Tag Archives: The Economy

May 10, 2011 · 5:35 am

Gas prices expected to drop 50 cents by summer – The Washington Post

Of course, gas prices will drop right after we get back from our driving vacation…

And before the public can shame Congress into ending government subsidies for Big Oil….

As Church Lady used to say, “How convenient!”

Some relief from suffocating gas prices will likely arrive just in time for summer vacation. Expect a drop of nearly 50 cents as early as June, analysts say.

After rocketing up 91 cents since January, including 44 straight days of increases, the national average this past week stopped just shy of $4 a gallon and has retreated to under $3.98. A steady decline is expected to follow.

It might not be enough to evoke cheers from people who recall gas stations charging less than $3 a gallon last year. But it would still ease the burden on drivers. And it might help lift consumer spending, which powers about 70 percent of the economy. A 50-cent drop in prices would save U.S. drivers about $189 million a day.

Typically, gas prices peak each spring, then fall into a summertime swoon that can last several weeks. This year’s decline should be gradual but steady, said Fred Rozell, the retail pricing director at the Oil Price Information Service.

via Gas prices expected to drop 50 cents by summer – The Washington Post.

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May 6, 2011 · 6:18 am

One in three Africans is now middle class, report finds | Global development | The Guardian

The world is changing….

We just need to change with it…

And adjust our perceptions to the new reality….

We aren’t the only rich consumer society anymore…

From The Guardian:

One in three Africans is middle class, a rising group of consumers to rival those of China and India, researchers have found.

Record numbers of people in Africa own houses and cars, use mobile phones and the internet and send their children to private schools and foreign universities, according to the African Development Bank.

Mthuli Ncube, the bank’s chief economist, said the findings should challenge long-held perceptions of Africa as a continent of famine, poverty and hopelessness.

“Hey you know what, the world please wake up, this is a phenomenon in Africa that we’ve not spent a lot of time thinking about,” Ncube said. “There is a middle class that is driven by specific factors such as education and we should change our view and work with this group to create a new Africa and make sure Africa realises its full potential.”

Ncube said the study used an absolute definition of middle class, meaning people who spend between $2 and $20 a day, which he believed was appropriate given the cost of living for Africa’s nearly 1 billion people.

The study found that, by last year, Africa’s middle class had risen to about 34% of the continent’s population, or about 313m people – up from around 111m (26%) in 1980 and 196m (27%) in 2000.

More:   One in three Africans is now middle class, report finds | Global development | The Guardian.

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May 5, 2011 · 7:53 pm

An Average CEO At America’s Big Corporations Earns 200 Times The Salary Of A Navy SEAL

Uh, who do you think is worth $11mm a year?

I’d vote for the Navy Seals if I had to vote for anyone….

This pay thing differential thing is really getting obscene….

From ThinkProgress.org:

After the killing of Osama Bin Laden at a compound in a suburb of Islamabad, Pakistan, much of the nation’s focus has turned to the men in our military who were responsible for the raid. The combat team that attacked Bin Laden’s compound was composed of an elite unit of Navy SEALS.

As economist Dean Baker points out, ABC News did a feature story about the SEALs to highlight the sacrifices those enlisted in the unit make. ABC compared their base salaries of $54,000 a year to the average annual salary for teachers. Baker notes that perhaps their salaries should be compared to Wall Street CEOs who earn tens of millions of dollars:

In the wake of their successful assault on Osama Bin Laden’s hideout, ABC News did a short feature on the Navy Seals. The report tells us that the people who hold this highly demanding and dangerous get paid about $54,000 a year. It then adds that:

“The base salary level [of Navy Seals] is comparable to the average annual salary for teachers in the U.S., which was $55,350 for the 2009-2010 school year, according to the Digest of Education Statistics.’ That is one possible comparison. There are other possible reference points. For example, the CEOs of Goldman Sachs and J.P. Morgan both pocket around $20 million a year.

Baker’s query poses an interesting question. What would the numbers look like if the base salary of a Navy SEAL — who risk their very lives in their day-to-day work — was compared to the compensation of the CEOs of some of America’s wealthiest corporations? Data from the AFL-CIO’s Executive Pay Watch finds that the average 2010 CEO compensation at an S&P 500 company was $11,358,445…

It’s important to note that the gap between executive compensation and average worker compensation has exploded over the past few decades. CEOs at America’s largest companies now earn 343 times more than the typical worker. In 1970, the average CEO earned 28 times as much as the typical worker.

via ThinkProgress » GRAPH: An Average CEO At America’s Big Corporations Earns 200 Times The Salary Of A Navy SEAL.

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April 30, 2011 · 10:57 am

Your Pain, Their Gain: How High Gas Prices Impoverish The Many While Enriching The Few

Can someone.  Anyone.  Justify why the Republicans- and some Democrats- still vote for Government subsidies for Gas and Oil companies?

Talk about Socialism….

They are redistributing the wealth from everyday Americans to the Oil Companies and their rich stockholders and management teams….

The next time you’re gritting your teeth as you fill your tank with $4 gas, here’s something to consider: Your pain is their gain.

The last of the Big Five oil companies announced first-quarter earnings Friday, so the totals are in. Between the five of them, ExxonMobil, BP, Shell, Chevron, and ConocoPhillips made $34 billion in profits in the first three months of 2011 — up 42 percent from a year ago.

That’s about $110 for every man, woman, and child in the United States — in just three months.

Exxon alone cleared a cool $10.7 billion profit from January through March, up 69 percent from 2010. That’s $82,175 a minute.

Why the staggering increase in earnings? Precisely because you’re paying $4 a gallon for gas.

via Your Pain, Their Gain: How High Gas Prices Impoverish The Many While Enriching The Few.

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April 27, 2011 · 8:36 pm

Cagey Obama Sets an Election Trap for Paul Ryan and the Koch Bros. | | AlterNet

Very smart Politics….

From Alternet.com:

By baiting Ryan to present his budget plan before the administration unveiled its own, Obama deftly played Ryan’s own star-pupil, parent-pleasing nature against the eager Wisconsinite. When the president unveiled his own budget plan at a televised speech two weeks ago in Washington, he invited Ryan as his guest, and then issued a broadside against Ryan’s plan, saying it was “less about reducing the deficit than it is about changing the basic social compact in America.”

“There’s nothing serious about a plan that claims to reduce the deficit by spending a trillion dollars on tax cuts for millionaires and billionaires,” Obama continued, as Ryan looked helpless on. “And I don’t think there’s anything courageous about asking for sacrifice from those who can least afford it and don’t have any clout on Capitol Hill. That’s not a vision of the America I know.”

The Republican was clearly taken aback. “When the president reached out to ask us to attend his speech, we were expecting an olive branch,” Ryan told McClatchy Newspapers. “Instead, his speech was excessively partisan, dramatically inaccurate, and hopelessly inadequate to address our fiscal crisis. What we heard today was not fiscal leadership from our commander-in-chief; we heard a political broadside from our campaigner-in-chief.”

Since then, Obama has continued to hammer away at Ryan. On the campaign trail in California, Obama used the words “fairly radical” to describe the Ryan plan.  “I wouldn’t call it particularly courageous,” Obama said.

via Cagey Obama Sets an Election Trap for Paul Ryan and the Koch Bros. | | AlterNet.

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April 27, 2011 · 8:28 pm

GOP Reps Ryan, Webster face furious voters at town halls | Raw Replay

Yep, Political Suicide….

I’ve said before that over-confidence and over-reach would do them in…

I just hope this builds….

In the words of MSNBC host Rachel Madddow, House Republicans are in the midst of a “collective freakout” over the public’s reaction to Rep. Paul Ryan’s (R-WI) budget plan, which cleared the House right before Congress went on vacation.

Among other items, Ryan’s budget would significantly cut Medicare spending, eventually phasing it out in exchange for a coupon program that would only cover a small percentage of seniors’ medical bills.

Four Republicans voted against it, and not a single Democrat voted for it.

Now, Republicans are starting to catch the anger that Democrats caught in 2009 in the midst of their push for President Obama’s health care reforms. In two of the most recent examples, Reps. Ryan and Webster (R-FL) were confronted by angry crowds demanding to know why they had voted to cut Medicare.

A recent Gallup poll found that the majority of Republicans do not want Medicare to be cut.

via GOP Reps Ryan, Webster face furious voters at town halls | Raw Replay.

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April 27, 2011 · 8:18 pm

Black Unemployment At Depression Level Highs In Some Cities

Another under-reported story….

From The Huffington Post:

CHARLOTTE, N.C. — In the decade leading up to the Great Recession, Wanda Nolan grew accustomed to steady progress.

From an entry-level job as a fill-in bank teller, she forged a career as a commercial banking assistant, earning enough to become a homeowner. She finished college and then got an MBA. Even after the recession unfolded in late 2007, her degrees and her familiarity with the business world lent her a sense of immunity to the forces ravaging much of the American economy. Nolan was an exemplar of the African American middle class and the increasingly professional ranks of the so-called New South.

But in September 2008, everything changed.

A bank human resources officer called her into a private conference room. “All I heard was, ‘Your position has been eliminated,’” says Nolan, 37, who, despite being one of the more than 13 million officially unemployed Americans, still spends most days in her self-styled banker’s uniform of pearls and pants and practical flats. “My mind started racing.”

More than two years later, Nolan is still looking for a job and feeling increasingly anxious about a future that once felt assured. Her life has devolved from a model of middle class African American upward mobility into an example of a disturbing trend: She is among the 15.5 percent of African Americans out of work and still looking for a job.

For economists, that number may sound awful, but it’s not surprising. The nation’s overall unemployment rate sits at 8.8 percent and the rate among white Americans is at 7.9 percent. For a variety of reasons — ranging from levels of education and continuing discrimination to the relatively young age of black workers — black unemployment tends to run twice the rate for whites. Yet since the Great Recession, joblessness has remained so critically elevated among African Americans that it is challenging longstanding ideas about what it takes to find work in the modern-day economy.

via Black Unemployment At Depression Level Highs In Some Cities.

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April 27, 2011 · 8:12 pm

Debt proposals: The Courageous Progressive Caucus Budget | The Economist

I’m glad to see this proposal finally getting some attention….

This is the one that makes real sense and has the right priorities….

And this is from “The Economist” which is not exactly a left-wing publication…

Mr Miller’s column notes that “the  Congressional Progressive Caucus plan wins the fiscal responsibility derby thus far; it reaches balance by 2021 largely through assorted tax hikes and defense cuts.” Which is pretty interesting. Have you ever heard of the Congressional Progressive Caucus budget plan? Neither had I. The caucus’s co-chairs, Raul Grijalva of Arizona and Keith Ellison of Minnesota, released it on April 6th. The budget savings come from defence cuts, including immediately withdrawing from Afghanistan and Iraq, which saves $1.6 trillion over the CBO baseline from 2012-2021. The tax hikes include restoring the estate tax, ending the Bush tax cuts, and adding new tax brackets for the extremely rich, running from 45% on income over a million a year to 49% on income over a billion a year.

Mr Ryan’s plan adds (by its own claims) $6 trillion to the national debt over the next decade, but promises to balance the budget by sometime in the 2030s by cutting programmes for the poor and the elderly. The Progressive Caucus’s plan would (by its own claims) balance the budget by 2021 by cutting defence spending and raising taxes, mainly on rich people. Mr Ryan has been fulsomely praised for his courage. The Progressive Caucus has not.

I’m not really sure what “courage” is supposed to mean here, but this seems precisely backwards. For 30 years, certainly since Walter Mondale got creamed by Ronald Reagan, the most dangerous thing a politician can do has been to call for tax hikes. Politicians who call for higher taxes are punished, which is why they don’t do it. I’m curious to see what adjectives people would apply to the Progressive Congressional Caucus’s budget proposal. But it’s hard for me to imagine the media calling a proposal to raise taxes “courageous” and “honest”. And my sense is that the disparate treatment here is a structural bias rooted in class.

via Debt proposals: The courageous Progressive Caucus budget | The Economist.

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April 27, 2011 · 8:23 am

China’s Economy to Surpass that of the US by 2016

And Americans- who had to buy a bunch of cheap crap at Wal Mart have no one but themselves to blame….

Ever since Americans decided it was better to have a bunch of junk than a few nice, high quality things, we’ve been headed in this direction…

When price becomes the most important thing and people elsewhere can make it cheaper, well, you do the math…

This is really as much- if not more of- a failure of the American Value system as it is of American Politics…

From  Yahoo News and MarketWatch:

The International Monetary Fund has just dropped a bombshell, and nobody noticed.

For the first time, the international organization has set a date for the moment when the “Age of America” will end and the U.S. economy will be overtaken by that of China.

And it’s a lot closer than you may think.

According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016 — just five years from now.

Put that in your calendar.

It provides a painful context for the budget wrangling taking place in Washington right now. It raises enormous questions about what the international security system is going to look like in just a handful of years. And it casts a deepening cloud over both the U.S. dollar and the giant Treasury market, which have been propped up for decades by their privileged status as the liabilities of the world’s hegemonic power.

According to the IMF forecast, which was quietly posted on the Fund’s website just two weeks ago, whoever is elected U.S. president next year — Obama? Mitt Romney? Donald Trump? — will be the last to preside over the world’s largest economy.

Most people aren’t prepared for this. They aren’t even aware it’s that close. Listen to experts of various stripes, and they will tell you this moment is decades away. The most bearish will put the figure in the mid-2020s.

via imf-bombshell-age-america-end-marketwatch: Personal Finance News from Yahoo! Finance.

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April 27, 2011 · 8:18 am

House Republicans Under Attack on Medicare Overhaul – NYTimes.com

Hopefully, the GOP has just committed Political suicide….

It’s starting to sound like it….

In central Florida, a Congressional town meeting erupted into near chaos on Tuesday as attendees accused a Republican lawmaker of trying to dismantle Medicare while providing tax cuts to corporations and affluent Americans.

At roughly the same time in Wisconsin, Representative Paul D. Ryan, the architect of the Republican budget proposal, faced a packed town meeting, occasional boos and a skeptical audience as he tried to lay out his party’s rationale for overhauling the health insurance program for retirees.

In a church theater here on Tuesday evening, a meeting between Representative Allen B. West and some of his constituents began on a chaotic note, with audience members quickly on their feet, some heckling him and others loudly defending him. “You’re not going to intimidate me,” Mr. West said.

After 10 days of trying to sell constituents on their plan to overhaul Medicare, House Republicans in multiple districts appear to be increasingly on the defensive, facing worried and angry questions from voters and a barrage of new attacks from Democrats and their allies.

The proposed new approach to Medicare — a centerpiece of a budget that Republican leaders have hailed as a courageous effort to address the nation’s long-term fiscal problems — has been a constant topic at town-hall-style sessions and other public gatherings during a two-week Congressional recess that provided the first chance for lawmakers to gauge reaction to the plan.

via House Republicans Under Attack on Medicare Overhaul – NYTimes.com.

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