Saturday, April 7, 2012

Economics

I was asked a question about mileage in the motorhome.  Our RV is 40' 9" in length.  It's not the largest, as some go up to 45'.  We use diesel, which tends to be a few cents per gallon more than the most expensive gasoline.  Our mileage ranges between 6 to 8 miles per gallon, depending on whether we are going up or down hill.  We have been told that if we were not towing the Jeep, the mileage would be better. 

Lee never lets the RV get lower than half a tank, and the tank holds a hundred gallons.  You can do the math.  One of the reasons for taking a year to cross the U.S. was to stretch out diesel costs.  At the moment, we are filling up more frequently because we are traveling longer distances over a shorter period of time.

If a couple were to sell their  house (and therefore dispose of all utility payments) and worked part-time at the campgrounds in which they stay, living in an RV could certainly be affordable.  We have seen many full-timers in the campgrounds.  Some are living in RVs because they wish to see the country, some travel between their children and grandchildren, and others escape heat during the summer and the cold of winter.

However, we have also met a few who are in campgrounds because they lost their jobs and homes during the recession, and living in a campground is cheaper.  Did I mention the couple in Petaluma who owned an HVAC company?  The company was very successful until the housing bubble burst and developers stopped building homes.  Within four years they lost their home, and their company is still operating but just barely.  I believe that for the moment, campground managers have adjusted to this.  Most campgrounds have a sizable permanent population, and fewer sites for people just driving through, since there are fewer people like Lee and I who are traveling for pleasure.  I imagine this will change if the economy improves.

Speaking of the economy, I have not addressed this in quite some time.  Last summer, driving across the top tier of the country, we saw many towns that were struggling.  The Seattle area, however, was booming.  Between Microsoft and Boeing, business was good.  Oregon was not doing as well.

When we got to California, we couldn't see any signs of recession.  There were people and cars everywhere, and stores were busy.  Lee kept saying he didn't see how California could possibly be having so many difficulties, with the number of people who must be paying taxes!  We know California has one of the highest foreclosure rates in the nation, and many people, including my sister, are "underwater" on their mortgages (their homes are worth less than their mortgages).  Perhaps the services the state of California provides cost more than the population can afford?  California does seem to have more rules and regulations than any other state, and recycling facilities are the best I have seen.  (I haven't looked at California's budget, but I know Republicans would think this the case - that is, the state is providing more services than it can logically afford.  Which may well be, don't know.)

Tucson, San Antonio, and Houston seem to be doing well.  But why, I am not sure.  It could be that it is a year later, and the economy is improving; it could be that there is a general trend of people moving south for warmer weather, so southern cities are growing while northern cities are shrinking; or it could be that there is enough wealth in these areas to support the menial jobs of the less wealthy. (Think oil.)

If you have any questions about what we have seen or learned on our journey, please ask.  I honestly don't know what people would most like to hear about.

The next blog posts will be on San Antonio and Houston.  I am writing this from a small town in southwest Louisiana, Duson, as we make our way to New Orleans.