has long been crying for these changes. The present pain could have been avoided, a crises averted. Instead, we have waited until our shocked wallets demand something different. So be it.
I'm still going to look for the lowest priced gasoline to fill my tank, but I can appreciate the benefits high fuel prices are bringing us. I don't like the pain, but bring on the blessings!
That's Wades 2 cents.
Wade Houston
June 18, 2008
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