During the three-year period ending in 2009, Salisbury’s poverty rate of 16% was about 3% higher than the national rate. In the following three-year period between 2010 and 2012, the city’s poverty rate was approaching 30%. Salisbury has traditionally relied heavily on the manufacturing sector, particularly textiles and fabrics. In recent decades, however, manufacturing activity has declined significantly and continues to do so. Between 2010 and 2012, manufacturing jobs in Salisbury — as a percent of the workforce — shrank from 15.5% to 8.3%.
Friday, December 20, 2013
WARNING: Americans Are Re-leveraging, To Pay For Food, Education, Medical Bills, And Taxes While Home Sales Tumble, Jobless Claims At Near Nine-month High, Interest Rates Skyrocket
Get ready for another hidden Obamacare tax…
Stephen Moore, economist and Wall Street Journal contributor, discussed the hidden Obamacare tax that will take effect in two weeks.The hidden Obamacare tax will cost consumers $100-$500 a year and will take effect on January 1, 2014.
Schwarzman Added, “When You Have An Economy That Grows At 2.5 Percent, 2.75 Percent, And A Stock Market That Goes Up 27 Percent, Seems Somewhat Disconnected.”
There’s a disconnect between modest economic growth and the roaring stock market, Blackstone Group Chairman and CEO Stephen Schwarzman told CNBC on Thursday.“The economy is improving pretty modestly. I think there’s a lot of bullishness that feeds on itself,” he said in a “Squawk Box” interview. “The real world is moving ahead. But it’s not barreling ahead.”Schwarzman added, “When you have an economy that grows at 2.5 percent, 2.75 percent, and a stock market that goes up 27 percent, seems somewhat disconnected.”He won’t predict whether a correction in stocks is coming but did say that “it seems a low probability that markets continue going up at 27 percent.”http://www.cnbc.com/id/101279083
Is the U.S. Government Changing the Amount In People’s Financial Accounts and Manipulating Financial Systems with Its Offensive Cyber Capabilities?
Official White House Spying Panel Implies that It Might Be …
(1) Governments should not use surveillance to steal industry secrets to advantage their domestic industry;
(2) Governments should not use their offensive cyber capabilities to change the amounts held in financial accounts or otherwise manipulate the financial systems ….
Does this NSA report recommendation imply that NSA is conducting offensive cyber attacks against financial systems?
BERNANKE ROCKS THE MARKETS
Fed Announces Taper to Begin in January
The December FOMC meeting policy announcement has been issued: The Fed has decided to slightly scale back its gargantuan monthly bond-purchases by $10 billion per month. According to the policy announcement: The housing sector remains a problem; Inflation is still too low for the Fed’s taste as the Fed’s inflation target remains 2%, and anything below that number ”could pose risks to economic performance.” For the Fed, everything hinges upon an improved labor market outlook. Bernanke added that current political gridlock over America’s most pressing economic issues is “restraining” economic growth. (Fiscal policy vs. monetary policy ‘unbalanced.’) So what is Bernanke’s solution? It is what it always was: “appropriate policy accommodation.” (Translation: Perpetual easy money policies.)
Bernanke’s Speech in 90 Seconds
- Fed’s “Non-Tightening Taper” Slams Gold Prices. Gold drops below $1,200 for first time since June.
- Another leaked FOMC release? Gold, stocks moved dramatically a full 50 seconds before the FOMC statement was officially released.
- Jerry Robinson on the Fed Taper: “Yesterday’s taper by the Fed took me by surprise. However, if you read the full policy statement closely, you will discover that this taper is utterly meaningless, which partially explains why stocks roared higher immediately after the announcement.”
But Bad Government Policies Are Making Inequality Worse By the Day
The growing gap between the richest Americans and everyone else isn’t bad just for individuals.
It’s hurting the U.S. economy.
“What you want is a broader spending base,” says Scott Brown, chief economist at Raymond James, a financial advisory firm. “You want more people spending money.”
“The broader the improvement, the more likely it will be sustained,” said Michael Niemira, chief economist at the International Council of Shopping Centers.
Economists appear to be increasingly concerned about the effects of inequality on growth. Brown, the Raymond James economist, says that marks a shift from a few years ago, when many analysts were divided over whether pay inequality was worsening.
Now, he says, “there’s not much denial of that … and you’re starting to see some research saying, yes, it does slow the economy.”
Krugman says that he used to dismiss talk that inequality contributed to crises, but then we reached Great Depression-era levels of inequality in 2007 and promptly had a crisis, so now he takes it a bit more seriously.
The discussion has shifted enough to produce a backlash from pundits arguing that inequality isn’t that big a deal.
The best argument for putting inequality on the back burner is the depressed state of the economy. Isn’t it more important to restore economic growth than to worry about how the gains from growth are distributed?
Well, no. First of all, even if you look only at the direct impact of rising inequality on middle-class Americans, it is indeed a very big deal. Beyond that, inequality probably played an important role in creating our economic mess, and has played a crucial role in our failure to clean it up.
Start with the numbers. On average, Americans remain a lot poorer today than they were before the economic crisis. For the bottom 90 percent of families, this impoverishment reflects both a shrinking economic pie and a declining share of that pie. Which mattered more? The answer, amazingly, is that they’re more or less comparable — that is, inequality is rising so fast that over the past six years it has been as big a drag on ordinary American incomes as poor economic performance, even though those years include the worst economic slump since the 1930s.
And if you take a longer perspective, rising inequality becomes by far the most important single factor behind lagging middle-class incomes.
Beyond that, when you try to understand both the Great Recession and the not-so-great recovery that followed, the economic and above all political impacts of inequality loom large.
Inequality is linked to both the economic crisis and the weakness of the recovery that followed.