Clarkhoward.com - Christmas Kids 2007!

Why does New Hampshire have a higher rate of economic growth than neighboring states like Massachusetts or Vermont? Clark thinks the answer is obvious -- taxation. The Boston Globe's Robert Gavin recently penned an article lamenting the fact that Mass. has no job growth and the second worst economy in the United States. But the story has no mention of the fact that heavy taxation can cause economic decline. After all, they don't call the state "Taxachusetts" for nothing! Michigan is also suffering because they're always raising taxes too. When you do that, people vote with their feet and leave for greener pastures. Take the case of Derek Jeter. The Yankees baseball player is being sued by New York City and State because he had the good sense to move from the Empire State to Florida. In doing so, he fled a place where he was faced an 11.2 percent tax to a place where the tax is zero!

Clark has a recipe for Mass., Mich., NY and any other tax-happy states: Control and cut government spending where you can. Don't play Santa Claus to everybody. NY has a long tradition of the government helping everybody out whether the city is run by Republicans or Democrats. Look at Texas. The Lone Star State has passed NY to be the second most populous state in the nation. It's also has one of the lowest taxes in the nation. Most politicians lack the fortitude to say that in order to cut taxes, we should be cutting government spending. But the government can no longer be our sugar-daddy. You've got to cut the sugar!

The Super Bowl is the biggest moment of the year for the ad industry. The cell phone industry, meanwhile, has the holiday season as its annual pinnacle. This is the time of year when people who are just getting out of their 2-year contracts look to switch carriers. So you'll see the Big Four advertising everywhere in an effort to woo new business. T-Mobile is one company that tends to give an early Christmas gift to the people every year. T-Mobile is like the weak sister of the Big Four, which is a shame because the Jan. '08 issue of Consumer Reports ranked it just behind Verizon in overall satisfaction. The irony here is that Verizon is the most expensive and T-Mobile is the cheapest of the bunch. In fact, T-Mobile is like the great compromise: You get the best rates and it's the one carrier people hate the least.

T-Mobile's current sale is a real winner. They're offering 1,500 peak minutes for $39/month. Notice that $40 is a real price point in this business; all the companies offer comparably priced plans before junk fees and add-ons. But 1,500 minutes is what makes this offer a keeper. For $10 more a month, you get the 1,500 peak minutes and unlimited free calling after 9 p.m. and on weekends. Just grab these T-Mobile deals fast because they probably won't be around for long. On a related note, Consumer Reports says that Sprint came in dead last in 20 major markets across the country. AT&T didn't do too much better; they came in just a hair above Sprint. But AT&T has a new leader that Clark thinks will turn things around, while Sprint remains leaderless.

About three weeks ago, Clark told you that E*TRADE was in danger of becoming insolvent. Customers began to flee after news broke, though there wasn't a full run on the bank. But those 60,000 people who had E*TRADE accounts with more than $100,000 in them narrowly escaped losing their shirts. Things didn't look too promising for a while. Some 30 companies were offered the chance to provide a bailout and passed up on the opportunity. Finally the Office of Thrift Supervision -- an obscure government department that becomes very important when banks fold -- intervened and got Citadel to invest $2.55 billion to keep things afloat.

Even if it E*TRADE had failed, those who were within FDIC limits would have been safe. The feds are very good at knowing how to handle these kinds of things. They got a lot of experience during the banking collapses of the late '80s! The good news is that your money is usually available the next day after a collapse if you had less than $100,000. But rest assured of this: More financial institutions will fail. Citibank nearly folded and Countrywide is in need of cash bailouts. So the important thing to know is that you must keep your investments within the safety range provided by FDIC coverage. Don't play with fire! Remember that the limit is $100,000, unless you're talking about an IRA. Then you're protected up to $250,000.

Christmas Kids -- one of Clark's most-enduring charity efforts -- has just launched for 2007. Now in its 17th year, Christmas Kids gives listeners the chance to open their hearts and their wallets for needy children who wouldn't otherwise have gifts this holiday season. If you live in the Atlanta area, Clark will be out at Wal-Marts around town to personally meet you and accept your donation. But don't worry if you're not located in Georgia. You can donate online, of course! Last year we had donations from 46 states and Washington D.C. Maybe this year we can hit all 50 states. The beauty of the online setup is that your donation will help children in your area through the Salvation Army Angel Tree program. Any funds we collect will first go to buy basics like clothing for children that are in need. If a child isn't lacking basic necessities, then your money will go to buy gifts. Clark is always touched by the former foster kids who are now adults who come out year after year to donate. They truly know how a child's life can be touched by a gift from a complete stranger. Keep in mind that if you're struggling financially, Clark does not want you to donate. But if you had a good year, come on out or log on to show the love!