Economics for dummies

Why a budget surplus is a good thing:

The House also recommends using only about $220 million from the state's $1.2 billion "rainy day" cash reserves to cushion the projected revenue shortfall on the current budget. Kaine had initially recommended about $261 million, but increased it last week to $423 million.

With "hard times" forthcoming ahead of an economic slow down within our state after the extraordinary growth over the past few years, isn't it nice to have the "luxury" of being able to rely on such a large supply of cash reserves thanks to the responsibility of Governor Warner? Who, much to the dismay of many on the right, was intelligent enough to realize that enormous economic growth does not continue forever, but rather in (generally natural) "peaks and valleys" and that we would need to rely on our "rainy day fund" eventually.

Next time those of you who have a conniption and begin hollering for a "refund" of "your" money every time the government is running a surplus, remember this!

Gas prices hit yet another record high today

For the third straight week, gas inventories are up, but guess what! For the eleventh straight day, gas prices in the U.S. are at a record high! Costing American drivers an extra $20 BILLION so far this year.

The jump in U.S. gasoline prices this year has so far drained consumers of an extra $20 billion, or about $146 for each passenger car in the country, the Government Accountability Office told Congress on Tuesday.

The national price for regular unleaded gasoline hit a record $3.22 a gallon this week, and is up $1.05 since the beginning of February, according to the Energy Department.

As mentioned, gasoline inventory is on the rise, according a government report due out later today, and in turn, oil prices are dropping.

Oil prices fell Wednesday on expectations that a weekly U.S. government report to be released later in the day would show the third increase in domestic gasoline stocks in as many weeks.

Gasoline stocks were expected to grow by an average of 800,000 barrels, according to a Dow Jones Newswires poll of analysts. Crude oil supplies were forecast to drop by 200,000 barrels, and distillate stocks, which include heating oil and diesel fuel, were expected to increase by an average of 900,000 barrels.

So why the hell are we continuing to see gas prices climb day, after day?