Newt Nonsense - Why $2.50 Won't Buy You a Gallon of Gas

In order to read this post objectively, you're going to need to take off your political cap.  Seriously.  Let's try to frame this debate around the issues and not the party.  I'm not endorsing any candidate.

As an economist, I'd like to poke a few holes in what I feel is an impossible promise from a presidential candidate.  Sure, they all promise things like "change" and "peace," those we can all understand when the candidate fails to deliver.  But, a $2.50 cap on a gallon of gas?  Say it ain't so Joe.

A few basic economic principles first - demand and price are inversely related.  What does that mean?  The cheaper a product becomes, the lower the price drops, the more we demand of it.  The more expensive a product becomes, the higher the price rises, the less we demand of it.  I'd rather have two pairs of shoes at $50 each than one pair at $100.  Now think about the other side of the equation - supply.  As a supplier, I'd rather supply more when prices are high because I make more profit.  That's why we say supply and price are positively related.  The graph below represents these principles:

Where these two lines intersect is the "sweet spot."  It's where the economy is in equilibrium, and prices and quantity are at the most efficient point.  This is NORMALLY how prices are determined.  What about gas prices?  They aren't determined this way.  An international cartel called OPEC determines our prices.  OPEC is made up of member countries that meet occasionally to agree to restrict their output of oil to keep prices high.  Remember when I told you that suppliers prefer high prices for high profits?  That's the same idea but to a much higher degree.

Now for Newt: his campaign is really pushing this idea that under his leadership, gas won't cost more than $2.50 a gallon.  Um, what?  Has he figured out something that the millions of economists and financial minds haven't discovered?  Sure, the idea sounds good to the single parent on a tight budget, but Newt is conveniently not mentioning that Americans don't determine gas prices - OPEC does.  Was he planning on showing up to their meeting and saying "hey guys, I know you've enjoyed lucrative profits exporting oil to gas-guzzling Americans, but I'm going to ask you politely to drop your prices?"  Let's assume for the sake of the argument that OPEC is a congenial group that only wants what's best for us (I can hear the laughter already).  Capping gas at $2.50 a gallon is the equivalent of a price ceiling - prices can only rise up to $2.50.  Here's a graph showing the effect of a price ceiling:

Because our current price on a gallon of gas is higher than $2.50, enforcing a binding price ceiling introduces a dangerous element to our society - a shortage of gas.  As a supplier, if I'm told that I can only charge a price that is lower than what I'd receive normally for my product, I'm not going to supply that much.  I don't make as much profit.  Hence, society demands more gas at lower prices, but suppliers aren't willing to meet demand.  What does a shortage of gas mean to our society?  Tourism would tank and American drivers would spend their days waiting in line for available gas.  Sound like a picnic to you?  If you're going to vote for Newt, that's fine, just don't tell your friends it's because you want a gallon of gas for $2.50.  You're smarter than that.

Conversations with the Mini-Me

I've been working on a few different blog posts, but I wanted to write this down before I forgot what a special time I had with my niece, Emma, over Christmas break.  When Emma was born, we affectionately called her my Mini-me because she favored me.  Here's the proof:

This was at about 2 months of age.  Today, she is a beautiful three year old girl that looks nothing like that baby in the Bumbo.  She has her mother's face with her father's height and skin tone:

As Megan and Clint can attest, watching this little girl grow up is mesmerizing.  Her increasing cognitive ability is both interesting to watch and, at times, very funny.  The following are a few conversations (re: arguments) Emma and I had over Christmas while they were staying with us:

Conversation #1
(upon their arrival from Atlanta)
Me: Emma, did you have a nice ride in the car to Memphis?
Emma: I sleep.
Me (for some reason, feeling the need to correct her grammar): You slept.
Emma: I sleep.
Me: You slept.
Emma: I sleep!
Me: You slept.
Emma: I. TAKE. A. NAP. (while simultaneously rolling her eyes at Mommy wondering how much longer she has to play with "special" Aunt Katie)

Conversation #2
(In response to her never ending "Why?"s, I decide to turn the tables on the munchkin)
Me: Emma, what are you doing?
Emma: Drawing.
Me: Why?
Emma: Because I want to.
Me: Why?
Emma: To make a picture.
Me: Why?
Emma: Because.
Me: Why?
Emma: Stop it.
Me: Why?
Emma: Stop it!
Me: Why?
Emma: Stop asking.
Me: Why?
Emma: STOP ASKING!  (Here, she omits the "k" so she is screaming at the top of her lungs STOP ASS-ING!)

Conversation #3
(Emma thinks that Megan is asleep in the den adjacent to the kitchen)
Emma: (Using her best whisper voice that could be heard in a loud stadium) Aunt Katie, can I have another cookie?
Megan (perking up): Katie, what does she mean by "another" cookie?
Me: Meg, Emma's only 3, her command of the English language is so slight that she probably doesn't know what that means-
Emma: I want a bigger one this time!
Me - busted for sneaking her cookies before dinner:)

Bottom line, this girl is a hoot.  We always dissolve into giggles around her.  Emma's parents have done a wonderful job of raising such a sweet little girl who not only performs well in the lime light, but loves her family and enjoys going along with whatever the group decides.  Too bad they don't live closer:(

Five Years: Where has the time gone?

It's hard to believe that 5 years has flown by since that picture was taken.  It was such a fun day being surrounded by family and friends as JD and I took that leap.  You really never know what your life will be like.  Sure, we all have ideas of where we would like to be in the future - what jobs we hope to have, goals we hope to achieve, etc. - but all those plans can change in an instant.  What matters the most is who you choose to have by your side through all of those life moments.  I am glad to have JD by my side as we navigate our life together!

2011: A Year in Review

If you've been reading my posts, you can tell I am pretty cynical about 2011.  True, it wasn't our favorite year.  But, I have this overwhelming desire to "fix" everything.  While I can't fix 2011, I can choose to dwell on all of the positive events and blessings from the year:


1. I began working on my PhD.  This was a big step for me.  You've read it all before - I loved my previous job, but knew I had this desire to go back to school.  I took that leap.  It was a pretty hard landing.  However, I've met many people along the way who have helped me up, and made sure I was on the right path.  I've enjoyed these new friendships.

2. I taught my last semester at the community college.  Previously, I always taught one night a week in three hour stretches and that was fine with me.  It was all I ever knew.  Not working gave me the flexibility to instead pick up a day class twice a week in 1.5 hour stretches.  What a difference!  Not only did I get to know my students better, but I felt like I did a much better job teaching.  It gave me just enough assurance to know that teaching 85 students at the university this spring would be a piece of cake.

3. I received a graduate assistantship beginning Fall 2011.  This welcome news came in the Spring.  My GA award not only pays for tuition, but also provides a monthly stipend in exchange for 20 hours of research/teaching each week.  Not a bad deal at all.

4. JD and I began the INSANE process of gutting our kitchen and bathrooms in our house.  We thought we'd do this in 2007 when we moved in, but it kept being delayed.  It was expensive, we never could agree on what to renovate.  Then I met someone through Leadership Germantown who was a general contractor, and we became fast friends.  Finding someone you trust is key when embarking on a huge project like that.  It took six weeks or so to complete, three of which we lived off and on with my mother, with the rest spent on vacation.  I will do a renovation posting later once JD sends me the "before" postings.  Here is a teaser photo of a demolition of one of the bathrooms:

5. We spent two beautiful weeks in the Outer Banks.  When I was in high school, my best friend invited me to vacation there with her family.  I was enamored with the clean beaches, family friendly atmosphere and lack of chintzy commercial establishments.  JD and I drove (with Buddy) the 16 hours there and totally relaxed for two weeks.  The first day of driving on Buddy's longest car ride of his life:

We spent the first night in Raleigh before driving the remaining 6 hours to our beach house, complete with screened porch.  We spent every night on that porch playing Mexican train dominoes and drinking wine, listening to the ocean waves:

My family came up for a few days, and we all enjoyed spending a few days on the beach together.  Emma (my niece) enjoyed hanging out with her favorite aunt, and assisting with the cooking:

I'm fairly certain Megan will make me take that picture down, but she's so stinking cute.  JD and I also enjoyed a day trip to Ocracoke Island, and all the lighthouses along the East coast. One of the many lighthouses:

A visit to Teach's hole, one the many pirate legends from the island.

6. I started mentoring at Girls Inc. of Memphis.  The program matches you with a girl who is typically underprivileged that would benefit from a role model in her life that encourages her to strive for a better lifestyle.  It doesn't mean that these girls don't have role models at home, but showing them how you graduated and moved on to better things by your own accord motivates them.  The girl I mentor is an incredibly talented and creative young woman.  While I know better than to bring my own issues to our mentoring sessions, I wonder sometimes who benefits more from our Wednesday meetings.  Listening to her problems and offering advice when asked really has put everything in perspective for me.  It is an ever constant reminder to be thankful for the people I have in my life.

7. I joined the Junior League of Memphis.  I have always volunteered through various organizations, but I felt like these efforts were disjointed.  There was no umbrella guiding my activities, I just did them on a whim.  The women I have met through this group are strong leaders with a desire to make a difference in their communities.  I count myself lucky to have so many new friends in this capacity.

8. I threw a surprise party for my husband.  This was a big deal - I'm not a birthday person.  Just give me a slice of cake and a stack of presents, I'm good to go.  I don't need a lot of fanfare.  But, considering what a wonderful husband JD had been to me this year, and what an incredible source of support he has been, this seemed fitting for his 30th birthday.  You can read more about it here.

9.  JD and I attended his first SEC football game.  The icing on the cake?  It was an LSU game.  Considering their winning season, the game against Ole Miss was more like a slaughter on the Rebels, but he enjoyed the game.  Good friends of ours invited us to tailgate with them, so he also had his first tailgate experience.  When my schedule is more flexible, we will have to go down to Baton Rouge to have the true experience.

10.  We spent Thanksgiving with the Graffams.  JD's parents typically work on holidays, so we usually do holidays with my family or on our own.  However, we made a point to spend this holiday with his family, and we had a good time.  David (JD's dad) and I have a mutual dislike of traditional Thanksgiving food (stuffing, cranberry sauce, etc.), so we had a good time making up our own non-traditional menu.  Sarah (JD's sister) and Mary (his mother) helped out with the cooking.  It was totally relaxing.

11.  Christmas 2011 - it was crazy, busy, fun and exhausting all at the same time.  JD wants everyone to know that he kicked Christmas's butt this year.  What does he mean by that?  He single-handedly decorated our entire house - from the lights he strung on the roof, to the ornament centerpieces and garland and ribbons tied on light fixtures throughout the house - he did it all.  I was too busy with school to get everything done, and he took control.  After Christmas, I was so sick that I couldn't help him break it all down.  He boxed everything up, including my Christmas china and 5,000 Christmas serving platters.  I don't know why I have so many.  I need an intervention.  The holidays were filled with some 15 parties, six house guests and days of celebration.  Our families had such a wonderful time!


So this was my Top 11 of '11.  Yes, I stole that idea from my friend Jennifer's blog.  So what is your Top 11?  Seeing this list makes me look back on 2011 as the year we overcame personal struggles.  I now realize as long as we have wonderful partners and families in our lives, there is nothing we can't overcome, no goal we can't reach.  Bring it 2012!

Dressed for Battle

I'll admit that I am not the best about keeping up a daily devotion.  Somedays, by the time my head hits the pillow, I am asleep faster than I can think about opening up that devotion book.  And the morning?  I'm usually so late that the thought of completely stopping to read my devotion is just maddening.  I'm not perfect, but that's no surprise.

So, last night I hit the hay a little earlier than usual, and decided to catch up.  Part of the problem with my current devotion book is that it is not written well.  The woman who wrote it, while a wonderful Christian leader in her own right, should recognize that writing is not her spiritual gift.  It's not mine either - hence, the lack of books by yours truly.  Just when I get fed up with reading about her grandkids, I stumble on a valuable lesson that humbles me.

"Dressed for Battle"

Put on the whole armor of God, so that you may be able to stand against the wiles of the devil. (Ephesians 6:11)

The writer discusses how we dress when we leave the house - we dress for success for a job interview, dress formally for a formal affair, or wear our Sunday best for church (for those of us who still think God deserves our best appearance).  But how do we dress for battle?  In Paul's letter to the Ephesians, he asserts that we should never leave the house without the whole armor of God lest we are tempted by the devil.  I read this part smugly, thinking how well I stand up to temptations.

Oh wait.  That couldn't be further from the truth.  While I am not tempted by drugs or illicit behavior, there is still one ever-present hand of the devil in my life - procrastination.  It has caused what could have been only a slightly emotional time in my life to snowball into the worst semester of my (so far) very short PhD career.  I spent the first half of the semester wallowing in self-pity when, to be honest, things could be much worse.  If it weren't for my sweet husband, I think I would still have that mindset.  I recognize now that stopping my life for every bump in the road is just another way that the devil takes control.  As the semester is wrapping up, I have several things due in a short time period: three final exams, two papers and a project.  Wearing the armor of God and not answering the call for procrastination will see me through!

Surprise!

When you combine 30 friends and family, a fajita bar, a margarita machine and the LSU/Alabama football game, what do you get?  A pretty memorable surprise 30th birthday party for JD!

My husband, JD, is the type of guy who has everything.  Every toy and gadget, he owns them all.  This usually leaves me to buy clothing for him for his birthdays, but that doesn't excite him, and I knew I had to step it up this year. His birthday isn't until Nov. 18th, so I knew that throwing a surprise party for him on Nov. 5th would definitely throw him.

After a pretty clever rouse on my part to get him out of the house all day, we were headed home after a wedding reception to change clothes before "going out to dinner with friends."  On the way home I was pretty nervous, and hoping everyone remembered to park on another street.  Driving into the cove, there wasn't a soul parked in our cove, but I did casually glance at the street opposite ours.  It was loaded with cars!

Walking JD into the house was another issue.  I pretended there was a birthday package at the back door and he needed to close his eyes.  I walked him in an imaginary circle around the "box" and led him through the door so the festivities could begin.  Thanks to my mother, cousin and aunt, everything was in place while we were at the wedding reception.

There were tons of yellow and purple balloons, yellow and purple flowers and LSU accents to add to this 30th birthday theme:

Chimichanga appetizers for everyone to snack on while waiting on us to arrive:

Fajita bar fixings:

JD's cake - it says Happy 30th Birthday, JD on the banner:

JD blowing out his candles - that cake was super-heavy:

Friends watching the game:

Margarita machine - a huge hit:

Bar:

JD goofing around after church the next day when we cleaned out the margarita machine:

It's a New World

If you've read my "About Me" section, allow me to elaborate on recent life changes. After I finished my masters degree in economics, I was hired by the City of Germantown to grow and foster their economic development efforts in the region. It was a fantastic job. I have no doubt that if I were still there, I would love it as much as I did when I was hired four years ago. The problem? I kept thinking there was *something else* I was destined to achieve.

Enter the summer of 2008. I served on the Business Advisory Committee for Southwest Tennessee Community College - my main role was to affirm that their economic curriculum was aligned with the objectives of the Tennessee Board of Regents. With the recent economic crisis and increased unemployment, their enrollment was huge and they were scrambling for professors. Here's the part where I never say "no" to anything. They asked me to teach one course for ONE semester, only one night a week. I had barely said yes before I was posing for a mug shot on my adjunct school ID. 

Something amazing happened - I LOVED teaching economics. And I started kicking myself for never getting a PhD while I was in grad school. The one reason I would always give when stopping at the masters level was the only advantage to getting a PhD was to teach in academia, and that didn't seem like my cup of tea. Stage fright anyone? One week of giving presentations at the City to elected officials cured all stage fright, so I had no more excuses.

I ended up teaching one night a week for two years, while trying not to listen to my inner voice about going back to school. There never was a good time. JD was just starting his business, someone was leaving our department and I needed to cover their duties, there was a big project coming through the pipe that I was the lead on, you get the idea. Then I realized - hey I'm young and we don't have kids - when will there ever be a better time? So, I had that incredibly hard meeting with my boss (who is a good friend, mentor and role model), and laid out the resignation letter on his desk. It was a very sad day for both of us. The City administrator and Mayor didn't make it any easier on me - I kept agreeing to delay my resignation until they were ready. But, six weeks later, we all agreed to part ways and remain on friendly terms.

I left the City right before the holidays, and immersed myself in "girl world." I took SEWING classes for crying out loud. I told my sister I would make the linens for her nursery. Excuse me, who am I again? Thank goodness she didn't hold her breath. I am not a creative, crafty person. I am a no-nonsense, pants-suit wearing, put-your-big-girl-panties-on-and-deal-with-it leader. My days had been deduced to victory cheers for threading the bobbin on my machine correctly, going to Target only once, and calling my husband no more than five times a day. I started talking to telemarketers. "Oh, so your truck will be driving through my neighborhood looking for donations on what day?" Hold on, let me get a pencil and stick it in my eye. I had been home only four weeks.

Under the increasing threat level of self-inflicted wounds, I crawled on my hands and knees to my advisor and begged to be admitted in January in lieu of waiting for the school year to start in the Fall. Thankfully, my reputation as a masters student preceded me and I was allowed to begin classes a semester early. I had all these grand ideas of immersing myself in my PhD studies, researching ground-breaking topics and getting published right away. Yeah, right. My biggest decisions have been whether or not I think people would notice if I wore sweats to class, and how many color ink pens should I bring to class to draw those pretty graphs that I don't understand.

What do I miss the most? Making important decisions. You want to spend a couple million dollars building a shopping center with guaranteed tax revenues for the City? I can walk you through that on my lunch hour. What's that? You're developing a residential project with million dollar homes that will be around for decades? Here's how you need to design it. You saw me on TV the other night? (Mind you - this is not real TV, this is the public information channel, and you have to live in Germantown and subscribe to Comcast to watch it. I think the entire viewing audience was my uncle and a few other elderly residents) Thanks for tuning in to City news. I still have never seen my interview with the Mayor on GHS-TV.

My biggest decision these days is whether or not to wear my shoulder strap on my messenger bag, or just to carry it by the handles. This directly correlates with the number of books I have that day - it is a very fickle decision process. Admittedly, I have begun to hit my stride in grad school, but those sewing projects? They are collecting dust in my closet, waiting to be finished. A bit like my life - waiting on me to finish making decisions that turn everything upside down.