Is a "Fat Tax" The Answer to Our Healthcare Crisis?

Is it time to get tough on the overweight population? The obesity epidemic in America is out of control! Two out of every three people are obese, and that one guy who isn’t? Well he’s still on the hook for his two buddies' medical costs in the form of higher healthcare premiums and increased taxes. According to Forbes.com, the problem is that the cost of treating obesity related illnesses has skyrocketed. We're now spending a whopping $147 BILLION a year on treatment for overweight Americans. That's more than every single kind of cancer treatment combined.
There's a radical new solution being talked about - a “fat tax.” Basically, adding an extra tax on unhealthy foods, like chips, cookies and soda. The thinking is that if people are going to make bad food choices, they should pay the extra costs. Then that extra tax money would go to fund health care. Policy makers are also hoping that making bad foods more expensive will make people think twice about buying them. It’s the same idea the government used to curb smoking - by taxing cigarettes more.
Now the question is: How do you define unhealthy foods? An avocado has about the same amount of fat as a hamburger. Do they both go on the list? Well, the plan is to use a numerical scale to see whether a food’s bad content outweighs the good. However, many people believe that processed foods are cheaper than fresh foods – and may argue that that’s why they eat more junk food. According to our friend Dr. David Katz of the Yale School of Public Health, that’s just not true. He studied this recently and found that the average cost of a grocery cart full of healthy products was slightly less than a cart full of fattening, processed foods.

Economic Meltdown - Articles: The Roots of the Financial Crisis: Who Is to Blame?

Economic Meltdown - Articles: The Roots of the Financial Crisis: Who Is to Blame?

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Senate backs banks on foreclosure bill

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Ways to Save Money

From Real Simple magazine:

We’re all trying to figure out how to save money and live on less. That’s why we’ve tracked down even more ways to cut back! Here are some big money-drains that really add up:

• Paying bills by snail mail. According to ClearPoint Financial Solutions,a company that deals with credit counseling, the average household receives about 15 bills a month. With stamps now at 42-cents each, you’ll spend about $76 a year just on postage! That’s NOT counting the late fees if your checks get lost in the mail. Almost all major banks offer free online bill payment, which lets you schedule payments at your convenience. If your bank doesn’t offer online bill pay, you can call the customer-service departments for your bills to have payments automatically deducted from your account every month.
  
  
• Another money-drain: Purchasing a life insurance policy through your employer. P.J. Patierno, a financial planner, says that a healthy woman in her late 30s could save 20% each year by purchasing a $500,000 life-insurance policy independently. Why? Because the rates charged at work are designed to cover the liabilities of everyone in your office. The overweight guy down the hall and the smoker upstairs are getting the same coverage as you. So, buy your life insurance from a broker or a financial planner. An independent provider will know details about different policies, and can recommend one suited to your lifestyle.
  
  
• A cell-phone plan that doesn’t match your needs. According to consumer research firm J.D. Power & Associates, cell-phone subscribers use only 64% of the minutes they pay for. So, analyze your usage. You may find that buying fewer monthly minutes, but getting unlimited evening and weekend minutes may work better than a more expensive plan. If your contract is up and you’re thinking about switching carriers, check out MyRatePlan.com to find the most cost-effective one that works best for you.
  
  
  When it comes to finances: Don’t get emotional. Amanda Clayman, a social worker who specializes in helping clients deal with money issues, says for starters, STOP wishing that negative events hadn’t happened. That’s wasting energy on something you can’t change. In fact, it’s crucial that you separate money and emotions. Clayman says she’s seen clients use “credit card therapy” to cope with a crisis, but that only made things worse. Yes, your situation may be unfair, but the Universe doesn’t owe you a new wardrobe in return. So, put emotions aside when making financial decisions and concentrate on what’s practical. Then move forward.
  
  If you get sick but, don’t have health insurance go public. Rachel Alt, an ER doctor in New York City, says find a public hospital in your area. Some will agree to charge only what you can pay based on your income. Not sure if a hospital is public? Just look for the words “public” or “county” in the name. If you’re in need of emergency help, the doors of the ER should always be open - no matter what kind of hospital you go to. So, insurance or not, get checked if you’re in any type of severe pain. Your life could depend on it.
  
  One final piece of advice comes from Darryl Robinson, a bartender at Hudson Bar in New York City. He says in difficult times, it’s important not to completely deprive yourself. We all need to be social and see friends – and we can do it economically. His advice? Limit your socializing to either Friday or Saturday night, when most people are free. That way you can catch up with a lot of friends at once. Also, a martini is the best bang – or alcohol - for your buck. Just one can last you the entire evening. Be sure to grab a bite to eat at home before you head out for the evening. Robinson says you’d be surprised how fast your tab can go up when you start ordering food. Plus, if you have something in your stomach when you go out, you’ll drink less, spend less – and handle your liquor better.

North Americans are digging deep to save money. According to USA Today, as the economic news seems to get worse each day, people’s spending habits have swung from spendthrift to frugal in record time. Financial polls find that more than half of all households are cutting back as a result of the falling stock market and fears about the economy. Here’s what some people are doing to save. You might want to try these yourself:

• Selling extra stuff. According to eBay CEO John Donahue, the average person has over $3,000 worth of items just lying around the house they could sell to raise cash. Over 1.3 million people make their primary or secondary income from eBay, and many more are starting to sell things they can live without just to make ends meet.
  
  
• People are eating at home. Restaurants are reporting declining sales, since cutting back on eating out is the number-one money saving move for North Americans, regardless of their income. Families are bonding around the dinner table, buying in bulk, and serving smaller portions.
  
  
• Another way people are making money: by taking an extra job. According to the Bureau of Labor Statistics, the number of people who have an extra part-time job increased 11% in the past year.
  
  
• People are renting movies instead of going out to the theater. According to Home Media magazine, sales of new Blu-ray Hi-Def disks - a newer DVD home movie format - have more than tripled in the past year. Renting a DVD is a whole lot cheaper than a night at the movies, which can run up to $50 for two people when you include popcorn and snacks.

Is the Economy Stressing You Out?

These tough economic times are stressing people out. According to the American Psychological Association, the economy is a top source of stress for eight out of 10 of us. What's happening to people nowadays, as huge companies go bankrupt, and jobs, homes and nest eggs are crumbling? Psychologists say that we’re:

• Preoccupied by worries and unable to focus on work
• Irritable with family members or even pets
• Pessimistic
• Unable to sleep
• Self-medicating with food, sweets, or alcohol

If that sounds like you, try this survival guide from MSN Health:

• Keep your friends close. According to George Howe, a professor of psychology at George Washington University, it used to be that people got security from their families and communities - but that safety net isn’t as strong today. Some people feel embarrassed and don’t want to share their problems with other people, but Howe says it’s important to build up that protective network.
  
  
• Talk to your boss. Mitchell Marks, a management consultant and psychologist, says if you’re worried about your job, you should talk to your supervisor to make sure you remain a valued employee. Find out exactly what your priorities should be on a weekly basis.
  
  
• Focus on your relationship. Facing hard times together brings people closer. So, don’t hide your worries or problems from your spouse. Men in particular tend to shut their spouse out when things go wrong financially or on the job. However, you need to look at your financial situations long-term, and come up with goals together.
  
  
• If you’re really freaking out, turn off the TV news. Many programs talk about the worst possible scenario, and that can cause your blood pressure to spike – even if you just have it on in the background. According to the Duke University School of Medicine, watching more than 30 minutes of television news per day can give people clinical levels of psychological stress. Instead, turn off the TV and focus on what YOU can control, in YOUR economic situation, right now.
  

Soaring Gas Prices

Get More Bang for Your Gas Buck

From CNN:

Gasoline isn’t cheap these days, but there ARE ways to cut costs. Here are a few ways to get more bang for your gas buck.

• Find the cheapest gas stations in your area. In most cities, you can save 30 or 40 cents a gallon if you know where to look. So, check out the prices at GasPriceWatch.com. Here’s a good rule of thumb: Gas stations in upscale areas and near highways generally charge more because the land is more valuable, so their overhead is higher, and the costs are passed on to consumers. Also, stations near state borders tend to slash prices – as a kind of “welcome to our state” sign.
• The TYPE of gas station makes a difference. Service stations with auto repair shops or car washes usually charge more for gas. They don’t need to be as competitive, since the other services are more profitable and bring in gas customers anyway. Gas stations at big box stores, like Costco or Sam’s Club, are a good bet if prices are going down. Why? Because they sell so much gas that the price is reflected at their pumps more quickly. Even if you don’t have a big box store membership, you can still save. Because nearby gas stations often lower their prices to compete with the big box stores.
• Buy gas on Wednesday mornings. Gas prices usually move up for the weekend. So, the lowest point is early Wednesday. In fact, always buy gas EARLY in the morning. Gasoline pumps charge by volume – not density. Since gas is denser when it’s cool, you’ll get more bang for your buck if you fill your tank during the coolest part of the day.
• Watch your driving style. Studies show that gentle acceleration, and using cruise control on highways can improve fuel efficiency by as much as 35%. Which means, you could save 50 cents every time you don’t stomp on the accelerator.
• Buy the lowest-grade gas possible. High-performance cars, like Porsches or Ferraris, need high-octane gasoline for top fuel efficiency, but unless your car manufacturer requires premium gasoline, your car will run just fine on lower-priced regular.