Archive for the ‘Economy’ Category

Low Taxes in the US Causing Income Inequality to be High

November 21, 2014

The United States has the highest income inequality among comparable nations. The left-side graph depicts the US as having a favorable Gini coefficient (a measure of income inequality) without taxes. After taxes and government transfers are factored in, the US becomes highly unequal. One of the reasons for this trend is that, although the US uses progressive taxation, the tax rates are significantly lower than the international standard and social welfare programs are also much less generous.

–From The New York Times

New Home Value Indicies Show Owners Over-Value Homes during a Crisis

November 4, 2014

Quicken Loans released two new indices, the ‘Home Value Index’ and the ‘Home Price Index,’ as depicted in the graph above.  These indices reveal that homeowners overvalue their homes in times of economic crisis. This can be seen in the graph where home values are significantly overstated by homeowners during the 2008-09 financial crisis. The opposite effect is seen when the market is rebounding:  homeowners tend to undervalue their homes.

–From Quicken Loans Press Room

Real US GDP Shrank in First Quarter of 2014

May 29, 2014

The real US GDP growth rate declined this quarter and is now at -1%, the first quarter of negative growth since 2011. Nominal GDP is up 11.7 billion, to $17.1 trillion. Click the chart to see our detailed GDP report.

–data from the St. Louis Federal Reserve

Taxes Represent Same Share of GDP as 1970’s

February 25, 2014

Taxes make up about the same amount of GDP as they did in the 1970’s. Although the amount fluctuated over the past forty years, following boom and bust cycles of the economy, the percentage is nearly the same.

–from NPR

Brazil, China, and India to Produce 40% of Global Output by 2050

February 6, 2014

 

Brazil, China, and India are projected to account for 40% of global output by 2050, for the first time since around 1850.

–from the UN

MIST Economies to Overtake BRIC in the Next Four Years

January 31, 2014

 

Oil Surplus May Contribute to Western Deflation

January 23, 2014

A combination of calming political situations in numerous oil producing countries combined with enormous gains in US oil production will likely result in deflation for all of the Western world. Inflation rates in the US and parts of Europe are already near or below 1% and there is little indication the trend will reverse, especially if oil prices slide substantially. The US is expected to equal or surpass Saudia Arabia’s oil production level by 2016.

–from The UK Telegraph

Dour Literature Matches Gloomy Economic Outlooks

January 14, 2014

Books using words indicating sadness, shown here on the red literary misery line, correlated to, with about a ten year delay, economic misery, which is shown on the black line. In other words, the more miserable the economy at the time, the sadder the books written a decade later. This gap is attributed to the fact that authors either grow up during a recession and then write about it when they become adults, or that writers in general use the past decade, roughly, to draw from. Economic misery was counted by the sum of inflation and unemployment.

–from PLoS One and The Guardian

Home Equity Will Soon Be More Valuable than Mortgage Debt

January 9, 2014

For the first time since the US housing bubble burst, home equity is about to grow larger than mortgage debt. So, in sum, mortgages are no longer underwater. This obviously is not the case for many individual mortgages, but still bodes well.

–from The Economist

Healthcare as a Percent of GDP is Shrinking

January 7, 2014

Health care spending grew by 3.7% in 2012, one percent slower than the economy in general. This comes after years of slowing growth rates.

–from The Washington Post


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