Jessica Mondillo’s Blog


Category Archive

The following is a list of all entries from the Money category.

Cash for Clunkers not Good for Everyone

13 August 2009

Cash for clunkers may be helping some people, but overall it seems like it may be hurting another group of people more than it helps.

On my local news, car mechanics were talking about the effect of the program on them.  The mechanics interviewed repeated the same sentiment: the program is hurting their business even more than the poor economy is.  People who had some extra money, but not enough to buy a new car without the program, would have spent the money to repair their cars.  Now these people are buying new cars and the car mechanics are losing the few clients that they may have had during these tough economic times.

Another problem the news didn’t mention comes for people who cannot afford a new car, even with the rebate.  These people may have been able to buy a $2,000.00 used car from a private seller if they needed to before.  Now, at least in my area, many used cars prices from dealers or private parties have raised to a minimum of around $4,500.  People who have been more deeply affected by the recession may not be able to afford these higher prices when they are already just barely getting by.

Currently, cash for clunkers helps the wealthy and upper middle class be able to afford a new car while money is tight.  It does not help lower middle class people who are closer to the poverty line or those who are below the poverty line.

An idea I have heard that has a great deal of merit is that the cars should be repaired to give to poorer people who cannot afford a used or new car.  This has a couple of benefits.  Not only do people in need of a new car, like unemployed people, people living below the poverty, or those on welfare, get a running car, if the government paid for local mechanics to repair the cars, the hurting industry would get some assistance and hopefully stop these smaller businesses from closing and thus more people becoming unemployed.  Instead the current program just destroys the cars.

Advertisements

Recession? Yes, But Technically No

03 March 2008

According to an article on AOL News, Warren Buffet claims the US is in recession, even though the conditions of a recession are not met. Buffet commented that, “by any commonsense definition, we are in a recession.”

Although the US had not had two consecutive quarters with negative growth, most companies’ sales have been slowly declining. Companies like Ford, Toyota and GM have all had a decrease in car sales recently.

I agree with Buffet that by a commonsense definition, the economy is in a recession.

Last semester I had to read the Wall Street Journal everyday. After a few weeks, or even days, of that you know the state of the US economy. One article near Christmas time told of a family that would not be buying any Christmas gifts (even though they normally did) in order to keep a roof over their head. More articles focused on the price of oil and how that would effect heating a home and the price to travel. The majority of articles talked about the sub prime mortgage crisis and the number of houses being foreclosed.

AOL also has recently had some economic related articles. One discussed how more people were cutting back on luxury spending and opting to cut costs out of their everyday routine.

With all of that information, I’d say the US is in a recession, or at least the start of one. People will stop buying luxuries, because they cannot afford them. People will stick onto old cars longer, because new ones are expensive and their old ones still work.

I go to gun shows with my dad, and when I was younger the amount of sales was much higher than it is now. Fewer people come to the show and even fewer have money to spend. My dad also sells on eBay. When he started two or three years ago the number of orders he received was higher than the number of orders he currently receives.

Using a strict economic definition, the US is not in a recession. But my commonsense says that the US is in the beginning of a recession regardless of what the numbers says.

Please visit this post at my other blog.  Thanks!


The Big Dig-It Keeps Going… And Going… And Going…

03 March 2008

Over a year ago the Big Dig (I-93) opened and I thought the project was FINALLY over, years over due and well over budget. Apparently, I was wrong. Today the Boston Globe announced that there is a to-do list of over 2,000 items left to finish and no completion date set.

In addition to the to-do list, the US government filed charges against McCourt Construction Company for over billing. This is the second time charges have been brought against McCourt for conspiracy to defraud the government during highway projects.

In my opinion this has been going on way too long. Both the US and Massachusetts governments have been paying for this project for years and nothing was done properly. Tax payers in Massachusetts do not even seem concerned that their money has been thrown away—a sign that the project has been going on for far too long.

The Big Dig may have been completed but it has never been safe. First it flooded. Then part of the roof collapsed. Both of these things happened around the time the tunnel was opened. If you buy a product and it is damaged from the time you get it, you return it and don’t have to pay for it.

Why were billions spent on a failure? Pumps often have to be running in the tunnel to keep it from flooding and who is paying for the problem? Taxpayers. Not the people who built the faulty tunnel.

If the tunnel collapses from all the outside pressure, who would people blame? Most likely, the state.

Taxpayers, especially those in Massachusetts, got stuck with a faulty product and an inflated bill but almost nothing is being done to rectify that. This problem has been going on for more than 10 years and looks like it could continue for another five. Why aren’t the government and taxpayers taking more of a stand for their rights as a consumer?

Please visit my post on my other blog and help me earn scholarship money.


$0.33 Gas. Were the buyers greedy or smart?

13 December 2007 

At the Trig’s Minocqua Shell gas station in Wisconsin, gas was mistakenly priced at $0.33 a gallon on December 9th.  IN less than two hours, 586 gallons of gas were bought by 42 customers.  The manager and owner are upset that people would take advantage of an employee’s mistake of putting the price at $0.33 instead of $3.30 a gallon.  The business lost over $1700 dollars.

The manager is upset and feels that the consumers were being dishonest by buying the gas at a price that they knew was wrong.

Personally, I do not think the consumers were wrong to buy the gas.  It is the responsibility of a business to correctly price their product.  I do feel bad for the owner since it was a mistake on the part of their employee but the customers paid the marked price.

And how is a consumer suppose to know if a price is correct?  Yes, $0.33 for a gallon of gas is cheap, but many gas stations put their gas at very low prices to get publicity, and thus MORE business.

I don’t think these consumers were being greedy, they were being smart shoppers and should not feel obligated to reimburse the station for lost money.  The employee who put up the wrong price is the one responsible for this business’s loss, not the consumers.


Tea Party ’07 Ron Paul Fundraiser

10 December 2007 

Have you heard of Tea Party 07?  It’s a Ron Paul fundraiser which is trying to create Ron Paul’s biggest fund raising day yet.  In memory of the Boston Tea Party which took place on December 16, 1773, supporters have started a fund raising effort in which they are trying to get 100,000 people to each donate $100 in order to raise $10,000,000 in one day.

In addition to that Ron Paul is having a rally starting at the State House and will end with a reenactment.  This is a great cause and Sunday people should donate whatever they can to help Ron Paul create a revolution.

Also, this proves a point I have already proved in one of my earlier posts.  Like the fundraiser on Guy Fawkes day, this fundraiser was designed by an outside support group.  I personally feels that the proves that the fundraiser on Guy Fawkes Day was not an act promoting terrorism but of a symbolic meaning; the overthrowing of an oppressive government.

The link to the fundraiser/event website is: teaparty07.com


Ron Paul:People are now paying attention to him

October 29, 2007

On the front page of WordPress I just saw something very exciting!  GOP leaders and the media are starting to take Ron Paul very seriously.  I am glad.  Some people have probably never heard of Ron Paul.  He is a Republican running for president.

He may not be well known, but he is good at raising money.  He currently has about $5 million to spend on his campaign.  Personally, I would love the US in the hands of Ron Paul for the next four or, even better, eight years.

I first heard of Ron Paul, out at the national matches in July at Camp Perry, Ohio.  I was shocked since many businesses will not publicly support a candidate for fear of controversy, especially so early in a race.  But I was reading his brochure and web site.

Not only is he for reducing the government size (which will save US tax payers money), he is pro gun.  No matter what they say, Giuliani and Romney will never be truly pro gun.

I’m glad someone is finally noticing that Ron Paul may not be a wealthy candidate, but he has a lot of support from AMERICAN CITIZENS.  Just remember when you go out and vote, you’re not throwing your vote away by trying to elect Ron Paul.  You do have a say (no matter what you think) and Ron Paul may be the change we have been looking for in America.

By the way the article I first saw was at: http://mvdg.wordpress.com/2007/10/28/gop-state-leaders-are-beginning-to-take-ron-paul-seriously/


Hillary Clinton’s $5,000 Baby Bond

Originally posted on September 29, 2007.

Last night Hillary Clinton proposed this plan to give EVERY baby born in America $5,000 to use anyway they want at age 18.

As reported on CNN.com, Clinton said, “I like the idea of giving every baby born in America a $5,000 account that will grow over time, so that when that young person turns 18 if they have finished high school they will be able to access it to go to college or maybe they will be able to make that downpayment on their first home.”

I just recently turned 18 and I agree, it would be very nice of the government to give me over $5,000 dollars to spend however I wanted.  But where is this money going to come from?  Clinton never said.  Like everything else the government pays, the money will be added to the national debt and will be paid for by the tax dollars of AMERICANS!

Now let’s do the yearly math for Hillary Clinton’s plan.  There are approximately 4 million babies born each year in the US.  So 4 million babies each get $5,000.   That will be an additional $20,000,000,000 a YEAR.  20 billion dollars a year. 

Clinton also makes it wound like the money will be growing in an account.  If so I would like to know who is managing the account?  If the government manages it, that will bring forth more federal jobs and thus more bills.  If parents manage it, then they are footing the bill to manage money the government gave to their children. 

If this plan passes, word of it will surely spread to other countries.  Already America has illegal immigrants coming to the country to get free hand outs.  This plan will encourage aliens who have no loyalty to America to come here so their children will get FREE money from a system that they do not have to support.  And when families that have drug addict parents find out how to get the money before the child turns 18, it will be spent towards illegal drugs and never reach the hands of the child it was intended for.

CNN reports that Ohio Representative Stephanie Stubbs Jones said, “I think it’s a wonderful idea.  Every child born in the United States today owes $27,000 on the national debt, why not let them come get $5,000 to grow until their 18?”

Representative Jones does not mention how much the national debt will increase with this plan.  She says how much each child will owe to the national debt, but the money for baby bonds and the bills the government makes every year.

If this bill passes, those of us born after the baby boomers will be paying into a social security system that we will never collect from and for people to have babies, something else that we will never benefit greatly from.

DOESN’T THIS OUTRAGE ANYONE?  Your money is going to be given away and never benefit you.

Apparently Hillary Clinton, like so many other politicians, is willing to spend BILLIONS of AMERICAS tax dollars to win their campaign.  After all, the average Americans that she will hurt will win her plenty of votes from the people that are just looking for a free handout.

This is a repost of my sdcody.wordpress.com post.