Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Tuesday, January 12, 2010

The Settling of America.

Did you know that in 1950 nearly one-fifths of Americans moved every year? Considering the housing market of then and the market as it is now, it makes sense. Our men had been off to wars for many years and only recently had they returned to a home of seemingly endless opportunity. But when our boys returned from war, we were missing something fundamental--houses. So our boys either shacked up with the parents or moved in with friends until a house was built.

These lack of constraints provided an opportunity for men and women to go to anywhere in the country. Without responsibilities--or even home--to tie them down, they were very easily able to re-create a new life in a different part of the country.

Right now the nation's mobility rate is the lowest it's been since pre-World War II, indicating that there has been a huge change in how our culture is operating. What will the long-term implications of this new mentality mean upon society? What does this mean from an economic standpoint? Some of the leading sociologists and economics have provided their commentary on such topics, and here is a snippet of their thoughts. The full article is available here.

  • Katherine S. Newman, professor of sociology and public affairs at Princeton University, is author of “The Missing Class.”
One of the virtues of being stuck is that we can continue to rely on the friends and family nearby to help us get through hard times. “Social capital,” the stock of trust and support we draw on in daily life, is especially important when families are under stress. A child care emergency can be patched up if grandma is next door rather than 2,000 miles away. Borrowing $50 to get by is easier if you have someone close to turn to and much harder if you are a newcomer.

Crime tends to be lower in communities where people know each other well enough to intervene when they see something amiss on the street. This may help to explain why, despite very high unemployment and a great deal of social stress, we are seeing record low crime rates. Divorce often declines as well because people just cannot afford to stretch the same income over two separate households. Staying put may mean that we retain the strength of our ties to one another.

Of course if staying put means doubling up -– packing in relatives who have nowhere else to go -– frayed tempers can be combustible. Americans at the bottom of the income structure lack the reserves needed to hold tight, so they have to move in with the (only slightly more) fortunate members of their families.

During the Great Depression, my grandfather was the only person in an extended family of 13 who had a job. They piled in with one another and were fortunate they could lean on him, but nobody remembers that time as a joyous reunion of a big happy family. It was hard on everyone, just as it is hard on poorer Americans now.

  • Lawrence F. Katz is a professor of economics at Harvard University. He is the author (with Claudia Goldin) of “The Race between Education and Technology.”

Relative to those in other nations Americans have always been highly mobile and their moves in pursuit of new opportunities have enhanced U.S. economic dynamism. High rates of geographic labor mobility have allowed the United States to recover more rapidly from adverse economic shocks and to have smaller regional unemployment differences than European nations with less mobile work forces.

But American geographic mobility has declined over the last two decades and has fallen sharply in the Great Recession since 2007. Part of the decline is a natural consequence of the aging of baby boomers. In addition, geographic moves can be expected to decrease temporarily in a deep recession. Nevertheless, several factors make the decline in mobility in this recession worrisome and may contribute to an extended jobless recovery.

First, large declines in housing prices in many regions generate a lock-in effect, causing homeowners with negative equity to hesitate to sell their houses, thereby reducing mobility from distressed areas.

Second, the subprime crisis has created economic distress in typically fast-growing areas, such as Florida, California, and Nevada, further slowing the labor mobility to expanding regions that ordinarily helps drive U.S. job recoveries. Third, lingering credit market problems, especially for potential new start-ups, hinder job creation in economically vibrant locales slowing labor mobility to these areas.

Finally, greater educational attainment has been the traditional way young Americans acquire the skills demanded by growing occupations and regions. Greater federal aid to higher education may be necessary, given the budgetary problems of most states and many families, to maintain access and allow young Americans to gain the skills to move in pursuit of their American dreams.

  • William H. Frey is a demographer and a senior fellow in the Metropolitan Policy Program at the Brookings Institution.
America has long been one of the most mobile countries on the planet. There is no doubt in my mind we will return to more normal migration levels, though I don’t foresee it anytime soon. The return will be especially delayed for long-distance migration, which has plummeted so low that Florida and Nevada are now attracting fewer in-migrants than those moving out. Long distance migration has sunk to historic lows because it is facing a double whammy — downturns in the job market and a near frozen housing market.
I have always imagined myself as an adventurer hoping to experience life in cities all over the world. But if the economics are not in place for such a lifestyle, what is the alternative like?

I don't particularly think living in one area for your entire life is necessarily bad, I just feel it can be somewhat limiting. The best way to develop yourself is through exposure, and seeing the world through the eyes of someone else is significant for developing your own personal understanding of the world. That is why traveling and city planning are so important to me. I want to see the world through the eyes of the Japanese, the Russians, the Canadians...I want to see the world they see and pose it against the world I see. What are the differences? What do they value that I overlook? What do I value that has little-to-no importance to them?

To me, this is the best way to grow and develop.

Thursday, January 7, 2010

Hardest and Easiest Cities to Find Jobs.

Everyone knows the job market is difficult right now. However, depending on what part of the country you are in, the market could be in a completely different condition than the general 10% unemployment rate the United States is facing. Job Search Engine JuJu has done the research and shown what particular cities have been hit worst--and which have had the softest fall.

Hardest Cities to Find a Job:
10) Orlando, Florida (Unemployed per advertised job: 8.92%)
9) Providence, Rhode Island (9.23%)
8) Birmingham, Alabama (9.62%)
7) Los Angeles, California (10.43%)
6) Sacramento, California (10.97%)
5) Las Vegas, Nevada (11.85%)
4) Riverside, California (12.35%)
3) Miami, Florida (14.47%)
2) St. Louis, Missouri (17.98%)
1) Detroit, Michigan (20.76%)
Easiest Cities to Find a Job:
10) Austin, Texas (Unemployed per advertised job: 4.30%)
9) San Antonio, Texas (3.84%)
8) Denver, Colorado (3.81%)
7) Hartford, Connecticut (3.60%)
6) Salt Lake City, Utah (3.35%)
5) New York City, New York (3.35%)
4) Boston, Massachusetts (3.11%)
3) Baltimore, MD (2.91%)
2) San Jose, California (2.68%)
1) Washington, DC (1.87%)
What is striking to me is that it's not the rust belt that is dominating the worst job markets, it's the sun belt. Perhaps it's because the rust belt has had its share of difficulties for quite some time and has already taken strides to reinvent new economies for their cities (Cleveland as a healthcare city, Pittsburgh as an insurance city, etc.). The sun belt cities have enjoyed extreme growth over the past few decades, and much of that growth is founded on tourism and travel. But with the economy tightening people's extravagant expenditures, suddenly these areas are hit--and hit hard, too.

Anyone surprised to see that the capital has the lowest unemployment? There will always be the government, no matter how much we may dismay about it. Regardless, what needs to be remembered is the old adage, "This too will pass". While it is difficult right now, and the whole country is feeling it, what should be noted is that this current economic time is cultivating a new society for us. How many of you spent thousands on Christmas presents this year? Probably very few. While in the past the focus was on consumerism and stuff, this year I noticed with all of my holiday interactions the focus was on people. I received more cookies, food and cards than I have ever received before. And I hope this trend continues. I hope our society shifts to people-focused rather than stuff-focused.

It only takes an economic recession to get the American people to finally make a much needed change.

Wednesday, March 11, 2009

Good Day for the Dow!


Up is ALWAYS good! What a fantastic day for Wall Street! :-P

Tuesday, March 10, 2009

Drunk and Bitter.



I'm pretty sure that made my day. Where does one find a hat like that? I think I have my Halloween costume DONE.

Thursday, March 5, 2009

Why, Oh Why?!

Stop it Dow Jones! No, really, stop it! Stop falling! Now! No more! I can't take it any longer! Stop stop stop!



Why won't you listen to me? Stop stop stop!

Monday, February 23, 2009

A Comment for the Whiners.

If you don't like the Recovery Act that President Obama passed, fine--but read it. I'm sick of listening to people bitch about how terrible of a plan it is yet they haven't even read the front page of the actual document.

Granted, the above PDF is a guide, not the actual act. But at 62 pages it's enough to understand what the plan entails. After reading it, if you don't like it--no problem. Just be informed, which is a rarity among people who like to point fingers.

Tuesday, February 10, 2009

Update: Stimulus Projects.

I have long been critical of the lack of information regarding the Economic Stimulus Plan. Every time President Obama has thrown out numbers I have been waiting for the cold, hard facts regarding these numbers.

Thanks to Stimulus Watch, I can finally feel satisfied. This website is tracking the spending plans of the stimulus by state or city and by project type:
The scope of this stimulus package is terrifying. I'm not sure whether I'm afraid of the cost or afraid of the implications--the revelation of just how bad the American infrastructure really is.

Monday, February 9, 2009

Stimulus Plan: What Does it Mean for Transportation?

President Obama's stimulus plan has passed in the Senate, 61-36. With the hurdle of selling the bill to congress still before us, the topic I am most concerned about is transportation. The Senate Bill and the House bill differ on exact allocations of the funds for transportation projects and repairs, so I'm crossing my fingers that these projects don't get slashed from the bill in order to appeal to Congress. Perhaps the optimistic mentality should be to feel fortunate there are at least plans to improve our horribly inefficient transit systems in The United States.

Here is the basic plan (for now):
  • $850 million for Amtrak to achieve a state of good repair (Senate Version)
  • $2.25 billion for states to build and expand passenger rail (Senate)
  • $5.5 billion for a flexible surface transportation program for roads, rail and transit (Senate)
  • $12 billion for transit (House); $9 billion for transit (Senate)
For now these are just numbers and promises. Fortunately the Obama Administration is setting up Recovery.gov, a website for Americans to watch exactly how this stimulus package is being spent. I am so glad they are doing this. What a shock it is to have a Presidential Administration we can trust and hold accountable for the promises they've made us.

Shocking: New York Ain't Cheap!

Manhattan is in trouble. Research from the Center for an Urban Future has revealed that New York City is simply to effing expensive.
For much of its history, New York City has thrived as a place that both sustained a large middle class and elevated countless people from poorer backgrounds into the ranks of the middle class. The city was never cheap and parts of Manhattan always remained out of reach, but working people of modest means—from forklift operators and bus drivers to paralegals and museum guides—could enjoy realistic hopes of home ownership and a measure of economic security as they raised their families across the other four boroughs. At the same time, New York long has been the city for strivers—not just the kind associated with the highest echelons of Wall Street, but
new immigrants, individuals with little education but big dreams, and aspiring professionals in fields from journalism and law to art and advertising.

In recent years, however, major changes have greatly diminished the city’s ability to both retain and create a sizable middle class. Even as the inflow of new arrivals to New York has surged to levels not seen since the 1920s, the cost of living has spiraled beyond the reach of many middle class individuals and, particularly, families. Increasingly, only those at the upper end of the middle class, who are affluent enough to afford not only the sharply higher housing prices in every corner of the city but also the steep costs of child care and privateschools, can afford to stay—and even among this group, many feel stretched to the limits of their resources. Equally disturbing, even in good times, the city’s economy seems less and less capable of producing jobs that pay enough to support a middle class lifestyle in New York’s high-cost environment.

The current economic crisis, which has arrested and even somewhat reversed the skyrocketing price of housing, might offer short-term opportunities to some in the market for homes. But the mortgage meltdown and its aftermath will not change the underlying dynamic: over the past three decades, a wide gap has opened between the means of most New Yorkers and the costs of living in the city. We have seen this dynamic play out even during the last 15 years, as the local economy thrived and crime rates plummeted.

Despite these advances, large numbers of middle class New Yorkers have been leaving the city for other locales, while many more of those who have stayed seem permanently stuck among the ranks of the working poor, with little apparent hope of upward mobility.

This is a serious challenge for New York in both good times and bad. A recent survey found the city to be the worst urban area in the nation for the average citizen to build wealth. For the first time in its storied history, the Big Apple is in jeopardy of permanently losing its status as the great American city of aspiration.
New York Daily News summarized the report with these findings:
  • A New Yorker would have to make $123,322 a year to have the same standard of living as someone making $50,000 in Houston.
  • In Manhattan, a $60,000 salary is equivalent to someone making $26,092 in Atlanta.
  • You knew it was expensive to live in Manhattan, but Queens? The report tagged Queens the fifth most expensive urban area in the country.
  • The average monthly rent in New York is $2,801, 53% higher than San Francisco, the second most expensive city in the country.
  • New Yorkers paid about $34 a month for phone service in 2006. In San Francisco, similar service cost $17 a month.
  • Home heating costs have jumped 125% in the past five years and are up 243% since 1998.
  • Full-time day care costs can run up to $25,000 a year for one child, depending on the neighborhood, or about as much as some college tuitions.
  • Meanwhile, wages in the city have remained mostly flat in all boroughs but Manhattan — even during the boom years from 2003 to 2007.


I have never desired to live in New York, which is strange considering how much I love enormous cities. NYC is just too much for me though. I'm quite satisfied with the Mini-apple over the big apple :-P.

Friday, February 6, 2009

The Results Are In!

And the economy is not doing any better!
WASHINGTON (Reuters) - U.S. job losses accelerated in January as 598,000 were slashed, the most in 34 years, and the unemployment rate soared to a 16-year high, pressuring lawmakers to act quickly to counter a deepening recession.

"The economy is just falling into oblivion and it will get worse," said Greg Salvaggio, vice president for trading at Tempus Consulting in Washington. The Senate resumed debate less than two hours after report was issued on a package of measures to spur the economy that could cost $800 billion or more.

Democratic leaders were pushing for a vote later on Friday on stimulus measures. Republican leaders branded the proposals as excessive and bound to drive up U.S. deficits but President Barack Obama wanted a speedy vote to meet the economic crisis head-on.

Last month's job cuts were the most severe since December 1974, while the unemployment rate hit 7.6 percent, its highest level since September 1992. The jobless rate, which stood at a low 4.9 percent a year ago, has jumped a full percentage point over just the last three months.

Ouch. As much as I am ready to graduate and be done with school, I'm kind of glad I still have another year. Hopefully by then we'll be coming out of this awful recession. Hopefully.

Monday, January 12, 2009

My Resume. (Click to Embiggen)

So, this week I'm speaking with literally 20 different companies about possible internships over the summer. I've tweaked my resume and I'd like to share it with you, online world. (Well, except a few things like where I live and where I work. This blog sometimes gets 300 hits a day! Some of you might be crazy and try to visit me. So I blocked some things off. Please don't take it personally.)

I'll take tips, suggestions and of course--jobs! :-P



(Click on the image to see it)

Things are DOWN!



Ouch. What a way to close for the day.

Monday, December 8, 2008

A Message from Barack Obama.

Top Cities for Business.

The Wall Street Journal's MarketWatch released it's annual report of the Best and Worst Cities to do business in. The number one spot? Oh, come on guys, you should know this by now...Minneapolis!


Other top cities include Boston, Denver, Columbus and Washington D.C.. A mixed economy will always thrive in a city over a concentrated one. Look at Detriot (and no, that's not a misspelling): the entire city is based on cars, and it's facing 10% unemployment even with the possibility of a bailout. On the flip side, Columbus' main industries are healthcare, education, Government and insurance, four staples that aren't going anywhere. The same can be said for Minneapolis:

The [Twin Cities] area has managed to attract enough talent to support [UnitedHealth Group Inc. (UNH), the country's biggest health insurer], as well as such legacy companies as industrial conglomerate 3M Co. (MMM) , food heavyweight General Mills Inc. (GIS) , insurer Travelers Cos. (TRV) and financial powerhouse U.S. Bancorp. (USB)

The Twin Cities are also home to retail giants Target Corp. (TGT) and Best Buy Co. (BBY), medical-device makers Medtronic Inc. (MDT) and St. Jude Medical (STJ), and big private firms Cargill and CHS. Cargill has replaced Kansas chemical maker Koch Industries at the very top of Forbes' rankings of the nation's biggest private firms.

Many of the region's companies are home-grown and have thrived in the environment. UnitedHealth, for example, was started in 1974 and now boasts $80 billion in annual sales.

Other companies have deeper roots, such as Traveler's in St. Paul, which got its start in 1853. It's been sustained in part by a highly ranked school system and the network of higher-education providers in the region.

"It's a very educated workforce," said Andy Bessette, Traveler's chief administrative officer. "The people here, the school systems, are very good."

Much like Columbus, Minneapolis has a wide array of industries that aren't going anywhere (unless people stop eating.)

Tuesday, December 2, 2008

Art Laffer is a Laugher!

Besides poor performance, what do Merrill Lynch, Bear Stearns and Morgan Stanley all have in common? Well, FOX news recommended them as "astonishingly well-run companies". That was just a year ago when Merrill Lynch was trading at $98 a share; today, at the time of this writing, it's at $11.56 a share. In that same broadcast they recommended Goldman Sachs at $175.00 per share, calling it the "Dolce-Gabana" and the "Creme de la Creme" of Wall Street. Today, it is at $65.00 per share. They said homeprices would be up 10% and they even said that 2008 would be the perfect storm for investing, calling the subprime crisis a "tiny problem". These nutcases were even stupid enough to recommend Washington Mutual as the best stock of 2008. To add to the hilarity (and insanity), they even had the gall to place an image of Champagne besides this proclamation!

(For some point of reference, Washington Mutual's failing is considered the largest bank failure in the history of the world. This bank failure is so astronomical in scope that the previous ten bank failures combined are not as big as WaMu going under.)

Peter Schiff is the only person among this group of clowns that realized the coming crisis. He is literally laughed at by Art Laffer, the idiot who convinced Reagan to cut taxes only for the rich and screw the rest of the country. They call Schiff off base, yet turns out, he was right. Schiff says it perfectly: "The basic problem with the US economy is we have too much consumption and borrowing and not enough production and savings. And what's going to happen is the American consumer is basically going to stop consuming...and when you have the economy at 70% consumption, you can't address those imbalances without a recession."

Watch the video, if you can do it.

Tuesday, November 25, 2008

House Prices Rise in Des Moines.

The end of the housing crisis? Hardly. But this is still good news for Des Moines.
The Des Moines metropolitan area was one of 28 areas nationwide to see its median home sale prices climb in the third quarter, squeaking 1 percent higher to $155,400, a National Association of Realtors report showed on Tuesday.

Median sale prices fell in Cedar Rapids, Council Bluffs-Omaha, Davenport, and Waterloo-Cedar Falls. In all, 120 metro areas nationwide saw price declines. Four had no change.The report also showed that sales of Iowa's existing homes for the third quarter fell 16 percent, more than double the national decline.

Iowa's sharp sales drop has some real estate leaders wondering whether the Iowa housing market has hit bottom.

"We're at a turning point in a number of markets," said Paul Bishop, the association's research managing director. "There are a lot of uncertainties in the economy, but it looks like we could be along the bottom."

Nationwide, home sales fell 7.7 percent to 5.04 million, with declines in 32 states.
Well go Des Moines! At least some cities are doing well.

Monday, November 3, 2008

Capitalism Wins Again!

Remember that thing called "The Space Race"? Although not everyone believes we won it, in the minds of the sane we did. And what a feat that was! Our country made it to the moon first. Americans were the triumphant innovators of the day! We sure showed those nasty Communists that Capitalism always wins! Only problem is Russia might beat us at something else, something far more important--transportation here on Earth.

Spain to help build Russian railways.
Russian Railways is seeking Spanish expertise in a multi-billion dollar investment project. Spain is ready to help build high-speed railways in mountainous areas and supply trains with an automatic gauge changing system.

Welcomed by the King of Spain and the country’s top officials, the head of Russian Railways, Vladimir Yakunin, went to Madrid as an old friend and a trusted partner.

Russian Railways has a multi-billion dollar investment plan for rail infrastructure - a vital project in times of economic turmoil, according to Yakunin.

“The problem is not only the liquidity of banks, but also the support of the demand – the market, the real economy. So, because of that, we consider it is absolutely essential to keep the infrastructural investment programmes in tact,” he says. Russian authorities are considering co-operation with Spain’s INECO to build a high speed railway that will carry passengers from Moscow to Sochi in less than 24 hours.

As for international cargo, even high-speed trains have to cope with a variation of track gauge among different countries. Spain has a solution - Talgo carriages that can alter the gauge on the go.Mario Oria, Talgo’s export and marketing manager says: “We are hoping that the Russian market becomes the biggest in that share. Ideally, we’d be talking about 20-30 % of overall sales.”

Talgo’s trains can boost cargo volumes from Russia to the EU countries and significantly cut delivery times. Russia has already finished testing the Talgo system and is likely to buy the first ten trains, worth 15 million euros each, as soon as 2011.

Wow, if Moscow gets High-Speed Rail before Los Angeles or San Francisco, I think Ronald Reagan will dig himself out of his grave and begin writing an apology to the American people. (As if he shouldn't already do that, but that's another story...)

(Via Trains for America)

Sunday, October 26, 2008

UN Cites 'Dire Warning' For Social Inequity in The United States.

When I think of New York, I like to imagine it as a city that stands analagous to no other. Is there any other place in the world quite like it?

Well according to a report by The United Nations, New York does have a few commonalities, and they're not what you'd expect--Nairobi, Kenya Abidjan and Ivory Coast.

In a survey of 120 major cities, New York was found to be the ninth most unequal in the world and Atlanta, New Orleans, Washington, and Miami had similar inequality levels to those of Nairobi, Kenya Abidjan and Ivory Coast. Many were above an internationally recognised acceptable "alert" line used to warn governments.

"High levels of inequality can lead to negative social, economic and political consequences that have a destabilising effect on societies," said the report. "[They] create social and political fractures that can develop into social unrest and insecurity."

According to the annual State of the World's cities report from UN-Habitat, race is one of the most important factors determining levels of inequality in the US and Canada.

"In western New York state nearly 40% of the black, Hispanic and mixed-race households earned less than $15,000 compared with 15% of white households. The
life expectancy of African-Americans in the US is about the same as that of people living in China and some states of India, despite the fact that the US is far richer than the other two countries," it said.

Disparities of wealth were measured on the "Gini co-efficient", an internationally recognised measure usually only applied to the wealth of countries. The higher the level, the more wealth is concentrated in the hands of fewer people.

"It is clear that social tension comes from inequality. The trickle down theory [that wealth starts with the rich] has not delivered. Inequality is not good for anybody," said Anna Tibaijuka, head of UN-Habitat, in London yesterday.


I love the jab at Reaganomics. I was raised a strong fiscal and religious conservative, so I find it amusing how over and over again the free market proves not to be what Milton Friedman promised. I love Capitalism, but not what has happened here in America.

Thursday, October 23, 2008

Shocked!

Al Greenspan is "shocked" at credit meltdown. "I had no idea I could screw up America so easily!"

He says he is only "partially" responsible.

Yeah, Thanks Al.

Sunday, October 19, 2008

Aww, Crap.

Thanks Bush. Your crummy administration has led the American Society of Civil Engineers to grade America's infrastructure at a "D". According to their report, it would take $1.6 Trillion dollars over the next five years in order to fix all of our bridges, highways and transit lines. The cause of this problem? Reducing the federal funds for infrastructure to about 3.5% of all non-defense spending. (Mere pennies for our Government.)

The Free Market wins again!