Economic Outlook: July 2008 Archives

Interesting story today in the New York Times about how many companies are cutting worker hours rather than cutting workers with outright layoffs.

The reasons? Employers have to pay fewer health care costs for part-timers. And, computer skills of all things are a huge factor.

Stringing people along with a little bit of a job keeps them available to come back to work if/when times get better, and it works better for a company because then they don't have to train a brand new hire in advanced and/or company-specific computer skills.

You have to read kinda deep into the story to find that and other good "why" info.

The computer skills reason might sound like something for just the high-tech sector to consider at first, but I know even the cash register at the local diner would confuse me for awhile. (It's a computer, too, most likely).

A lot of people already complain about the lack of a "living" wage in America. Particularly in York County, it comes in the form of higher-paying manufacturing jobs leaving, with lower-paying retail jobs becoming an alternative.

Do you know anyone who has had hours slashed because of the economy? Is it better or worse for employees to get hour reductions as opposed to just getting let go?

For what they need in emergencies, that's all they're using the credit car for, according to this story.

Which is actually a really bad sign for U.S. retailers, because who has shopped with cash (other than old-fashioned people like me) in the last decade?

Heck, I never had an actual credit card until I got married and started playing the whole "building credit" game, and when I told people I didn't have a credit card (like the people at car rental places who require one) they would look at me like I had roaches in my ears.

Anyhow, basically people seem to be stopping their credit card worship. And no credit card = no frivolous purchases = there goes the driver of the American economy.

Worried anyone?

A little more on the Catholic Church's stance on the environment, in the form of modern-day vices.

And please also check out the monologue from the blogger on the ethics questions that often get overshadowed by the endless science discussions. I think this is a really good take on the issue.

It worked. I can't believe that it work. Earlier this year, through the York County Assessment Office, I applied for tax payer relief through the Homestead Exclusion program. Basically, the program offers a reduction in real estate taxes in the form of a lower property assessment. And, I was approved. My house is now assessed at $10,000 less than what I paid for it in 2005. This year, on my school taxes, I saved about $200. Not bad for someone who doesn't have any children and wonders why his school tax bill is so high. The assessment office usually mails out Homestead Exclusion forms to all local homeowners. Next year, fill out the form and save some cash.

$3.89! $3.89! $3.89!

I figured for sure it would get over the $4 hurdle this time around, but gas prices are falling pretty quickly this week. I watched a pretty steady price of $3.95, down a few from that $3.99 high, dwindle to $3.92 and now to $3.89 this morning.

Thank goodness gasoline is cheap again. Finally, I can get back to my All-American to-do list! I thought we were all in trouble there for a sec.

1. Buy a house 75 miles from my job with no money down, on a plot of land that was producing food this time last year ...

2. Get that extra credit card so we can finally afford to go out to a nice dinner on Friday and Saturday nights ...

3. Cancel that order for a Prius. That thing looks like a shipping box after a disgruntled employee vented his or her aggression anyhow. I hear Hummers are pretty cheap nowadays ...

And lastly, 4. Do something even bigger and better than 1, 2 and 3 within six months of accomplishing to-do list items 1,2 and 3.

Viva Pax Americana!

Wachovia posted massive losses in the second quarter. We're talking in the ballpark of $8.9 billion.

The bank reported losing about $4.20 per share. This time last year it earned $1.22 per share.

Interesting story about people rallying around their Starbucks locations in today's Wall Street Journal.

I'm not too surprised to hear about it. After all, if you mess with someone's morning cup of coffee, you've hit a huge nerve. And when you hit a nerve that early in the morning, there are a lot of waking hours left in the day to stew and get even more angry.

Has anyone heard about such an outcry for the company's North Hanover store, which was on the company's list of 600 stores to close?

Another work week has come and gone and here's your round up of the latest and greatest business stories of the week.

If you haven't check out our week-long DUI special, you'll want to catch up on the coverage here.

Harley-Davidson and Johnson Controls released their earnings reports.

McDonald's gets a facelift.

Americans less fishy.

Environmentalists sue the EPA???

And for fun, here's the ad campaign I'm currently obsessed with:

In terms of gasoline prices, I've found that how much you pay has a lot to do where you pump. Last week, my wife and I drove to Roanoke, Va. for a week-long vacation. On the day that we headed back to York County, I had to fill my tank. The gas station near Interstate-81 sold regular gas for $4.15 a gallon. Two miles headed in the opposite direction of I-81, gas was selling for $3.82 a gallon. It seems that gas suppliers are taking advantage of those who need fuel immediately. Have you noticed any discrepancies in price in relation to the location of particular gas station?

That phrase, whether said or thought, has probably gone through a lot of people's heads over the last few months.

"I could stop driving to see family so often ... but I can't do that."

"I could give up going out on a Saturday night with friends ... but I can't do that."

"I could stop eating a meal every day ... but I can't do that."

What have you come up with to save money, but then decided you couldn't live without?

Gas is $5 in some places

- Brent M. Burkey (July 15, 2008 9:33 AM)

I've been watching gas prices elsewhere in the country and heard about gas nearing $5 in California from my brother-in-law. But this picture was unnerving.

Anyone want to guess when we'll see something like that? Or even when we'll see the local gas stations stop holding the line at $3.99 9/10, or a little lower in some places? It's got to be hurting them, as oil prices have gone up a good bit since $3.99 gas hit.

It's kind of a "no-duh" idea: Depending on where you drill for oil, it's going to be more or less expensive to get out of the ground. Obviously, drilling on land in Texas is less costly than drilling on an ocean floor in the Gulf of Mexico covered by several hundred feet of water.

But exactly how much of a difference is there, and what does that mean for our gas prices today?

With oil prices falling, Iran decided to launch its missiles ... in a military test.

But that was all it took to start the price of oil rising again. It made people worry about the security of oil flowing from the Middle East.

Those missiles didn't kill anyone, but they managed to inflict a little bit of pain on the millions or even billions of oil-addicted people in developed or developing nations across the world, including 300 million Americans.

Talk about a smart weapon!

The price for a barrel of oil is slipping back a bit, so hopefully gas prices will follow.

The big question is, if gas prices start to fall, will it be back to driving as usual for you or will the trying to drive less continue?

A barrel of oil has hit $145 and several gas stations in the area have started selling gasoline for $3.99 a gallon, again. In the last two weeks, many stations dropped there prices to around $3.95 per gallon. So, what's it going to be? Are local stations going to hold the line until the July 4 weekend is over to boost prices or am I going to see $4.05 per gallon on way to the lake tomorrow morning?

Kathy Wallick of North York has won Rutter's "Fuel up Free!" gas give away. The contest awards free gas for three years. Wallick is expected to save $130 a month in gas. Three more Rutter's customers will win free gas when Rutter's names its three remaining grand prize winners July 14, Aug. 4 and Sept. 15.