I just finished reading an opinion column about global warming in my computer magazine. So I felt the immediate need to respond to the author. The article can be found on ComputerWorld's website.
Opinion: E-waste Not
Global warming?
“The scientific consensus is that the release of greenhouse gases through the consumption of fossil fuels causes global warming.” (Mark Hall, Computerworld magazine February 19, 2007 Vol 41. No. 8, page 20)
The scientific consensus also believed the world was flat until Christopher Columbus proved them wrong in 1492. Science isn’t always right. There are many scientists that do not buy into the global warming debate as being as drastic as Al Gore and others make it out to be. Notice, I could have used many nicknames for Mr. Gore, but I restrained myself, unlike you, calling the President of the United States names. I realize we have freedom of speech and press, however, a distinguished journalist would not stoop to such levels.
Is global warming happening? Who knows for sure, but one day the earth will definitely be very hot, read Revelation 20 for more information.
For more information about global warming read these articles:
PhillyMagazine
USA Today
February 22, 2007
February 07, 2007
Running Rendell’s Sales Tax Numbers!
As I am sure everyone knows by now Ed Rendell wants to increase the PA state sales tax (along with other taxes and also borrow money, just to create a larger government) to 7% from 6%. He only told half of the story yesterday, as usual. So here are the real numbers when calculated fully!
According to the IRS table the PA standard sales tax is $596 for a couple making between $50,000 and $60,000 Follow this link for your own calculation (http://www.irs.gov/individuals/article/0,,id=152421,00.html).
So $596 divided by 6% = $9933.33. This is the estimated amount of taxable purchases per year.
If we again spend $9933.33, but this time it is taxed at 7% we will be paying ($9933.33 times 7%) $695 in sales tax.
According to Rendell’s statistics less than one-third of the amount will be going toward property tax relief, the rest will be to pay for more government! So are you willing to pay $100 more a year in sales tax to save $33 a year on property taxes!? That is the real question. In other words, for every $3 you spend on sales tax you will save $1 on property tax. This makes no sense. Now, if Rendell was raising the sales tax and completely eliminating property taxes, then you would have real reform. All he wants to do is shift taxes around and to create a bigger government.
***Note, these calculations do not take into account large purchases, such as cars, homes, boats, tractors, etc. which would increase the amount of sales tax you pay. ***
Wait a minute….didn’t we just legalize gambling in PA to provide property tax relief? What happened to that? Exactly, part of the money is going for property tax relief and the rest is going to bigger government.
It is time for a change. PA is losing jobs, workers, and market freedom (Rendell also wants to limit hand gun sales among other things, but that topic is for another day). Government needs to be cut in half and the free market forces need to be able to balance the supply and demands of the economy without government interference.
Write to all of your representatives and demand that taxes are not raised and no new taxes are created. Stop wasteful government spending and eliminate unnecessary programs and lower taxes before it is too late for all of Pennsylvania.
Alot to think about today!
Wes
According to the IRS table the PA standard sales tax is $596 for a couple making between $50,000 and $60,000 Follow this link for your own calculation (http://www.irs.gov/individuals/article/0,,id=152421,00.html).
So $596 divided by 6% = $9933.33. This is the estimated amount of taxable purchases per year.
If we again spend $9933.33, but this time it is taxed at 7% we will be paying ($9933.33 times 7%) $695 in sales tax.
According to Rendell’s statistics less than one-third of the amount will be going toward property tax relief, the rest will be to pay for more government! So are you willing to pay $100 more a year in sales tax to save $33 a year on property taxes!? That is the real question. In other words, for every $3 you spend on sales tax you will save $1 on property tax. This makes no sense. Now, if Rendell was raising the sales tax and completely eliminating property taxes, then you would have real reform. All he wants to do is shift taxes around and to create a bigger government.
***Note, these calculations do not take into account large purchases, such as cars, homes, boats, tractors, etc. which would increase the amount of sales tax you pay. ***
Wait a minute….didn’t we just legalize gambling in PA to provide property tax relief? What happened to that? Exactly, part of the money is going for property tax relief and the rest is going to bigger government.
It is time for a change. PA is losing jobs, workers, and market freedom (Rendell also wants to limit hand gun sales among other things, but that topic is for another day). Government needs to be cut in half and the free market forces need to be able to balance the supply and demands of the economy without government interference.
Write to all of your representatives and demand that taxes are not raised and no new taxes are created. Stop wasteful government spending and eliminate unnecessary programs and lower taxes before it is too late for all of Pennsylvania.
Alot to think about today!
Wes
February 05, 2007
Kilz Paint Response
Below is the response from Kilz paint regarding our questions. See if they answered our questions by reading the previous blog posting first.
Thank you for contacting Kilz.
1) The only reason certain areas will turn pink after showering is if the product is not 100% dry in those areas. You can either allow more dry time before subjecting the bathroom to moisture from tub/shower or you can prime the surface with Kilz Original oil based primer and then topcoat with Kilz Casual Color Ceiling Paint,. We suggest you put a fan in the doorway and bring in fresh air circulation into the room to help dry faster. Open a window across from the bathroom if possible so the humidity leaves the area.
2) All latex paints (and stains) contain detergent-like substances called surfactants. They can be tan or brown in color, and can appear glossy, soapy, or sticky. These are necessary to the paint formula and are used in the process of making paint. Under certain curing conditions, such as low temperatures or condensing moisture, a leaching process occurs which results in a build-up of surfactants on the surface of the paint film.
Surfactants are not part of the paint film, and their coming out of the paint film does no harm. In most cases, these substances come out of the paint film slowly and are often washed away undetected.
Once the paint has fully dried, wash the affected area with warm water. The problem may occur once or twice more before the surfactants are completely removed.
Thank you for contacting Kilz.
1) The only reason certain areas will turn pink after showering is if the product is not 100% dry in those areas. You can either allow more dry time before subjecting the bathroom to moisture from tub/shower or you can prime the surface with Kilz Original oil based primer and then topcoat with Kilz Casual Color Ceiling Paint,. We suggest you put a fan in the doorway and bring in fresh air circulation into the room to help dry faster. Open a window across from the bathroom if possible so the humidity leaves the area.
2) All latex paints (and stains) contain detergent-like substances called surfactants. They can be tan or brown in color, and can appear glossy, soapy, or sticky. These are necessary to the paint formula and are used in the process of making paint. Under certain curing conditions, such as low temperatures or condensing moisture, a leaching process occurs which results in a build-up of surfactants on the surface of the paint film.
Surfactants are not part of the paint film, and their coming out of the paint film does no harm. In most cases, these substances come out of the paint film slowly and are often washed away undetected.
Once the paint has fully dried, wash the affected area with warm water. The problem may occur once or twice more before the surfactants are completely removed.
Kilz Paint
Below is a letter sent to Kilz paint regarding our bathroom walls. The next blog post will be their response.
Hello,
My wife and I purchased 4 gallons of Kilz paint and have some questions about it. Our ceilings and walls are all Dry-Wall which were all primed, but not with Kilz primer.
1. We purchased Kilz stainblocking ceiling paint – interior water-base. It is pink while being applied and then it turns white after it dries. We painted our 3 bathroom ceilings with this in December. Yesterday after our showers, (January 29th) we noticed that certain areas of the ceiling in our master bathroom were turning pink again. We do run the bathroom fan during and after our showers to draw out the moisture. What is causing the ceiling to turn pink? Is this normal? Do we need to do something different? Will this cause any damage to our ceiling?
2. We purchased Casual Color Alfalfa interior semi-gloss enamel (base2) for our master bathroom walls. We applied the paint and it looked terrible. It did not cover the wall very good at all. We put a second coat on the next day and it still seemed very bad, it was too light and you could still almost see the white primer paint behind it. A few days later, we decided to purchase a darker green and repaint. This time it was (Casual Color) Dried Flava (or something like that)interior semi-gloss enamel (bright white/base 1). The first coat didn’t seem to cover the Alfalfa paint very well, so we put a second coat on the next day. We let the paint dry for two days before using the bathroom. It looked better, however, after our shower we notice the walls change color in certain areas and it appears as though the paint is “running” or streaking down the wall. The walls lighten up and look like the original Alfalfa color, then when dry, they turn back to the darker color. Any ideas why the wall is doing this and what can we do to fix this problem? Is this normal? When we touch the streaking area it is just wet with water, no green paint gets on our hands or clothes.
I am glad to say that the last gallon of paint we bought, CasualColor Blue Point interior semi-gloss enamel (bright white/base 1), appears to have covered our ½ bath walls nicely with one coat.
We painted the ceilings and walls with the same type of brushes and rollers using the same techniques. All of the walls were built at the same time (2005). Any suggestions or recommendations would be greatly appreciated. Thank you
Hello,
My wife and I purchased 4 gallons of Kilz paint and have some questions about it. Our ceilings and walls are all Dry-Wall which were all primed, but not with Kilz primer.
1. We purchased Kilz stainblocking ceiling paint – interior water-base. It is pink while being applied and then it turns white after it dries. We painted our 3 bathroom ceilings with this in December. Yesterday after our showers, (January 29th) we noticed that certain areas of the ceiling in our master bathroom were turning pink again. We do run the bathroom fan during and after our showers to draw out the moisture. What is causing the ceiling to turn pink? Is this normal? Do we need to do something different? Will this cause any damage to our ceiling?
2. We purchased Casual Color Alfalfa interior semi-gloss enamel (base2) for our master bathroom walls. We applied the paint and it looked terrible. It did not cover the wall very good at all. We put a second coat on the next day and it still seemed very bad, it was too light and you could still almost see the white primer paint behind it. A few days later, we decided to purchase a darker green and repaint. This time it was (Casual Color) Dried Flava (or something like that)interior semi-gloss enamel (bright white/base 1). The first coat didn’t seem to cover the Alfalfa paint very well, so we put a second coat on the next day. We let the paint dry for two days before using the bathroom. It looked better, however, after our shower we notice the walls change color in certain areas and it appears as though the paint is “running” or streaking down the wall. The walls lighten up and look like the original Alfalfa color, then when dry, they turn back to the darker color. Any ideas why the wall is doing this and what can we do to fix this problem? Is this normal? When we touch the streaking area it is just wet with water, no green paint gets on our hands or clothes.
I am glad to say that the last gallon of paint we bought, CasualColor Blue Point interior semi-gloss enamel (bright white/base 1), appears to have covered our ½ bath walls nicely with one coat.
We painted the ceilings and walls with the same type of brushes and rollers using the same techniques. All of the walls were built at the same time (2005). Any suggestions or recommendations would be greatly appreciated. Thank you
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.
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.
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.
November 16, 2006
Keith Ellison - for the middle class?
On Kare 11 Tv’s website Keith Ellison, the newly elected Democratic Representative from Minnesota, is quoted as saying “Middle class prosperity is a crucial issue to me -- that means tax justice, a livable minimum wage, the right to organize a labor union.” Click here to link to the article.
Let’s evaluate his statement a little further. “Middle class prosperity is a crucial issue to me.” Wonderful, I wonder what his definition of the middle class is? The Drum Major Institute for Public Policy defines the middle class as families with incomes between $25,000 and $100,000 per year. Since the Drum Major Institute typically support Democratic measures I’ll use their definition for the remainder of the article.
The first statement is “tax justice.” Again, I ask what is tax justice in this case? Fair taxes I suppose. Are the middle class workers paying too much or not enough taxes? He doesn’t specify. Typically, the Democratic party raises taxes which affect most people. Is Ellison for the middle class? I am not sure yet.
The next statement is “a livable minimum wage.” Currently, the federal minimum wage is set at $5.15 per hour, although many states have increased their own minimum wage standards. How many people in the middle class make minimum wage? Let’s see, $5.15 per hour x 40 hours per week x 52 weeks per year equals $10,712. That’s not middle class, even with two adults working in the household it is still not middle class ($10,712 x 2 = $21,424). By increasing the minimum wage you simply shift the middle class distribution, not improve it. Is Ellison for the middle class? Not with this statement.
Finally, the last statement, “the right to organize a labor union.” Middle class workers are usually white collar or lower management type positions. Why would they need a labor union? Unemployment is currently around 4.6%, we are close to full employment in the United States. If you don’t like your job, find a new one! I realize some areas of the country are worse than others, but labor unions will not solve those problems! In fact, labor unions would increase unemployment, hurting the middle class workers Ellison claims he wants to prosper! The current unemployment rate in Minnesota is around 3.8%, even better than the national rate.
In conclusion, is Keith Ellison for the middle class? I don’t think so, but I guess we’ll see thanks to the voters of Minnesota. Just my thoughts! Let me know yours!
Let’s evaluate his statement a little further. “Middle class prosperity is a crucial issue to me.” Wonderful, I wonder what his definition of the middle class is? The Drum Major Institute for Public Policy defines the middle class as families with incomes between $25,000 and $100,000 per year. Since the Drum Major Institute typically support Democratic measures I’ll use their definition for the remainder of the article.
The first statement is “tax justice.” Again, I ask what is tax justice in this case? Fair taxes I suppose. Are the middle class workers paying too much or not enough taxes? He doesn’t specify. Typically, the Democratic party raises taxes which affect most people. Is Ellison for the middle class? I am not sure yet.
The next statement is “a livable minimum wage.” Currently, the federal minimum wage is set at $5.15 per hour, although many states have increased their own minimum wage standards. How many people in the middle class make minimum wage? Let’s see, $5.15 per hour x 40 hours per week x 52 weeks per year equals $10,712. That’s not middle class, even with two adults working in the household it is still not middle class ($10,712 x 2 = $21,424). By increasing the minimum wage you simply shift the middle class distribution, not improve it. Is Ellison for the middle class? Not with this statement.
Finally, the last statement, “the right to organize a labor union.” Middle class workers are usually white collar or lower management type positions. Why would they need a labor union? Unemployment is currently around 4.6%, we are close to full employment in the United States. If you don’t like your job, find a new one! I realize some areas of the country are worse than others, but labor unions will not solve those problems! In fact, labor unions would increase unemployment, hurting the middle class workers Ellison claims he wants to prosper! The current unemployment rate in Minnesota is around 3.8%, even better than the national rate.
In conclusion, is Keith Ellison for the middle class? I don’t think so, but I guess we’ll see thanks to the voters of Minnesota. Just my thoughts! Let me know yours!
November 08, 2006
Election 2006!
Below is a letter sent to the Ed Rendell, Bob Casey, John Murtha, and Dave Reed; winners of the November 7, 2006 election for my hometown area.
Congratulations on your win in the recent election! Pennsylvania and America needs a responsible government; one that will not waste its resources. We need reform, not just business or politics as usual. Below are several areas the government needs to review at all levels.
1. Budget Reform – stop wasteful spending, corporate subsidies and eliminate other unnecessary expenses and programs.
2. Lower taxes for businesses and households. Make the tax cuts permanent. This will require budget cuts and eliminating programs.
3. Bills that are created and passed should have no unnecessary earmarks or other riders attached which are not related to the bill. To ensure this, pass a line-item-veto.
4. Emergency spending needs reformed; again eliminate unnecessary and unrelated expenses. The emergency funding should be offset by cuts in other programs, not by raising taxes.
5. Protecting private property rights through eminent domain reform is also very important to a prosperous and free Pennsylvania/America.
6. Social Security is an issue and will not take care of itself; the government needs to secure the Social Security system for future generations.
7. Keep the Internet free of unnecessary regulation and taxes.
8. Welfare is an important program that needs fixed, not by raising the minimum wage or throwing more money at the problem. True reform requires job creation and growth so the people on welfare can work. Also, those people on welfare should be required to do something for that welfare check rather than serve no purpose to the community.
9. Border Control is important to keep the proper flow of immigrants into the United States.
10. Support the military, not just financially, but with your actions and words used at all times. It is fine to disagree with the deployment of troops, however, once there, they need support from all government officials and all citizens of the United States.
You have been given the responsibility to help govern the greatest nation in the world, please act responsibly and patriotically throughout your term.
Congratulations on your win in the recent election! Pennsylvania and America needs a responsible government; one that will not waste its resources. We need reform, not just business or politics as usual. Below are several areas the government needs to review at all levels.
1. Budget Reform – stop wasteful spending, corporate subsidies and eliminate other unnecessary expenses and programs.
2. Lower taxes for businesses and households. Make the tax cuts permanent. This will require budget cuts and eliminating programs.
3. Bills that are created and passed should have no unnecessary earmarks or other riders attached which are not related to the bill. To ensure this, pass a line-item-veto.
4. Emergency spending needs reformed; again eliminate unnecessary and unrelated expenses. The emergency funding should be offset by cuts in other programs, not by raising taxes.
5. Protecting private property rights through eminent domain reform is also very important to a prosperous and free Pennsylvania/America.
6. Social Security is an issue and will not take care of itself; the government needs to secure the Social Security system for future generations.
7. Keep the Internet free of unnecessary regulation and taxes.
8. Welfare is an important program that needs fixed, not by raising the minimum wage or throwing more money at the problem. True reform requires job creation and growth so the people on welfare can work. Also, those people on welfare should be required to do something for that welfare check rather than serve no purpose to the community.
9. Border Control is important to keep the proper flow of immigrants into the United States.
10. Support the military, not just financially, but with your actions and words used at all times. It is fine to disagree with the deployment of troops, however, once there, they need support from all government officials and all citizens of the United States.
You have been given the responsibility to help govern the greatest nation in the world, please act responsibly and patriotically throughout your term.
September 22, 2006
Back in Action for more Minimum Wage Info!
The summer is over and as the nights and days get colder outside, it is time to stop working on Doe Valley and time to start solving the world’s problems again. So after a few months of physical work, the mental work has begun again.
I want to continue on with my previous post about raising the minimum wage in Pennsylvania. As you may or may not know, PA did pass the increase in minimum wage bill. The minimum wage will increase to $6.25 an hour on January 1, 2007 and will increase to $7.15 an hour on July 1, 2007.
As stated in my previous post (see Minimum Wage Increase in PA, February 16, 2006), raising the minimum wage in Pennsylvania will hurt those workers that need the jobs and the money the most.
An article, written by staff writer Harry Evans, was published in “the Advocate” (Volume 78, Issue 2 – September 20, 2006), the student newspaper of the University of Pittsburgh at Johnstown regarding the minimum wage. According to the article there is about an 8% to 10% decline in the jobs that are available due to the minimum wage increase.
What have we learned? Again, please review the February 16, 2006 post for more information, but the laws of supply and demand hold true. Wages are to increase by 20% and jobs have already decreased by 10% in this example.
Eventually, prices of goods and services will rise to cover the cost of the increase in minimum wage, even in non-minimum wage positions. This is partially due to the spill over effect. For example, there are many people that are currently making more than minimum wage, however, when the minimum wage increases, the employer will probably need to increase the wages of those people in order to keep the workers from leaving for another (now) minimum wage position.
Many school districts are faced with the same problem. Many aides work during the 9- month school year for wages slightly above the current minimum wage of $5.15, however, they get to enjoy excellent year long healthcare and retirement benefits. What will happen to them? School districts are non-profit organizations. They get their money from the government, which gets its money from taxing the people (in particular property taxes). The school districts are left with few options. They are required to pay the new minimum wage, so that will increase their costs. The only way to cover these increased costs is to either raises taxes (which is now limited by Act 1) or cut costs. What is the biggest cost to a school district (as well as most organizations)? Salaries and benefits! The school districts will be forced to not hiring as many people or cut benefits to people or cut positions. However, there is another catch! Certain state and federal mandates limit class size or they are proposing to limit class size. So they can’t get rid of people, now they must cut benefits. Once this occurs, many staff people will no longer be interested in working for low pay and low benefits in a 9-month position. The school districts will be forced to hire less qualified and possibly less enthusiastic or desirable workers. This situation is not good for the school districts, the students or the future of Pennsylvania!
But, I digress. I have been informally observing the price of several select products (bread, doughnuts, and pizza for example). There has already been a slight increase in the price of those products. I would expect when the minimum wage goes into effect we will see more slight increases in those products.
Do you think the price of gas in PA is still too high, even though it has dropped about 40 cents per gallon in the past few weeks? Wait until the gas attendants, which are usually minimum wage positions or slightly above minimum wage, get a 20% raise in January and then another 15% raise in July! Obviously, this will cause the gas stations to occur higher costs. Do you think they will just absorb the cost or pass it on to the consumers?
It will be interesting to see how this all plays out. I truly believe this was simply a ploy for the politicians to get reelected this November. In all likelihood, the federal government will be raising the minimum wage to $7.15 an hour, negating the PA increase and leveling the playing field among other states. But by that time, the PA politicians will have been reelected and will probably only be focused on raising their own wages!
Just remember, you read it here first!
I want to continue on with my previous post about raising the minimum wage in Pennsylvania. As you may or may not know, PA did pass the increase in minimum wage bill. The minimum wage will increase to $6.25 an hour on January 1, 2007 and will increase to $7.15 an hour on July 1, 2007.
As stated in my previous post (see Minimum Wage Increase in PA, February 16, 2006), raising the minimum wage in Pennsylvania will hurt those workers that need the jobs and the money the most.
An article, written by staff writer Harry Evans, was published in “the Advocate” (Volume 78, Issue 2 – September 20, 2006), the student newspaper of the University of Pittsburgh at Johnstown regarding the minimum wage. According to the article there is about an 8% to 10% decline in the jobs that are available due to the minimum wage increase.
What have we learned? Again, please review the February 16, 2006 post for more information, but the laws of supply and demand hold true. Wages are to increase by 20% and jobs have already decreased by 10% in this example.
Eventually, prices of goods and services will rise to cover the cost of the increase in minimum wage, even in non-minimum wage positions. This is partially due to the spill over effect. For example, there are many people that are currently making more than minimum wage, however, when the minimum wage increases, the employer will probably need to increase the wages of those people in order to keep the workers from leaving for another (now) minimum wage position.
Many school districts are faced with the same problem. Many aides work during the 9- month school year for wages slightly above the current minimum wage of $5.15, however, they get to enjoy excellent year long healthcare and retirement benefits. What will happen to them? School districts are non-profit organizations. They get their money from the government, which gets its money from taxing the people (in particular property taxes). The school districts are left with few options. They are required to pay the new minimum wage, so that will increase their costs. The only way to cover these increased costs is to either raises taxes (which is now limited by Act 1) or cut costs. What is the biggest cost to a school district (as well as most organizations)? Salaries and benefits! The school districts will be forced to not hiring as many people or cut benefits to people or cut positions. However, there is another catch! Certain state and federal mandates limit class size or they are proposing to limit class size. So they can’t get rid of people, now they must cut benefits. Once this occurs, many staff people will no longer be interested in working for low pay and low benefits in a 9-month position. The school districts will be forced to hire less qualified and possibly less enthusiastic or desirable workers. This situation is not good for the school districts, the students or the future of Pennsylvania!
But, I digress. I have been informally observing the price of several select products (bread, doughnuts, and pizza for example). There has already been a slight increase in the price of those products. I would expect when the minimum wage goes into effect we will see more slight increases in those products.
Do you think the price of gas in PA is still too high, even though it has dropped about 40 cents per gallon in the past few weeks? Wait until the gas attendants, which are usually minimum wage positions or slightly above minimum wage, get a 20% raise in January and then another 15% raise in July! Obviously, this will cause the gas stations to occur higher costs. Do you think they will just absorb the cost or pass it on to the consumers?
It will be interesting to see how this all plays out. I truly believe this was simply a ploy for the politicians to get reelected this November. In all likelihood, the federal government will be raising the minimum wage to $7.15 an hour, negating the PA increase and leveling the playing field among other states. But by that time, the PA politicians will have been reelected and will probably only be focused on raising their own wages!
Just remember, you read it here first!
May 15, 2006
Oil Company or Consumer Greed?
Every so often I get an e-mail that goes something like, fight back against the biggest oil company, Exxon Mobil, don’t buy their gas next Monday or don’t buy their gas until they lower their price.
Gas is simply supply and demand. Yes, there are only a few oil companies (oligopoly), but they do not control prices. If they did, that would be a violation of anti-trust laws and they would (should) be in big trouble. OPEC on the other hand does impose quota’s on the amount of oil that it ships, however, the members of the OPEC organization routinely ignore those quotes and export more oil than they are technically authorized to export.
If OPEC exported more oil, would the price of gas in the U.S. drop? Probably, but demand would pick up, thereby decreasing the rate of drop in the price of gas, then stabilizing and then increasing as the U.S. (and world) demands more and more (consumer greed).
Yes, the oil companies made record profits last year and billions of dollars profit so far this year (greed). They have also received billions of dollars in tax cuts, but the government has not lost any tax revenue. How is this possible? The oil companies get their taxes cut, but the consumer gets their taxes raised. The government needs to eliminate those tax breaks that the oil companies received and eliminate/reduce the taxes the consumer has to pay. The price of gas is still market driven, so the price of gas for the consumer will drop (elimination or reduction of the tax) and the profit of the oil company will also drop due to higher (normal) taxes.
Yes, I know this scenario is very unlikely to happen because the oil companies are big supporters of political campaigns and are intense lobbyists. There are also many environmental restrictions that have been put into place by the other extreme liberal activists. They too play a part in increasing the cost of oil and doing business.
But what else can we do? If you have no control of the supply aspect, then we must focus on demand.
Drive by your local high school and check out the student parking lot. I’ll bet it is full. Wait! Don’t I pay school taxes to have busses pick up kids and take them to school? After you are done checking out the high school, sit back and watch some traffic. Count the number of fuel inefficient vehicles (SUV’s, giant monster trucks, etc) that only have one person in them. Then after school or on the weekends, listen for the A.T.V.’s out joy riding. Or else drive by your local racetrack; just be careful the fumes do not overwhelm you.
So what can we do to reduce demand without drastically reducing out lifestyle?
1. Have your kids ride the bus to school and only drive when absolutely necessary.
2. Don’t buy/drive ridiculously large vehicles, just because you like them.
3. Reduce your ATV joy riding. Buy a mountain bike. Ride the bike 5 hours a week and ride your ATV 2 hours a week or something.
4. Instead of running the kids all over town for dance lessons, softball practice, swimming, and karate. Stay home and play a game or catch some lightning bugs.
5. Make one day of trips instead of little trips everyday.
6. Walk to the restaurant at lunchtime.
So, are the oil companies greedy? Sure. Are consumers greedy as well? You bet! If everyone gives a little we will gain a lot! By the way, among developed nations the United States still has the lowest gas prices in the world! We are lucky!
Gas is simply supply and demand. Yes, there are only a few oil companies (oligopoly), but they do not control prices. If they did, that would be a violation of anti-trust laws and they would (should) be in big trouble. OPEC on the other hand does impose quota’s on the amount of oil that it ships, however, the members of the OPEC organization routinely ignore those quotes and export more oil than they are technically authorized to export.
If OPEC exported more oil, would the price of gas in the U.S. drop? Probably, but demand would pick up, thereby decreasing the rate of drop in the price of gas, then stabilizing and then increasing as the U.S. (and world) demands more and more (consumer greed).
Yes, the oil companies made record profits last year and billions of dollars profit so far this year (greed). They have also received billions of dollars in tax cuts, but the government has not lost any tax revenue. How is this possible? The oil companies get their taxes cut, but the consumer gets their taxes raised. The government needs to eliminate those tax breaks that the oil companies received and eliminate/reduce the taxes the consumer has to pay. The price of gas is still market driven, so the price of gas for the consumer will drop (elimination or reduction of the tax) and the profit of the oil company will also drop due to higher (normal) taxes.
Yes, I know this scenario is very unlikely to happen because the oil companies are big supporters of political campaigns and are intense lobbyists. There are also many environmental restrictions that have been put into place by the other extreme liberal activists. They too play a part in increasing the cost of oil and doing business.
But what else can we do? If you have no control of the supply aspect, then we must focus on demand.
Drive by your local high school and check out the student parking lot. I’ll bet it is full. Wait! Don’t I pay school taxes to have busses pick up kids and take them to school? After you are done checking out the high school, sit back and watch some traffic. Count the number of fuel inefficient vehicles (SUV’s, giant monster trucks, etc) that only have one person in them. Then after school or on the weekends, listen for the A.T.V.’s out joy riding. Or else drive by your local racetrack; just be careful the fumes do not overwhelm you.
So what can we do to reduce demand without drastically reducing out lifestyle?
1. Have your kids ride the bus to school and only drive when absolutely necessary.
2. Don’t buy/drive ridiculously large vehicles, just because you like them.
3. Reduce your ATV joy riding. Buy a mountain bike. Ride the bike 5 hours a week and ride your ATV 2 hours a week or something.
4. Instead of running the kids all over town for dance lessons, softball practice, swimming, and karate. Stay home and play a game or catch some lightning bugs.
5. Make one day of trips instead of little trips everyday.
6. Walk to the restaurant at lunchtime.
So, are the oil companies greedy? Sure. Are consumers greedy as well? You bet! If everyone gives a little we will gain a lot! By the way, among developed nations the United States still has the lowest gas prices in the world! We are lucky!
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