Posts Tagged ‘chart’
Tags: chart, growth, immigration, inequality, OECD, productivity
The OECD [pdf] has just come in with its latest long-term economic projection. And the results ain’t pretty: they forecast slower growth for the global economy and even slower growth for the developed countries (both under relatively rosy predictions about productivity growth and rising immigration requirements), and even those lower growth rates will be challenged and potentially undermined by the effects of climate change.
Perhaps even more important, they expect the existing trend of growing inequality (as seen in the chart above) to continue through 2060 (as see in the charts below).
The bottom-line message: the best capitalism has to offer is probably over. It’s certainly over for the richest countries, and during the next 50 years it will probably end for the other countries that make up the world economy. Even if the existing institutions hang on (under the suggested policy regime of more globalization, more privatization, more austerity, and more migration), the result will be rising inequality within countries.
How long, then, before we decide an alternative set of economic institutions is necessary?
Tags: chart, inequality, Second Great Depression, United States, wealth
According to a new study by Fabian T. Pfeffer, Sheldon Danziger, and Robert F. Schoeni,
Through at least 2013, there are very few signs of significant recovery from the losses in wealth experienced by American families during the Great Recession. Declines in net worth from 2007 to 2009 were large, and the declines continued through 2013. These wealth losses, however, were not distributed equally. While large absolute amounts of wealth were destroyed at the top of the wealth distribution, households at the bottom of the wealth distribution lost the largest share of their wealth. As a result, wealth inequality increased significantly from 2003 through 2013; by some metrics inequality roughly doubled.
The gap between the growth of productivity (now at 11.4 percent above January 2007) and that of wages (only 1.5 percent higher) continues to widen (according to Reuters).
Is it any wonder, then, that income inequality continues to rise?
Tags: chart, minimum wage, states, United States, wages
Here, based on a study by Arindrajit Dube [pdf] is a chart designed by Alissa Scheller (for the Huffington Post) of what each state’s minimum wage would be if it met the minimum standard of being equal to one-half the median wage in each state.
As Dubit explains,
A natural target is to set the minimum wage to half of the median full-time wage. This target has important historical precedence in the United States: in the 1960s, this ratio was 51 percent, reaching a high of 55 percent in 1968. Averaged over the 1960–1979 period, the ratio stood at 48 percent. Approximately half the median full-time wage is also the norm among all OECD countries with a statutory minimum wage. For OECD countries, on average, the minimum wage in 2012 (using the latest data available) was equal to 49 percent of the median wage; averaged over the entire sample between 1960 and 2012, the minimum stood at 48 percent of the median (OECD 2013). In contrast, the U.S. minimum wage now stands at 38 percent of the median wage, the third-lowest among OECD countries after Estonia and the Czech Republic.
The bottom-line of a new NBC News/Wall Street Journal poll concerning American’s views about poverty [ht: sm]:
The poll shows a significant shift in American opinion on the causes of poverty since the last time the question was asked, nearly 20 years ago. In 1995, in the midst of a raging political debate about welfare and poverty, less than a third of poll respondents said people were in poverty because of issues beyond their control. At that time, a majority said that poverty was caused by “people not doing enough.” Now, nearly half of respondents, 47 percent, attribute poverty to factors other than individual initiative.
The current World Cup finals in Brazil have had fewer draws (or, in American, tied games) than in many recent World Cup tournaments. There have been only three thus far (through 20 matches).
Not that a draw, even a scoreless draw, is necessarily boring. The Brazil-Mexico game, which ended 0-0, is a perfect example. It was, in fact, thrilling—with end-to-end action, great interchanges and goalscoring opportunities, lots of shots, and spectacular saves (especially by Mexican goalkeeper Ochoa).
Interestingly enough (especially for the Economist), the column that accompanies the chart blames globalization for leveling the game, such that “football has been ‘normalised’ into 90 minutes of boredom.”
I don’t think that’s correct. It is true that some teams (like Spain and Brazil) in these finals have not played up to their potential. But other teams (such as Costa Rica, Croatia, Mexico, and the United States) seem to be punching above their weight. That, and the generally higher quality of play overall, has made this one of the most entertaining and exciting World Cup finals in memory.
*I haven’t checked all the numbers but there is one glaring mistake in the chart: the 1994 World Cup finals held in the United States had 24, not 32, teams participating.
Tags: chart, corporations, profits, tax havens, United States
This is Gabriel Zucman’s estimate of the percentage of U.S. corporate profits that has been reinvested in the main tax havens outside the United States.
In charting the amount of the surplus that ends up in the hands (or, if you prefer, pockets or bank accounts) of CEOs, the Economic Policy Institute finds that:
- Average CEO compensation was $15.2 million in 2013, using a comprehensive measure of CEO pay that covers CEOs of the top 350 U.S. firms and includes the value of stock options exercised in a given year, up 2.8 percent since 2012 and 21.7 percent since 2010.
- From 1978 to 2013, CEO compensation, inflation-adjusted, increased 937 percent, a rise more than double stock market growth and substantially greater than the painfully slow 10.2 percent growth in a typical worker’s compensation over the same period.
- The CEO-to-worker compensation ratio was 20-to-1 in 1965 and 29.9-to-1 in 1978, grew to 122.6-to-1 in 1995, peaked at 383.4-to-1 in 2000, and was 295.9-to-1 in 2013, far higher than it was in the 1960s, 1970s, 1980s, or 1990s.
- If Facebook, which they exclude from their data due to its outlier high compensation numbers, were included in the sample, average CEO pay was $24.8 million in 2013, and the CEO-to-worker compensation ratio was 510.7-to-1.
Tags: chart, employment, jobs, profits, unemployment, United States, wages, workers
With 217,000 new jobs created in May, the U.S. economy is finally—finally, after 50 months!—back to the pre-recession employment level.
Except it isn’t. Not by a long shot. Not when we consider the “jobs gap”—which we can calculate in one of two ways: by the amount of time it will take at this rate to get back to pre-recession employment levels while also absorbing the people who enter the labor force each month (4 years) or by the difference between payroll employment and the number of jobs needed to keep up with the growth in the potential labor force (6.9 million jobs).
And that’s not even considering the kinds of jobs that have been created or the pay for those jobs or the percentage of the unemployed who have been without a job for 27 weeks or more.
Or, for that matter, the fact that all those how have been lucky enough to keep their jobs or to get a new job are forced to have the freedom to work for a small number of employers who are able to capture and do what they will with the profits their workers create.