Posts Tagged ‘chart’

lives

The third part of “Children of the Recession,” UNICEF’s report on “the impact of the economic crisis on child well-being in rich countries,” focuses on Gallup Poll data about people’s experiences and perceptions of the most recent crisis of capitalism.*

In 18 of the 41 countries, three or more of these indicators reveal rising feelings of insecurity and stress from 2007 to 2013. The most severely affected countries—including the United States—are clustered at the bottom of the table.

In terms of its impact on personal experiences and perceptions, the Second Great Depression is certainly not over. In 13 countries—again, including the United States—negative responses to three or four questions were still rising between 2011 and 2013, particularly in countries such as Cyprus, Greece, Ireland, Israel, the Netherlands, Spain and Turkey.

 

*Due to data availability, the numbers in the table refer to the population in general, not to families with children. Countries are ranked based on their average score across the four indicators, each of which measures how responses changed between 2007 and 2013. The highest number indicates the sharpest change. Column 5 indicates how many of the responses to the four were negative over the full period.

NEET

According to UNICEF, the latest crisis of capitalism has hit 15-24 year olds especially hard, with the number of young people who are not participating in education, employment, or training rising dramatically in many countries. In the European Union 7.5 million young people (almost equal to the population of Switzerland) were classified as NEET in 2013—nearly a million more than in 2008.

The largest absolute increases were in Croatia, Cyprus, Greece, Italy, and Romania, all with relative changes of around 30 per cent or higher.

Of the OECD countries that are not in the European Union, the United States saw the largest increase in the NEET rate (from 12 to 15 percent), followed by Australia (9.9 to 12.2 percent).

As the authors of the UNICEF report explain,

Unemployment among adolescents and young adults is a significant long-term effect of the recession. Among those aged 15–24, unemployment has increased in 34 of the 41 countries analysed. Youth unemployment and underemployment have reached worrying levels in many countries.

Even when unemployment or inactivity decreases, that does not necessarily mean that young people are finding stable, reasonably paid jobs. The number of 15- to 24-year-olds in part-time work or who are underemployed has tripled on average in countries more exposed to the recession. Contract work has become more common, contributing to the general precariousness of labour markets.

These young people, because of the conditions of unemployment and precarious employment that have been imposed on them, constitute a lost generation

child-poverty

A new UNICEF report shows that 2.6 million children have sunk below the poverty line in the world’s most affluent countries since 2008, bringing the total number of children in the developed world living in poverty to an estimated 76.5 million.*

In 23 of the 41 countries analyzed, child poverty has increased since 2008. In Ireland, Croatia, Latvia, Greece, and Iceland, rates rose by over 50 per cent.

In the United States, the overall poverty rate for children rose from an already high 30.1 percent in 2008 to 32.2 percent in 2012.

The report also explains that, in recent decades, the social safety net in the United States has favored the working poor more than the out-of-work poor. Thus, for example,

Among those at or below 100 per cent of the poverty threshold, a large decrease in earned income and TANF in 2010 is offset by large increases in food stamps and the EITC. There was also a modest increase in unemployment insurance. For this group as a whole, the increase in child poverty was lower during this recession than it was in 1982.

For those at or below 50 per cent of the poverty threshold – the extreme poor – the story is somewhat different. Panel B still shows a large decrease in earned income and TANF and a large increase in food stamps, but it also shows a much smaller increase in the EITC and a slight decline in unemployment insurance, in contrast with the situation of the regular poor.

This highlights how the United States safety net has changed to provide more support for poor working families and less for the extreme poor with no work. As a result, extreme child poverty has also increased more in this recession than in the recession of 1982, indicating that the safety net was stronger for the poorest children 30 years ago.

 

*The UNICEF report uses a fixed reference point, anchored to the relative poverty line in 2008, as a benchmark against which to assess the absolute change in child poverty over time. This change is calculated by computing child poverty in 2008 using a poverty line fixed at 60 per cent of median income. Using the same poverty line in 2012, adjusted for inflation, the rate is computed and the difference in the two rates is shown. A positive number indicates an increase in child poverty. (Using a relative poverty line each year would obscure the impact on poverty of an overall decline in median income. In the United Kingdom, for example, relative child poverty decreased from 24 per cent in 2008 to 18.6 per cent in 2012 due to a sharp decline in median income and the subsequent lowering of the relative poverty line. Using the anchored indicator, it actually increased from 24.0 per cent to 25.6 per cent from the start of the recession.)

Chart of the day

Posted: 24 October 2014 in Uncategorized
Tags: , , ,

wages-dcj

As David Cay Johnston explains,

American paychecks shrank last year, just-released data show, further eroding the public’s purchasing power, which is so vital to economic growth.

Average pay for 2013 was $43,041 — down $79 from the previous year when measured in 2013 dollars. Worse, average pay fell $508 below the 2007 level. . .

Flat or declining average pay is a major reason so many Americans feel that the Great Recession never ended for them. A severe job shortage compounds that misery not just for workers but also for businesses trying to profit from selling goods and services. . .

Which group of lucky duckies didn’t see their pay fall? Workers making more than $50 million, who saw their average pay rise by $12.8 million, to $111.7 million. . .

Overall median pay — half of Americans make more, half make less — rose slightly last year. It was up a scant $109, to $28,031. That was still $320 below the 2000 median. It also was slightly lower than the 1999 median of $28,109, a troubling measure of long-term wage stagnation.

 

Note: here’s a link to the Social Security Administration’s wage statistics for 2013.

wealth ratio

Credit Suisse [pdf] appears to celebrate the growth of wealth, in the United States and around the world, during the last few years.

But the investment giant also sounds an alarm concerning the growth in the ratio of wealth to income:

For more than a century, the wealth income ratio has typically fallen in a narrow interval between 4 and 5. However, the ratio briefly rose above 6 in 1999 during the dot.com bubble and broke that barrier again during 2005–2007. It dropped sharply into the “normal band” following the financial crisis, but the decline has since been reversed, and the ratio is now at a recent record high level of 6.5, matched previously only during the great Depression. This is a worrying signal given that abnormally high wealth income ratios have always signaled recession in the past.

Graphical-top

This chart contains some of the data on economic inequality from the report of a recent conference organized by the Washington Center for Equitable Growth.

From Emmanuel Saez:

In the United States today, the share of total pre-tax income accruing to the top 1 percent has more than doubled over the past five decades. The wealthy among us (families with incomes above $400,000) pulled in 22 percent of pre-tax income in 2012, the last year for which complete data are available, compared to less than 10 percent in the 1970s. What’s more, by 2012 the top 1 percent income earners had regained almost all the ground lost during the Great Recession of 2007-2009. In contrast, the remaining 99 percent experienced stagnated real income growth—after factoring in inflation—after the Great Recession.

Another less documented but equally alarming trend has been the surge in wealth inequality in the United States since the 1970s. In a new working paper published by the National Bureau of Economic Research, Gabriel Zucman at the London School of Economics and I examined information on capital income from individual tax return data to construct measures of U.S. wealth concentration since 1913. We find that the share of total household wealth accrued by the top 1 percent of families— those with wealth of more than $4 million in 2012—increased to almost 42 percent in 2012 from less than 25 percent in the late 1970s. Almost all of this increase is due to gains among the top 0 .1 percent of families with wealth of more than $20 million in 2012. The wealth of these families surged to 22 percent of total household wealth in the United States in 2012 from around 7.5 percent in the late 1970s.

The flip side of such rising wealth concentration is the stagnation in middle-class wealth. Although average wealth per family grew by about 60 percent between 1986 and 2012, the average wealth of families in the bottom 90 percent essentially stagnated. In particu­lar, the Great Recession reduced their average family wealth to $85,000 in 2009 from $130,000 in 2006. By 2012, average family wealth for the bottom 90 percent was still only $83,000. In contrast, wealth among the top 1 percent increased substantially over the same period, regaining most of the wealth lost during the Great Recession.

For both wealth and income, then, there is a very uneven recovery from the losses of the Great Recession, with almost no gains for the bottom 90 percent, and all the gains concentrated among the top 10 percent, and especially the top 1 percent.

PPI

source (November 2009=100)

According to the Bureau of Labor Statistics, prices received by U.S. producers fell in September for the first time in over a year, a potentially worrisome sign for the economy in that sustained increases in the producer price index—a sign that economic activity is picking up—appear to be failing to gain traction. Producer prices rose 1.6 percent for the year through September, the lowest annual reading in six months.*

So much for the idea that we’re well into an economic recovery!

 

*The Producer Price Index, which measures the average change over time in the selling prices received by domestic producers for their output, is generally associated with changes in consumer prices down the road.