Posts Tagged ‘states’

S*&P-revenues

OK, it’s not a very good chart (the yellow line should be labeled the share of income to the top 1 percent, and the blue line the annual percentage change in state tax revenues). But the argument is, in fact, serious: Standard & Poor’s [pdf] finds a strong correlation between growing income inequality and the fiscal crisis of the states.

The argument is pretty straightforward: rising income inequality since the late 1970s has been accompanied by two trends in the tax revenues received by the various states: a slowing in the rate of growth of tax revenues (from 1980 to 2011, average annual state tax revenue growth fell to 5 percent from 10 percent) and by a growing volatility in state tax revenues (from a standard deviation of 3.55 during 1950-1979 and 1.04 during 1990-1999 to 5.78 from 2000 to 2009).

And the explanation for this relationship?

the higher savings rates of those with high incomes causes aggregate consumer spending to suffer. And since one person’s spending is another person’s income, the result is slower overall personal income growth despite continued strong income gains at the top.

On top of that,

Those at the top obtain more of their income from capital gains, which on the whole, fluctuate much more than income from wages. Tax revenues reflect this — both as a consequence of higher top-end tax rates and because the top end is where the income growth has occurred –- and are, therefore, more volatile.

Thus, we should understand the following: when Standard & Poor’s downgrades the credit rating of one or another state, it’s actually downgrading the rise of income inequality within and across the states.

state min wage

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.

Bolling-medicaid

Special mention

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Map of the day

Posted: 28 February 2014 in Uncategorized
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MedicaidMap

The map above indicates the net loss of federal funds by 2022, in millions, for the 20 states choosing not to participate in Medicaid expansion, assuming all other states participate.

As the Huffington Post explains,

Following a 2012 Supreme Court ruling that made Medicaid expansion under the Affordable Care Act optional for states, 20 states have opted out of the reform, rejecting billions of dollars of federal funding for low-income residents. Texas and Florida will lose more than $9 billion and $5 billion, respectively.

See, also, Al Madrigal’s lambasting of the states that rejected expanded Medicaid coverage under the Affordable Care Act.

Chart of the day

Posted: 22 February 2014 in Uncategorized
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United States

As Jon Queally explains,

  • In four states (Nevada, Wyoming, Michigan, and Alaska), only the top 1 percent experienced rising incomes between 1979 and 2007, and the average income of the bottom 99 percent fell.
  • In another 15 states the top 1 percent captured between half and 84 percent of all income growth between 1979 and 2007. Those states are Arizona (where 84.2 percent of all income growth was captured by the top 1 percent), Oregon (81.8 percent), New Mexico (72.6 percent), Hawaii (70.9 percent), Florida (68.9 percent), New York (67.6 percent), Illinois (64.9 percent), Connecticut (63.9 percent), California (62.4 percent), Washington (59.1 percent), Texas (55.3 percent), Montana (55.2 percent), Utah (54.1 percent), South Carolina (54.0 percent), and West Virginia (53.3 percent).
  • In the 10 states in which the top 1 percent captured the smallest share of income growth, the top 1 percent captured between about a quarter and just over a third of all income growth. Those states are Louisiana (where 25.6 percent of all income growth was captured by the top 1 percent), Virginia (29.5 percent), Iowa (29.8 percent), Mississippi (29.8 percent), Maine (30.5 percent), Rhode Island (32.6 percent), Nebraska (33.5 percent), Maryland (33.6 percent), Arkansas (34.0 percent), and North Dakota (34.2 percent).

map-SNAP

source

In February of this year, 15 percent of the U.S. population—47.6 million people—were on food stamps.

Mississippi was the state with the largest share of its population relying on food stamps (22 percent), although the nation’s capital was even higher (at 23 percent). One in five residents in Oregon, New Mexico, Louisiana, Tennessee, Georgia, and Kentucky also was a food-stamp recipient.

red-state-whiners-what-now-479

Special mention

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