Does a generous welfare benefit create a work disincentive?

Posted By on July 10, 2014

I listened to a debate on CNBC on Wednesday morning featuring Princeton economics professor Alan Krueger discussing the problems of long term unemployment which lead to Joe Kernen suggesting there are financial disincentives to taking entry level jobs … the kind of work the unemployed need to gain experience. Krueger discounted that people weigh the numbers and choose not to work, but seemed troubled when faced with the financial calculations in some states which heavily favor continuing to accept government handouts and remain unemployed.

CNBC Squawkbox – Alan Krueger and Joe Kernen (mp3) July 9, 2014

It reminded me of a CATO Institute study from 2013 that shocked me: “… in the three most generous states, a person on welfare can take home more money that an entry-level computer programmer.”

catostudy2013

Add taxes to what you would need to make in these states to equal the government support, and your hourly pay would need to match the chart below in order to break even.

catostudywageequiv2013

Service call frustrations and personal rant … deuxième partie

Posted By on July 9, 2014

Cable and phone companies generally get the bad rap for arranging questionable appointments and providing disappointing in-home service. Well a third company is in contention for the top spot: AE Door & Window.

Last week we had another spring break in our garage door (different one) and since we could drive a different car, this was not an “emergency” call.  angrybabyI instead politely called to set up the appointment for Monday, which following a holiday weekend was pushed to Tuesday. The service department took a few detailed notes about which door and even commented that he could see that they were recently out to replace a spring. I chuckled ‘yes’ and then asked if they knew what time on Tuesday and if it would be the same technician. He wasn’t sure … but promised to call on Monday so I could schedule the time off … Déjà Vu.

Then late on Monday I received the call that a service technician would be out to replace the spring between 12 – 5pm Tuesday. Ugh! I asked, “can’t you narrow it down a little more?” No not really … that’s how they schedule, but the technician would call 20 minutes before he arrived. Great … my Tuesday afternoon was shot.

Tuesday … the lunch hour, and then some, passes without a phone call. Finally about 3:30pm the technician calls to ask if he can still come later or if he should re-schedule. “NO, no, no, come tonight” I beg, “come tonight” … I’ve been here all day and don’t want to schedule another day off. He arrived about 6:15pm and looks at the spring and says, “I’m not sure I have that one in the truck.” Huh? Another appointment anyway???

He is going to have the office call to set up another appointment and THEN proceeded to fill out his paperwork bill me for $59! I remained calm externally, but was pretty hot under the collar. I refused to paid … and proceeded to leave the office voicemail machine a “frustrated customer” phone call. What would you do?

Thinking about Volkswagen TDIs again. Thanks Tim! #sarcasm

Posted By on July 8, 2014

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13778950044_55cdb17450Although it may seem as if our garage of family Volkswagens has dwindled in recent years (we’re down to Taylor’s GTI), I’m still thinking “seriously” about the new Golf Sportwagen IF it comes equipped as rumored in early 2015.

kingsvworderHopefully decision-makers are paying close attention to about every VW TDI enthusiast that I know (including the written comments below) and that the new 2.0 TDI diesel will be offered with AWD and a manual 6-speed … although I’d be tempted if the quick shifting DSG had extra gears. Certainly the “more room” is a plus for those of us trying to transition from minivans and SUVs.

BUT … until the new Sportwagen arrives, I’ll have to be content ogling my friend Tim’s “soon to arrive” 2015 Volkswagen Golf TDI. He placed his order yesterday and teased me by including a message showing the purchase agreement. I’ll be anxious to see how it is equipped and how it drives. Hurry up!!

kickingtireslogo

maastrichtian

Apr 11, 2014 11:14:23 AM

I will order one as soon as I can IF I can get this exact configuration: 1. Diesel, 2. AWD, 3. 6spd manual. Current owner of VW Jetta Sportwagen Tdi 6spd manual.

wain

Apr 11, 2014 2:12:46 PM

We currently own Jetta sedan and Golf MK4. the configuration that maastrichtian described will convince us to take the plunge, Best cars ever.

Bon

Apr 11, 2014 2:23:47 PM

I have 2010 tdi cup edition dsg, blue eshmer metallic

issy54

Apr 11, 2014 5:57:50 PM

I’d kinda like an 8 speed DSG.

M3

Apr 11, 2014 8:21:40 PM

Sweet! Might have to trade in the ’13 Beetle on one. Pricing info, please?

Breylan Deal-Eriksen

Apr 12, 2014 7:55:45 PM

YES! When can I order one? And can I seriously get the 4Motion with the TDi? Because if so, I may have just died.

stevem

Apr 14, 2014 12:57:27 PM

Yes, diesel, manual trans & AWD! What they need to compete w/ the Subaru out west though is increased ground clearance, not decreased.

Scott

Apr 14, 2014 2:47:42 PM

Agree. I live in Colorado, and the the combo I’d like to see is 2.0 TDI, AWD and 6MT. The DSG is nice, but maintenance is costly for a small performance gain. Also, it could get expensive with TDI, DSG and AWD

Don

Apr 15, 2014 9:37:05 PM

One more vote for a diesel, AWD, and 6-speed manual.

Bernie

Apr 17, 2014 10:27:38 AM

…finally, a TDi awd wagon. I’ll change my suv for it in a heartbeat!

Clermont1

Apr 20, 2014 12:59:18 PM

Well, yes, yes and yes. it’s about time. and after Wagon, diesel, manual, add one more yes for AWD! Why has it taken Audi, BMW, and everyone SO LONG to bring the Euro-Norm to us real enthusiasts?!

Joline

Apr 25, 2014 5:18:38 PM

Close to perfect! With more clearance it would be perfect!
Thanks! When can I order one?

bruce

Apr 28, 2014 9:23:13 PM

looking forward to ordering one as soon as possible… hopefully with 4Motion too…

Hankster

Apr 28, 2014 11:18:34 PM

I will RUN to the VW dealer with cash in hand as soon as I can buy a genuine diesel, 6 speed manual, awd wagon. It doesn’t get any better! Why has it taken so long? We are so overrun with porky SUVs I want to gag.

John

Apr 29, 2014 2:51:29 PM

Diesel 6 speed manual wagon? Hell yes!

rob repp

Apr 30, 2014 4:46:27 PM

current: 2004 golf r32. eager for new options. awd would be a plus.

Ed

May 1, 2014 6:39:26 AM

Been waiting on something like this for years! Just sold my 2011 A4 Avant Quattro. They only come auto and with the 2.0T. Had a GTi 4 door previously and always loved the bang for the buck I got in the VW. Looking forward to an AWD, 6spd manual diesel!

Chris

May 2, 2014 8:40:13 AM

You couldn’t have put this out last week BEFORE I bought a 2014 Jetta Sportwagen TDI manual on Monday?? What I really wanted was a Passat wagon, which they don’t make any more in the U.S. Maybe I’ll trade in the JSW next year. But for now I’m happy.

Carol

May 3, 2014 8:33:23 AM

I currently own a 2009 Jettta TDI sportwagen with 90,000+ miles on it. The extra cargo space plus the diesel make this an easy choice over the Subaru Outback for my next car.

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Our family celebrated the 4th of July in FOUR different places

Posted By on July 7, 2014

TaylorGlacierNatParkMT_1407

GlacierNatParkMT140705First … my son Taylor took a few days away from work in Williston, North Dakota Taylor140706to going backpacking with a few guys in Glacier National ParkMontana. His weather was picture perfect and besides being out of shape for the long an challenging hikes, he had a fantastic time. I’m so glad he is taking the opportunity while young and single to enjoy the beauty around him … even though driving though Montana isn’t exactly close. Gorgeous views.

K_J_Evan_MN140704Katelyn on the other hand is already enjoying her new home and life in Minneapolis. Husband Drew worked on July 4th, but cousin Justin and his family invited Katelyn to celebrate the day with them. Every time I see Maddy and Evan’s photos I realize just how fast life is moving. I hope Justin and Katie know how much I appreciate them making both Katelyn and Drew feel welcome in Minnesota?

MastworkZola_Encore140703As for me, I spent part of my time in Florida doing some hurricane prep on the boat. I stripped the sails and bimini off of Encore (photo right with just sail down) and gave my friend R_MarkJones140703Mark a hand with one of his “up the mast” projects. He did the hard work of hoisting me aloft, while I enjoyed the scenery from my perch in the bosun’s chair. EncoreMailHalyardShackle

I took measurements in hopes to find a fair prices on a few lines (halyards, sheets, furling), and dropped my genoa (sail) off at SouthSails for some restitching. 

Brenda HarkenRollerFurlerworked on July 4th and so we celebrated our time together on the weekend. We worked in the yard, fixed Angus Dogs and then ribs on Sunday afternoon. The weather was about as nice as one could ask on both Saturday and Sunday … the humidity was low and temperatures warm. For those few times when the working in the yard and cutting down dead trees had me sweating, there was always the pool (which still needs to be cleaned BTW). It couldn’t have been much nicer 4th of July and weekend … except maybe having the the family back home?

As you can tell from the below photo, I pretty good at the supervising!
Smile
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No waves? No problem.

Posted By on July 6, 2014

Now tell me that these electric surfboards wouldn’t be fun? Depending on charging and battery life, having one of these would be great at a beach cottage or to have when cruising or chartering. An Aquila Electric Board has to be better than “sea lice” when it comes to noise.

Tech Friday: Low cost or free wireless data based on apps

Posted By on July 4, 2014

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For those of use experimenting with free wireless plans and wondering if it is possible to have free cellphone service WITH data, Freedompop is inching closer. So far my experience has been marginal with both the limited free phone service and wireless hotspot. Usually when using data I push my 500MB per month limit and found it worthwhile to pay the $3.99/mo to “bank” data for the future. Freedompop is weak in the customer service department and getting things straightened out is a test of patience … growing pains I suppose? Anyway, a recent Tech Crunch article highlighted a new approached being experimented with as a way to give customers additional free or low cost data — apps centered. For those using their mobile device for only a couple primary apps, this might be the ticket?

Nissan EV Leaf replacement batteries cost $5,499 with exchange

Posted By on July 3, 2014

If you’re thinking about saving a few fuel dollars and are contemplating driving an electric-vehicle like the Nissan Leaf, nissanleafbe sure to factor the price of a new battery into your “energy savings” numbers. Nissan’s replacement battery for the popular EV Leaf is $5,499, which includes a $1000 credit for the old battery. That’s a big OUCH for those wanting to make their cars last a few years.

It will be interesting to see if complaints continue from owners who live in hot climates – warranty changes last year to address. They have complained about rapidly degrading batteries … probably not something that only affects Nissans. I’ve often wondered how owners who look to their 8 year/100,000 mile warranty for battery replacement when they begin to experience “range problems” in the 6th or 7th year of ownership? Currently Nissan will repair or replace a Leaf’s battery within five years or 60,000 miles if it loses more than 30 percent of its charge capacity.” I’ve heard from Chevy Volt insiders who say that battery preservation is one of the primary reasons they do not extend the “EV-only” range on their vehicles and cycle the engine start – perhaps smart in the long run.

IMHO, the EPA window sticker is less than truthful if it does not not factor in a “battery replacement” as part of the “fuel cost” calculation. Buyer beware … or instead lease.

 leaf-batterynissanleafepasticker

Inflation: Prices are higher, but are they out of proportion?

Posted By on July 2, 2014

 rising-student-debt

I’ve been doing some reading lately from those concerned about an uptick in inflation. Since many of the writers are the same people who have been warning for years about inflation, it is easy to take their analysis with a yawn and a bit of skepticism. Still, my commonsense indicator has also kicked in and can’t help but wonder how any government can inject the billions of dollars into the economy without devaluing the currency? So far so good unless you’re paying for college (graph above), unemployed or your paycheck has been stagnant. (the charts in this post may be a couple years off but close enough to make a point)

Note the end points for the images below, Gasoline, Crude Oil, Corn and Gold
graphs, all end up nearly on par with the inflation adjusted dollar.

InflationData_Gasoline2013InflationData_CrudeOil2014 
 InflationData_Corn2011 InflationData_Gold2013 

InflationData_NYSEIndex2013

One online resource (charts in this post) has been independently collecting numbers and comparing Inflation Data for a few years and demonstrate that most commodities have not rise outrageously in recent years (compared to historical numbers). Some of the data goes back to the early 20th century while others covers the more recent 30 years. All in all, prices are definitely “up” but most have risen appropriate to the inflation rate over time … that is EXCEPT FOR ONE. Take a look at the cost of college (and those saddled with college debt); it has risen significantly in comparison to the inflation rate. Economics talk about the cost of energy taking money out of the economy and being a tax on every American, but what about the years of student loan payments preventing the next generation from buying a home or purchasing “things” that keep businesses humming and the economy growing?

InflationData2012_CollegeEd

Looks like Encore and I will be wet for a bit

Posted By on July 2, 2014

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Arrived at the boat Tuesday evening after a long day of traveling … flight delays and rain squalls driving I-95 south from Orlando. All was well but wet as expected. Hopefully Tropical Storm Arthur will track a little faster and as expected taking the current 50 mph wind and rain with it. I’d like to have a little dry and calm weather in order to store the sails and canvas.

Landing a Harrier jet aircraft on a stool

Posted By on July 1, 2014

The U.S. Marine Corps has some talented pilots, including Capt  William Mahoney landing his AV-8B Harrier aircraft, along with equally skilled U.S. Navy 6th Fleet support crews. What a landing. Thanks for protecting our country and keeping us safe!

Desultory - des-uhl-tawr-ee, -tohr-ee

  1. lacking in consistency, constancy, or visible order, disconnected; fitful: desultory conversation.
  2. digressing from or unconnected with the main subject; random: a desultory remark.
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