January 31, 2007

Is it a good deal or not?

A few weeks ago, there was a lady on the news who would fill up her car with gasoline in Ohio because the price is cheaper. At the time the Pittsburgh gas average was about $2.29 and the Ohio gas she was buying was $1.89 per gallon.

Her and her husband live near Ohio and he commutes to Pittsburgh everyday for his job. She said he spends about $100 a week on gas and that the difference in price from Ohio to Pittsburgh will save him half.

Let’s figure this out. She said it is about a 1-hour commute for him, but that doesn’t tell us how many miles it is. We will assume 60 miles. Lets also assume that he does spend $100 a week on gas. $100 divided by $2.29 per gallon = 43.6 gallons of gas per week! 120 miles a day x 5 days a week = 600 miles per week. 600 miles divided by 43.6 gallons…. Hmm 0.2 miles per gallon a new fuel inefficiency record!

I think this lady is mistaken, but lets continue with the analysis. She thinks her husband will spend half as much since the gas is cheaper in Ohio. Ok. $2.29 divided by 2 equals $1.145. $1.145 is less than $1.89.

How much is he really saving? Let’s assume he is still purchasing 43.6 gallons, so 43.6 gallons times $1.89 per gallon equals $82.40. Not near half, but still a savings and probably worth it since they live near the gas station.

The next time you think you are getting a good deal, run the numbers for yourself! I always laugh when someone starts telling me about this great deal they got on their new car lease! Then I really get a good laugh a few years later when the car lease is up and they actually run the numbers!

Enjoying the snow in Doe Valley.

January 18, 2007

Federal Minimum Wage

Federal Minimum Wage

Well, the House has approved the minimum wage increase as part of the Democrat’s 100 hours deal, but did you read the bill? Here take a look at it by following this link. It is a simple bill to read and isn’t very long.

Make sure you read Section 3. What is the Commonwealth of the Northern Mariana Islands and why do they have a different minimum wage rate than the rest of the country? You can read more about the island here.

Interesting reading. Why would the Democrat’s specifically mention this regarding the Northern Mariana Islands? I’ll tell you why! These islands have been a harbor for questionable Republican dealings in the past, so the Democrats made sure this island was not exempt this time!

Great! It is nice to see the Democrats want to clean up some of the past corruption, but why wasn’t the American Samoa islands included in the bill. I’ll tell you why! Del Monte Foods! What? Yep, Del Monte Foods is headquartered in San Francisco. Who is the representative from San Francisco? Our friend Nancy Pelosi!

OK, but what does Del Monte Foods have to do with the American Samoa Islands? In 2002, Del Monte Foods purchased StarKist seafood company. The American Samoa Island’s main industry is Tuna processing! Funny how this didn’t make the front page news!

It sure looks like the Democrat’s are already playing political games in their first 100 hours and the media is going along with it! It is going to be a long couple of years.