Explaining Southern California's economy

3 reasons LA is getting crushed by rising gasoline prices

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FREDERIC J. BROWN/AFP/Getty Images

A man pumps gas into his vehicle at a gas station in Monterey Park, Los Angeles County. Gas prices have dipped somewhat, but was the run-up due to market manipulations?

Los Angelenos have been suffering at the gas pump over the past week. Prices spiked by more than 50 cents, with the average cost of a gallon of regular zooming closer to $5 than $4. Following a fire at Chevron's Richmond refinery in August, L.A. drivers had already gotten used to a new normal, with gas stuck above $4. But last week, in some parts of the area, gas stations were posting prices closer to $6.

In response, Sen. Dianne Feinstein (D-CA) fired off her second letter to the Chairman of the Federal Trade Commission, insisting that the dramatic price increase couldn't be blamed on market forces — a basic imbalance of supply and demand — and was instead due to Tesoro, a major supplier of California's unique blend of gas, getting caught in a "short squeeze" that placed the company at the mercy of traders who were more than willing to use a 97-cent-per-gallon hike in the wholesale gas market to victimize consumers.

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Why are politicians fixated on a 'simple' tax code?

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kenteegardin/Flickr

Pictured: the advanced technology used to calculate the nation's taxes.

Herman Cain has his 999 plan. It's so much simpler than the excessively complex system we have now. Rick Perry just unveiled his 20-20 plan, which is also so much simpler than the excessively complex system we have now. And just today, I heard California Senator Dianne Feinstein support a recommendation, from Erksine Bowles and Alan Simpson's Deficit Commission, to reduce out current six tax brackets to three: 12, 20, and 27 percent (the top rate is now 35 percent).

Simplicity, it seems, sells. But why?

If anything, federal taxes are far easier to file than ever. I used TurboTax for the first time this year and, once I had gathered all my documents, the process consumed about an hour. In 1979, however, long before TurboTax came along, people managed to deal with 17 tax brackets, using a Bic ballpoint and calculator. In 1945, they confronted 24 brackets with nothing more than a No. 2 pencil, a pad of paper, a pack of Lucky Strikes, and stiff drink.

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Reportings: Record U.S. poverty; Kinde Durke; no big V in recovery

Poverty in American isn't just on the rise — it's breaking records: "High joblessness and the weak economic recovery pushed the ranks of the poor in the U.S. to 46.2 million in 2010 -- the fourth straight increase and the largest number of people living in poverty since record-keeping began 52 years ago." (LAT)

 

Some politicians aren't even sure how much Kinde Durke, arrested campaign-treasurer-for-hire, made off with: “I was wiped out too, we don’t know how much,” said Sen. Dianne Feinstein, indicating the losses in campaign funds could run into hundreds of thousands, or even millions, of dollars. (Politico)

 

Dallas Fed does the numbers (and charts) on what everyone pretty much already knows: "No V-shaped recovery is apparent after the most recent slowdown....GDP was about 6 percent below trend in the second and third quarters of that year. Note that despite the severity of the downturn, real economic activity has not recovered at anything resembling the pace of previous recoveries."

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