Heritage: Ten most popular economic charts of 2010

Heritage:

Top Ten Charts of 2010

The Top Ten Heritage Charts are below, sorted by pageviews with the 10th most popular chart on top, and the most popular chart at the bottom. Turns out the most popular chart of 2010 is the same as the 2009 (with updated info).  

10. Recent Spending Hikes Are Not Limited to Temporary Emergencies

9. Federal Revenues by Source

8. Federal Government Revenues Have More Than Tripled Since 1965

7. Entitlements Will Consume All Tax Revenues by 2052

6. Taxes per Household Have Risen Dramatically

5. Obama’s Budget Would Create Unprecedented Deficits

4. National Debt Set to Skyrocket

3. Federal Spending Is Growing Faster Than Federal Revenue

2. Federal Spending per Household Is Skyrocketing

1. The Top 10 Percent of Income Earners Paid 71 Percent of Federal Income Tax

Handouts Make Up One-Third of U.S. Wages

Remember that Clinton/Gingrich “Welfare Reform” law that was so effective at stopping people from gaming the system and helping people get back to work? Did you know it was reversed with the stimulus bill?

CNBC:

Government payouts—including Social Security, Medicare and unemployment insurance—make up more than a third of total wages and salaries of the U.S. population, a record figure that will only increase if action isn’t taken before the majority of Baby Boomers enter retirement.

Even as the economy has recovered, social welfare benefits make up 35 percent of wages and salaries this year, up from 21 percent in 2000 and 10 percent in 1960, according to TrimTabs Investment Research using Bureau of Economic Analysis data.

“The U.S. economy has become alarmingly dependent on government stimulus,” said Madeline Schnapp, director of Macroeconomic Research at TrimTabs, in a note to clients. “Consumption supported by wages and salaries is a much stronger foundation for economic growth than consumption based on social welfare benefits.”

Flashback 2010: Washington State overwhelmingly votes down new tax on wealthy

[Those who are running on class warfare, eat the rich nonsense could be in for a rude awakening come 2012. It was just a few short months ago that the liberal Washington State had a referrendum and look at what they did. – Editor]

 

Even Microsoft opposed it. Gotta love the irony.

The mega rich guys who supported this are big time hypocrite. As 5% means nothing to them and since much of their income is not in the form of taxable wages they would have been exempted from most of it anyways. The producer class though would have gotten soaked.

The truth is we need wealth. Wealth goes where it is treated well and in case you haven’t noticed it is being treated well in China. We have lost 14,000 factories in the last 10 years. We want wealth to come to our communities, not drive them away.

Al Reuters:

The plan devised by the father of the Microsoft Corp co-founder to slap a 5 percent tax on earnings over $200,000 — Initiative Measure 1098 — was rejected by 65 percent of voters, with almost two-thirds of precincts reported.

The result is a boon for the anti-tax Tea Party movement and suggests Americans may be in the mood to extend tax cuts introduced by former President George W. Bush even for the wealthiest citizens. It also signals that Americans are unwilling to accept higher taxes as a way of balancing state budgets ravaged by the recession.

It is a stinging defeat for Bill Gates senior, who put $600,000 of his own money behind the campaign and also for his son, the world’s second richest person, who let it be known he would vote for the measure.

The vote is the fourth failure to introduce a state tax in Washington in the last 70 years and leaves the state as one of only seven without one.

Although the new tax would have affected fewer than 70,000 people out of the state’s 6.7 million residents, an opposition campaign run by an organization called Defeat 1098 persuaded voters that the tax on the wealthy would be extended to lower earners.

Major backers of Defeat 1098 include Microsoft Chief Executive Steve Ballmer, who contributed $425,000 to the campaign, Microsoft co-founder Paul Allen and Amazon.com founder and CEO Jeff Bezos.

Microsoft, Boeing and Alaska Airlines, all major employers in the state, also contributed to the opposition campaign, fearing that a tax on high-earners would hurt their ability to lure talented workers to the state.

Texas Governor Rick Perry recently seized on the issue to invite top businesses in Washington state to relocate to Texas, which does not have an income tax.

Corruption: Most Stimulus Funds Spent in Democrat Districts…

[Originally posted on my old college blog in April 2010 – Editor]

Via George Mason University, National Review, and HotAir.

The stimulus bill, as ill conceived as it is, gives is a fantastic opportunity to test Keynesian economic policy and models in comparison to actual results.

According to the law, districts with the highest unemployment were supposed to get the bulk of the stimulus money. Did that actually happen?

First: The idea behind the $787 billion stimulus bill is that, if the government spends money where it is the most needed, it will create jobs and trigger economic growth. Hence, we should expect the government to invest more money in districts with higher unemployment rates.

Controlling for the percentage of the district employed in the construction industry, a proxy for the vulnerability to recession of a district, I find no statistical correlation for all relevant unemployment indicators and the allocation of funds. This suggests that unemployment is not the factor leading the awards. Also, I found no correlation between other economic indicators, such as income, and stimulus funding.

Second: On average, Democratic districts received one-and-a-half times as many awards as Republican ones. Democratic districts also received two-and-a-half times more stimulus dollars than Republican districts ($122,127,186,509 vs. $46,139,592,268). Republican districts also received smaller awards on average. (The average dollars awarded per Republican district is $260,675,663, while the average dollars awarded per Democratic district is $471,533,539.)

The exact same thing happend under the “new deal” where much of the spending went to swing districts to buy votes. Massive amounts of money spent and non-farm unemployment never dropped below 20% during the New Deal.

The fact remains and it might as well be considered a Law of Economics: Politicians spend money with a political result in mind, not an economic one. Pictorial logarithm proof:

As you can see the log shows no correlation, but look at this….

Well would you look at that. Oh the news gets better…

In the report from Dr. Veronique de Rugy from George Mason University:

I found that an average cost of $286,000 was awarded per job created, a 16.3 percent increase over the previous period.

See the full report HERE.

Now in case you are thinking to yourself, /whiney voice on “Well wait, that economist you quoted doesn’t count cause she is French and she wrote a note about her findings to Natioal Review which means she is a nazi and only twice removed from Hitler’s third cousin!”

Well USA Today hired some econo-geeks and they came up with the same result:

Counties that supported Obama last year have reaped twice as much money per person from the administration’s $787 billion economic stimulus package as those that voted for his Republican rival, Sen. John McCain, a USA TODAY analysis of government disclosure and accounting records shows. That money includes aid to repair military bases, improve public housing and help students pay for college…

More crony capitalism and corruption.

48 Out of 50 States Have Lost Jobs since Democrats’ Stimulus Law. Washington DC Gained Jobs.

And these numbers were taken from last December so it is even worse now. We have been losing about 400,000 jobs a week since that time based on new unemployment claims (in fairness this number does not include jobs created which helps to mitigate this number, but with wages going down and inflation goes up, lots of thes enew jobs are part time and/or are people just taking anything out of desperation).

House Ways & Means Committee:

While Democrats promised stimulus would create 3.7 million jobs, the reality is far different. To date, 48 out of 50 states have lost jobs, while the unemployment rate has remained at or above 9.5% for 15 consecutive months. As the nation nears the end of 2010 — when final statistics will be available to compare actual outcomes with the Administration’s pre-stimulus projections — Washington, D.C. remains the only place in America where those job-creation projections actually have been met.  Meanwhile, the rest of the nation is left asking “Where are the jobs?”

State Administration Projection of Change in Jobs Through December 2010 Actual Change in Jobs Through October 2010
Alabama +52,000 -43,500
Alaska +8,000 -1,200
Arizona +70,000 -73,800
Arkansas +31,000 -5,100
California +396,000 -543,400
Colorado +59,000 -83,200
Connecticut +41,000 -39,200
Delaware +11,000 -10,300
District of Columbia +12,000 +21,100
Florida +206,000 -169,200
Georgia +106,000 -126,200
Hawaii +15,000 -8,900
Idaho +17,000 -16,100
Illinois +148,000 -160,900
Indiana +75,000 -40,200
Iowa +37,000 -20,200
Kansas +33,000 -32,800
Kentucky +48,000 -7,700
Louisiana +50,000 -15,600
Maine +15,000 -9,900
Maryland +66,000 -13,900
Massachusetts +79,000 -33,500
Michigan +109,000 -105,900
Minnesota +66,000 -24,700
Mississippi +30,000 -23,900
Missouri +69,000 -66,500
Montana +11,000 -8,600
Nebraska +23,000 -11,400
Nevada +34,000 -79,000
New Hampshire +16,000 +5,200
New Jersey +100,000 -104,600
New Mexico +22,000 -13,300
New York +215,000 -127,700
North Carolina +105,000 -81,900
North Dakota +8,000 +6,600
Ohio +133,000 -157,500
Oklahoma +40,000 -24,400
Oregon +44,000 -41,300
Pennsylvania +143,000 -71,900
Rhode Island +12,000 -15,600
South Carolina +50,000 -22,900
South Dakota +10,000 -2,500
Tennessee +70,000 -53,700
Texas +269,000 -54,100
Utah +32,000 -15,000
Vermont +8,000 -5,200
Virginia +93,000 -44,500
Washington +75,000 -70,900
West Virginia +20,000 -10,600
Wisconsin +70,000 -69,100
Wyoming +8,000 -7,800

Source: Administration February 13, 2009 projection and actual U.S. Department of Labor data.