Personal spending rose 0.5 percent in February while incomes rose a less-than-expected 0.3 percent, the Commerce Department said today in Washington. The Labor Department said today the number of Americans seeking first-time jobless benefits jumped in the last weekly tally before tomorrow’s monthly jobs report.
Again spending rose faster than savings. This is great for Keynesians, but in the real world this retards growth and weakens are international position. Americans are literally selling out the future at steep discounts. A consumption tax would punish spendin, not earnings and not savings, and give us a sustainable economy.
Likewise, isn’t it great being a hostage to the Middle East?
Crude oil rose and gasoline and heating-oil surged to records on signs that U.S. refineries lack capacity to make enough fuel and Goldman Sachs Group Inc. analysts predicted that oil could touch $105 a barrel.
“It’s equally likely that oil will touch $105 or $15 a barrel,” said Jason Schenker, an analyst with Wachovia Corp. in Charlotte. “It’s not going to $105 without a major cataclysmic terrorist attack on significant oil infrastructure. It’s not a rational expectation.”
A geogreen strategy would take pain today, in the form of consumption taxes on oil, to avoid this randomness tomorrow. Oil revenue makes bad regimes horrible and fair regimes crooked. The oil system is lose-lose.
So we have two bits of bad news. Why not combine them?
Record prices have failed to curtail surging fuel consumption, the Goldman Sachs analysts said in a research note. The firm’s upper limit was $80 previously. U.S. supplies of gasoline and distillate fuels, such as diesel and heating oil, fell last week, according to an Energy Department report yesterday.
Great. We need a step enough oil tax to divert the excess revenue out of sheik’s pockets. If it would go to the treasury, fine. If it would go to a special fund, fine. But we cannot keep this us.