Where is the US economy headed?

Well, we know it's not caused by behaviors on the part of the parents, or the social situation of the child. Extensive research has proven this. I agree that we are diagnosing as 'autism' things that were called other names back in your day, so I don't know if it's truly increasing in prevalence or we're just calling it that more often.



Autism is a Pervasive developmental disorder; it affects learning, behavior, and social interaction. It's really a huge problem for the kids and families involved.



It's not as prevalent as problems caused by social issues or traumatic events, but it's a real issue, because these kids - you can't reason with them or help them get better the way a normal kid can. They are wired differently. I think my wife is a really special person, she has a wonderful ability to connect with these kids and teach them to control their emotions. She (we) went pretty heavily into debt so she could continue to help these kids as much as possible (though we will profit from the debt eventually).

I don't actually disagree with you that our current social problems are causing big issues in schools, and a big part of that is the collapse of the traditional family structure. These are thorny issues and it's not at all clear how to help solve them.

Returning to economics, none of this would be possible if we hadn't been willing to enter a prolonged situation of debt accrual. I've worked hard to pay as much as I could over the years towards her schooling, but it's hard to live in the city on one salary and we're still over 100k deep. That's a lot for a young couple! So on one hand, the decision could seem foolish. It may NEVER actually pay itself off. But, I think that it will, and that it was worth it, to give her the chance to do something special.

Our country's situation is similar. We can't run deficits and add to the debt forever; we can't 'tax and spend our way to prosperity' - in the long run. But in the short run, we certainly can. During a financial downturn, the government acts as the nation's credit card or financial aid - providing funds to keep things running until the economy gets back on track itself.

Or, for another example which you might agree with more, think about the war in Iraq and Afghanistan. We didn't HAVE the money to fight either of those wars, so it was either go into debt to fund them, or raise taxes. You may recall that Bush CUT taxes during this time, not raised them - twice. If you don't think that deficit spending or debt are allowable, or lead to a larger goal, would you agree that your taxes should have been raised to cover the cost of those wars?

Cycloptichorn

I was digging around to find out how much of the price at the pump consists of Fed gas tax (18.4 cents per gallon) and how much is state and local (17.5 in VA which is somewhat below the average).
As often happens, that lead me to other articles for an hour or so. I didn't bother to source them for posting here. If this generates any interest in discussion, we can go back and do that.
Here are some bullet points:
> Gas taxes are a fixed cost of a gallon of gas to the consumer. That is, regardless of the price, the Fed tax paid (and collected by the govt) is always 18.4 cents.
> People are, arguably, driving less because of the recession and because young people like (eg) Cyclops are moving into the urban areas. Population growth may offset some of that.
> Cars will become more fuel efficient, getting higher mpg and increasingly switching to other sources (hybrid, electric). They will need fewer gallons of gas.
I hope you are with me so far. It gets a lot more contentious.
> I saw a pie chart suggesting that gas taxes, motor vehicle registrations, tolls and even speeding tickets make up a shrinking percentage of road construction and repair. The govt (fed and local) is likely going to have to increase spending there out of general funds.
> And, I would argue, the govts are seriously underestimating the repair needs of our highway system, particularly the Interstate system. Many of the bridges are now 50 years old.
> Fasten your seat belts for this one. Some are suggesting that folks who use the highways a lot (annual mileage and/or peak time use) should pay more tax then those who use highways less.
> Gasp. The technology exists (as tested by volunteers in Oregon) to tax people based on the metrics in the last sentence. That can be done at the pump.
> That raises issues of Big Brotherism, and the effects it might have on people in rural areas who have to drive a lot of miles.
> There seems to be some anecdotal evidence that people will change their driving behavior (commuting via car vs mass transit; gas fired vs hybrid). But I don't trust much of what I have read on that.
I'm done. Thanks to anyone who managed to read the whole thing.

I read the "whole thing," and would add that those who drive more do pay more in taxes - at the rate you specified. However, the biggest problem with gas usage in the US is that we pay one of the lowest price for gas. I asked Walter what he pays in Germany, and he said "twice" of what we pay. That's the huge difference between the US and most other countries.

Americans have been addicted to their cars, because the US government continued to support the auto industry by a) low gas prices, and b) not providing sufficient public transportation.

At current prices, we have seen more people leaving their cars home and taking public transportation. That's a clue that most levels of government seems to be missing - especially in this economy. Even the plans for the California High Speed Rail System has been delayed years, because of the political conflicts in building it. We needed it ten years ago.

Please ask Walter what the tax on gas is in Germany. We, here, pay about 10%, I estimate.

rjb, Found this on Wiki.


That would make it about $2.56/gallon at current exchange rates.

That leads me to wonder how the various levels of government are going to collect their highway use taxes once electric and hybrids become the rule rather than the exception - if they do. I take it as a given that none are going to give up a reliable stream of income. Maybe we'll end up with our own cars ratting us out to the government, which will send us a periodic tax bill.

In Germany, every Euro you pay at the pump would typically include 50 cents mineral-oil tax plus 16 cents sales tax, for a total of about 2/3 the price. I say "typically" because tax rates differ between fuels. (Diesel is cheaper.) Also, the overall tax rate depends on the before-tax price of fuel, because the mineral-oil tax is raised per liter whereas the sales tax is raised as a percentage of the after-mineral-oil-tax price. Aren't you glad you asked?

Before-tax, gas prices in Germany and America are about the same.

The administration is researching a pay-per-mile system, I believe. There are actually about a half dozen taxes that subsidize the road and highway system. The gas tax counts for about 35%, I think.

That agrees with some stuff I found, Irishk.

From AA Ireland.


According to this recent chart, Germany pays about $8.75/gallon.

Ok lets say you are correct! What is the reason our gas is so much cheaper?

Taxes.
Lobbyists.

Wow I did not know that we are paying close to $5.00 less per gallon than Germany because of taxes!

It's actually a pet peeve of mine about those whiny Americans. Six years ago, when American gas prices first approached three dollars, Squinney started a thread titled "Why do higher gas prices anger you?" I replied that they don't anger me. High gas prices are a good thing, and gas is ridiculously cheap in America anyway. Nobody in this thread was amused at the time. But I stand by what I said even today.

Are you sure? Lobbyist or taxes? Do you think that it could have any thing to do with our "hopefully" fading military industrial complex?

Cheap is not the word. It's being given away actually. Worse--people are being bribed to consume it.

Are there any other truths about reality that you might want to share with us while you are at it?

Not trying to put you down because I find value in what you say "at times" when others do not!

I strive to find value in even those who you think are retarded, stupid, evil, foolish, idiotic and so on and so on!

Follow the money rl. It's not only the first rule of real journalism. It is the only rule. There are no others.

Are you suggesting that I should follow the love of money?

Everybody else is rl. I don't see why you should be the odd man out.