Oil Spill in the Gulf of Mexico

The explosion of the oil platform leased by British Petroleum in the Gulf of Mexico and the resultant oil spill of 5,000 barrels of oil per day will soon exceed the environmental damage caused by the Exxon Valdez in Prince William Sound, Alaska, March 24, 1989.  The recent oil spill is a significant environmental disaster.  With the changes taking place on planet Earth, more man-made environmental disasters are one more element we don't need.

President Barack Obama has cleared the way for more access to oil reserves in the Gulf of Mexico while, at the same time, authorizing more research into alternative sources of energy.  We may have the technology to drill for oil, though not sufficient technology to control unexpected consequences of the process.

The economic impact of the newest oil spill on the economy of the Gulf of Mexico from Florida to Texas has not even begun to make itself felt.  Worst of all, the oil spill continues to grow and to spread.

We need to keep focused on measures we can take to make a smaller, less negative, environmental "footprint" (impact) on our planet.  I love the Gulf beaches in Florida and will hate to see them looking like the tar sand beaches in California and Canada.

The Emperor's New Clothes--Insight into the "New Economy"

The media says that there are many current signs of economic progress, low inflation, more jobs being created, people spending, the DOW Jones moving to over 11,000.  At the same time nation-wide unemployment remains at about 9.7%. (This is an artificial figure because it represents people actually claiming unemployment benefits.  When people exhaust their benefits or, after a year or more of not finding jobs, apply for Social Security or take a lower-paying job, they drop off the rolls of the unemployed.)

Recently I have encountered many people hired to work on the Census 2010.  Almost all of them are looking (and have been looking) for work and have been unable to find it.  It is good that the census gives them a temporary ("intermittent") job--similar to a substitute teacher, working when there is work to be done.

Hans Christian Andersen created a story about The Emperor's New Clothes.  A child looked at the emperor and said, ". . . but he isn't wearing anything."  The "new economy" (and economics in general and the current economic recovery in particular) is a lot like "the emperor's new clothes."  There is a lot of trust involved and everyone needs to see and believe in the same way for it to continue to operate.

There are a lot of reality checks that act like the child.  The FDIC is anticipating more bank failures this year.  Homes are still being foreclosed.  Many people are looking for work to replace incomes they used to have when, for whatever reason, they were laid off.  States are hurting for income because people haven't made enough money to pay what they used to pay in taxes.

Is this a pessimistic post?  I believe in seeing the glass "half full" rather than "half empty."  At the same time, if the glass is half full, it's important not to claim that the glass (or gas tank) entirely full and to expect to "go the distance" a full glass (or gas tank) would allow.