Wednesday, October 29, 2014

the emotional wreck of being a younger sister

"Do you want to build a snowman? Come on, let's go and play. I never see you anymore. Come out the door; it's like you've gone away. We used to be best buddies, and now we're not. I wish you would tell me why. Do you want to build a snowman?

"It doesn't have to be a snowman."

Go away.

"Okay, bye.

"Do you want to build a snowman, or ride our bike around the hall? I think some company is overdue. I've started talking to the pictures on the walls. It gets a little lonely, all these empty rooms, just watching the hours tick by.

"Please, I know you're in there. People are asking where you've been. They say have courage, and I'm trying to. I'm right out here for you. Please let me in. We only have each other; it's just you and me. What are we gonna do?

"Do you want to build a snowman?"

source:
Do You Want to Build a Snowman? Lyrics from Disney's Frozen - Disney Song Lyrics

Sunday, October 12, 2014

Econ 101 - Government subsidies, or Don't Be Silly

I keep reading about "progressives", a misnomer if I've ever heard one, who decry the government handouts to corporations... the most common target is what they lovingly refer to as "Big Oil"... Big Oil, they say, should not receive government subsidies because they're corporations... they're big enough to not need the money... and they're right; the companies do not need the money... but this shows a terrible naiveté about how money works.

let's say a barrel of crude oil costs $104, as it did in July of 2014... Big Oil is allowed a tax credit off this price due to an exception in the tax code... they're allowed to "write-off" about 15% of the cost of extraction from their federal taxes... now, this doesn't equate one-to-one to dollars they save, but some sources say this, along with other tax breaks, equates to over $4 billion dollars each year.

if we stop those tax breaks, the government gains $4 billion dollars... but where does that come from?... will Big Oil swallow that bitter pill?

don't be silly.

these costs will be borne by the consumers of Big Oil... the truckers who bring goods to market will pay the most... will they bear the lion's share alone?

don't be silly.

will the grocery stores and retail outlets pay that price for the increased costs of delivering the good they sell?

don't be silly.

the consumers, the American people, will shoulder the cost... reduction or removal of any government subsidy is an indirect tax on the populous... to believe otherwise is to believe in fairy tales.

speaking of fairy tales, there is something the government can do to offset the damage done to their citizens... they could reduce the taxes imposed by the government on the sale of gasoline and other petroleum products.

don't be silly.

the federal and state governments make 40 cents per gallon sold in the United States... Exxon, for example, made 7 cents per gallon (in 2011)... these progressives want Big Oil to pay these taxes out of their pockets, yet will they open their own purses to help those actually paying the costs?

Don't. Be. Silly.


  • Crude Oil: 67%.
  • Refining Costs and Profits: 12%
  • Distribution, Marketing, and Retail Costs and Profits: 9%
  • Taxes: 12%.
    • Federal excise taxes were 18.4 cents per gallon
    • State excise taxes average 23.52 cents per gallon


Source:
This Eye-Opening Map Shows The Reason Gas Is More Expensive And Who’s Profiting The Most - The Federalist Papers; by Steve Straub on July 14, 2014

Happy 100th Birthday, Big Oil Tax Breaks - ThinkProgress; by Rebecca Leber on March 1, 2013

What do I pay for in a gallon of regular gasoline? - US Energy Information Administration FAQ

How much oil is consumed in the United States? - US Energy Information Administration FAQ

Who Really Gets Rich Off High Gas Prices? - Wall Street Journal; By Drew Johnson on August 2, 2012

Who makes more from sales at the pump – industry or government? - ExxonMobile; by Ken Cohen August 8, 2012

Gasoline Tax Profits - Factcheck.org; on April 11, 2008

Who Really Gets Rich Off High Gas Prices? - Salon.com; by Richard Rider on August 9, 2012

State and Federal Treasuries "Profit" More from Gasoline Sales than U.S. Oil Industry - TaxFoundation.org; By Jonathan Williams, Scott A. Hodge on October 26, 2005

Saturday, September 6, 2014

shoes and the minimum wage (a lesson in economics)

everybody needs shoes... kicks, chucks, treads, toms, shit-kickers, high-heel, pumps, crocs, flip-flops, boots, tennis, deck, loafers... doesn't matter what shoe, but you've gotta have them, right?

and you need more than one pair of shoes, right ladies?... even you guys need a few... formal shoes... work shoes... brown shoes and black shoes... beach shoes... house shoes... boat shoes for those nautical among us... high-heel; low rise; open toe; strappy; slip-on; zip-up... a shoe for every occasion!

how about those Jimmy Choo shoes?... now that's some footwear!... and we're not just talking Ivette Patent Sandals... no, we're talking Chocolate and Cobalt Suede Shearling Lined Hi-tops, too... and Amore Pointed Toe Ankle Boots... and Prescott Glossed-Leather and Suede Dégradé Derby Shoes.

so... why aren't all of your shoes made by Jimmy Choo?... what, too expensive?... that's not fair... that's classist, if not outright racist!... everyone should be able to afford Jimmy Choo's!!!

no?

not true?

but what if ALL shoes cost $750, like Jimmy Choo's?... what if Nike, Reebok, Converse, TOMS, Puma, and every style and type of shoe cost $750?... how many pairs of shoes would you have?

you might get one pair.

you'd probably go without.

and when you finally saved up enough money to buy a pair, would you get just any old shoe?... would you get a pair of Croc's?... or flip-flops?... hell no!... you'd get the best, most reliable, sturdiest pair of shoes you could find... you'd make sure that you would NEVER damage or lose that pair of shoes... and you'd guard them like they were made of gold... hell, they might just BE made of gold for $750.

this sounds foolish, doesn't it?

everyone knows that there are classes of shoes... some are worth more than others... some people are willing to buy cheap pair of shoes, knowing full well that they won't last very long, and they'll have to buy another pair of cheap shoes to replace them.

some people will spend more on a pair of shoes... they'll take good care of those shoes... if they get damaged, they'll try to fix the problem before buying a new pair... maybe a new heel... re-sole the tread... new laces.

and a few people will buy expensive shoes, wear them once, and forget about them.

common knowledge.

now, imagine you are a business owner.

you don't need shoes; you need employees... you want to buy the best employee you can with what money you have... do you buy the most expensive employee on the market?... maybe you do, and you show off to your clientele that your company has the best employees money can buy... maybe you buy the best and put them in a corner office with a nice fat salary and no responsibilities... you buy them, and forget them.

or maybe you're more frugal... you want a good employee... one who will last... one who will do the job needed without a lot of upkeep... so you buy a mid-level employee at a fair salary... you don't want him to leave, so on occasion you give him the odd bonus... maybe a small raise... or a pat on the back, just so he knows he's appreciated... you take care of your employee because you don't want to buy a new one... not unless you have to.

or maybe you can't afford an expensive employee... maybe you don't have a business that makes a lot of excess money... so you go for a low wage, or even minimum wage, hourly employee... you know they're not going to be great employees... but you can afford to buy one now, and you can replace them when they stop working... maybe you don't take great care of them, and another employer steals them away from you, possibly offering them a salaried job... that's okay... you can afford to buy another... but you can't afford much, so you buy another minimum wage employee.

but what if ALL employees cost the same?

what if minimum wage was $15 an hour, and you can only afford $7.50... what then?

do you get one employee when you really need two?

do you go without?