Economy

Link: U.S. Better Prepared for Surging Gas Prices

Summary: Fear of Middle East supply disruption has driven oil prices to over $100 a barrel for the first time in over two years. Economists believe that US consumers are better prepared for the raise in oil prices than they were in 2008 because of more fuel efficient vehicles and industries that rely on oil like trucking and aviation pass the cost directly on to the consumer immediately instead of down the road when profits fall.

Relevance: While talking a lot about the federal budget, taxes, and deficits, it's hard to imagine how with so much money being spent, the economy can be in such bad shape. People just do not buy as much as they used to anymore. But money is still being spent in different places, and taxes are still being collected from those purchases. For example, the federal tax on gasoline is $0.184 per gallon. On average, the United States uses an estimated 388 million gallons of oil per day.  That is $69m per day in taxes collected. The government has a lot to balance on it's plate, and everything we are learning is constantly making it look like a tougher and tougher job. The budget is very complex and extremely vast, but money management must be more well cared for. This is a nation fueled by the desire for money, run on capitalism. When the economy is in ruins, it is not a very nice place to live.

Opinion: Although the government does have a very tough job managing the federal budget, I feel like they could do better. With large amounts of money flowing into the government through taxes everyday, it seems like it shouldn't be difficult to keep the nation out of the red. Maybe we should stop giving tax breaks to those making HUGE sums of money, and tax them according to their income bracket just like everyone else. I feel like the government budget should be run like a perfect household: Little to no debt, except a mortgage, and car payments, and where they don't go after more they can afford. Although this perfect household must sometimes borrow funds for when the car breaks down, or the furnace breaks in the middle of winter, they pay back the debt as soon as possible. The government should follow this model, and the finances of the government could be brilliant.