Or choose individually:
- Your Parents Would Be Stunned At The Taxes You’re Paying
- Dear Bankers, You Better Pray That Regulation Doesn’t Get Passed
- 49 Out Of 50 State Economies Are Still Underwater
- If U.S. Drilling Is Now Toast, Then These High-Paying Jobs Are Never Coming Back
- Now The Oil Slick Is A $33 Billion Disaster
Households across America are spending more on taxes per year than they ever have in history. The inflation adjusted numbers point to a $30,000 growth in household spending, per year, since 1965.
The numbers suggest that federal, state and local spending have been the drivers of tax growth, rather than one part of the government being especially profligate.
(This tax data point comes from The Heritage Foundation. Check out their research here.)
With new financial regulations currently being debated in the Senate, the likelihood of an increase in banking sector constraints is high.
According to a paper written by academics Thomas Philippon and Ariell Reshef, as regulation of the financial sector has declined, pay for financial sector workers has increased.
Financial deregulation is judged to be the removing of bank branching rules, the end of Glass-Steagall, the removal of interest rate ceilings, and the end of the separation of banks and insurance companies.
If those separations return, financial workers are likely to see their pay decline as a result.
Chart taken from Simon Johnson's presentation to the Institute for New Economic Thinking:
49 out of 50 U.S. states are still showing less economic activity than a year ago, based on February 2010 coincident economic indicators from the Federal Reserve of Philadelphia. The chart here is organised from top to bottom, from the most growth in economic activity to the largest declines in economic activity.
States like West Virginia (WV), Maryland (MD), Idaho (ID), and Wyoming (WY) are the worst off year over year. Their February 2010 economic activity remained 13.5%, 6.3%, 6.3%, and 6.2% lower year over year. Thus their economies, along with those of another 45 states, all the red ones, are all underwater on an annual basis.
North Dakota (ND) is the only state to currently have a higher level of economic activity year over year. Its February 2010 economic activity was 1.1% higher than February 2009, as shown by the green dot in the chart here.
Moreover, 28 out of 50 states even exhibited less economic activity in February 2010 than just three months earlier (not directly shown here). This means they have been deteriorating most recently as well.
In fact, the chart here is organised from left to right by the change in economic activity in the last three months (February 2010 vs. November 2009).
Thus West Virginia (WV), Maryland (MD), Montana (MT), and Delaware (DE), have seen their economic activity fall since November 2009 the most, given that they are the left-most dots. For example, West Virginia's economic activity fell 3.1% vs. November 2009 (percentage not shown). In contrast, Michigan has done the best most recently, given that it is the right-most dot, rising 1.5% vs. November 2009 (percentage not shown).
Net-net what this tells us is that 49 out of 50 state economies are still underwater on a one year basis, and 28 out of 50 are even still falling vs. November.
Total U.S. oil gas extraction employment was just starting to come back over the last few years, after collapsing from its peak in the early 1980's, as shown below. Most recently, there had particularly been a boom in oil and drilling employment within the U.S. gulf region, though this boom was partially reversed by the recent financial crisis. (not shown)
Given the recent rig explosion in the Gulf of Mexico, and the vast environmental damage it has incurred due to uncontrolled oil pouring out of the rig's damaged well, it is now far more feasible that America could get cold feet in its effort to expand offshore oil and gas exploration. For example, when asked about her reaction to offshore drilling after the new Transocean spill, Homeland Security Secretary Janet Napolitano responded that 'Everything is on the table,' according to CBSNews reporter Mark Knoller.'
Let's just say that if offshore oil and gas exploration efforts are curtailed, then A) it will be a lot more difficult for U.S oil and gas drilling employment to continue rising as it had over the last few years and B) we could even be in for a new down-leg in this graph should onshore employment opportunities prove insufficient to compensate.
The Deepwater Horizon explosion has been a nightmare for regulators, energy companies, and cleanup crews this week. As the situation continues to decline, oil service companies are taking a beating.
Our chart here shows companies involved or affected by the Deep Water incident and the amount of market cap that they've lost since April 22nd, when the incident was first reported in the media. Altogether the combined amount of market cap lost totals a whopping $33.2 billion.
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