Tag Archives: economics

Saturday Stat: New Orleans Weathers the Great Recession

Partly because the city had just begun to recovery from Hurricane Katrina when the Great Recession began, it suffered less job loss relative to its pre-recession state and GDP actually grew 3.9% between 2008 and 2011. No other southern metropolitan area cracked 2% in the same period.

Charles Davidson, writing for EconSouth, offers the following evidence of New Orleans’ resilience in the face of the Great Recession. Chart 1 shows that it lost a smaller percentage of its jobs than the U.S. as a whole.

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This is even more significant as it looks, as New Orleans had been in economic decline for decades before Katrina.  Davidson reports that “the economy in New Orleans has reversed decades of decline and outperformed the nation and other southern metropolitan areas.  Consider: the job growth in New Orleans shown in Chart 2 may not look impressive, but compare it to the extraordinary declines of its neighbors.

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Thanks to greater diversification of its economy, record tourism, and rising investment money, the city may be setting itself up for a revival.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Saturday Stat: 23% of U.S. Children Live in Poverty

If the well-being of our children is an indicator of the health of our society we definitely should be concerned.  Almost one-fourth of all children in the U.S. live in poverty.

The Annie E. Casey Foundation publishes an annual data book on the status of American children.  Here are a few key quotes from 2014 (all data refer to children 18 and under, unless otherwise specified):

  • Nationally, 23 percent of children (16.4 million) lived in poor families in 2012, up from 19 percent in 2005 (13.4 million), representing an increase of 3 million more children in poverty.
  • In 2012, three in 10 children (23.1 million) lived in families where no parent had full-time, year-round employment. Since 2008, the number of such children climbed by 2.9 million.
  • Across the nation, 38 percent of children (27.8 million) lived in households with a high housing cost burden in 2012, compared with 37 percent in 2005 (27.4 million).

As alarming as these statistics are, they hide the terrible and continuing weight of racism.  Emily Badger, writing in the Washington Post, produced the following charts based on tables from the data book.

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Children live in poverty because they live in families in poverty.  Sadly, despite the fact that we have been in a so-called economic expansion since 2009, most working people continue to struggle.  The Los Angeles Times reported that “four out of 10 American households were straining financially five years after the Great Recession — many struggling with tight credit, education debt and retirement issues, according to a new Federal Reserve survey of consumers.”

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

What Does It Mean to be Authentically Cajun?

Flashback Friday.

The term “Cajun” refers to a group of people who settled in Southern Louisiana after being exiled from Acadia (now Nova Scotia, New Brunswick, and Prince Edward Island) in the mid 1700s.  For a very long time, being Cajun meant living, humbly, off the land and bayou (small-scale agriculture, hunting, fishing, and trapping).  Unique cuisine and music developed among these communities.

In Blue Collar Bayou, Jaques Henry and Carl Bankston III explain that today more than 70% live in urban areas and most work in blue collar jobs in service industries, factories, or the oil industry. “Like other working-class and middle-class Americans,’ they write, “the Southwestern Louisianan of today is much more likely to buy dinner at the Super Kmart than to trap it in the bayou” (p. 188).

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But they don’t argue that young Cajuns who live urban lifestyles and work in factories are no longer authentically Cajun.  Instead, they suggest that the whole notion of ethnic authenticity is dependent on economic change.

When our economy was a production economy (that is, who you are is what you make), it made sense that Cajun-ness was linked to how one made a living.  But, today, in a consumption economy (when our identities are tied up with what we buy), it makes sense that Cajun-ness involves consumption of products like food and music.

Of course, commodifying Cajun-ness (making it something that you can buy) means that, now, anyone can purchase and consume it.  Henry and Bankston see this more as a paradox than a problem, arguing that the objectification and marketing of “Cajun” certainly makes it sellable to non-Cajuns, but does not take away from its meaningfulness to Cajuns themselves.  Tourism, they argue, “encourages Cajuns to act out their culture both for commercial gain and cultural preservation” (p. 187).

Photos borrowed from GQ, EW, and My New Orleans.  Originally posted in 2009.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Can Lawmakers Only Make Laws that Corporations Allow?

We refer to Senators and Congressional representatives as “lawmakers.” We democratically elect these people so that they can write and enact laws. But every so often the curtain parts, and we get a glimpse of who’s writing the laws, though these are usually laws that don’t make headlines. There was that time during the Bush years when corporate lobbyists were sitting right next to elected representatives – mostly Republican – at a committee hearing, telling them what to say.  The GOP defenders got all huffy at those who had pointed out who was really running the legislation show.

Last week’s New York Times has an article (here) about efforts to close loopholes in corporate tax laws.  Three-quarters of the way through the story, we get this paragraph (emphasis added):

Elaine C. Kamarck, the co-chairwoman of a bipartisan coalition of businesses and organizations that support a tax overhaul, says the only way a tax bill will pass is to use any savings derived from closing corporate loopholes solely to lower the overall corporate tax rate. The companies that have joined the coalition, which include Boeing, AT&T, Verizon, Walmart and Walt Disney, have agreed to put every loophole on the table, she said, because they believe “a low enough basic tax rate is worth giving up exemptions.”

The message is clear: our elected representatives can change the law only if a handful of corporations agree. Ms. Kamarck tells us that these corporations have selflessly allowed their tax dodges to be put “on the table.” Presumably, had they not been so magnanimous,  these corporations would not allow Congress to change the law.  She also implies that if the tradeoff – fewer exemptions but lower rates — doesn’t benefit the corporations, they’ll take their loopholes off the table and stop our elected representatives from changing the law.

Nice. I think that educators are so valuable to society that their income should not be taxed. But that table Ms. Kamarck mentions – the one where you tell Congress which tax rules you’ll accept – I can’t get anywhere near it.  So I pay my taxes. In fact, last year, I paid more in taxes than did Verizon and Boeing combined.  They, and several other huge corporations, paid zero.

I am, of course, naive to think that it was really Congress that wrote the laws that allow these corporations to pay nothing, and not the corporations themselves. How else?

Jay Livingston is the chair of the Sociology Department at Montclair State University. You can follow him at Montclair SocioBlog or on Twitter.

Saturday Stat: Median Household Wealth Fell by 1/3 since 2003

According to a June 2014 Russell Sage Foundation report, the average U.S. household experienced a real wealth decline of more than one-third over the 10 years ending in 2013.

Table 1 shows that the net worth of the median household fell from $87,992 in 2003 to $56,335 in 2013, for a decline of 36%.  In fact, the last ten years were hard on the overwhelming majority of American households.  Only the top 2 groups enjoyed wealth gains over the period.  Also noteworthy is the tiny net worth of households below the median.

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Figure 1 provides a longer term perspective on wealth movements.  We can see that most households enjoyed growing wealth from 1984 to the 2007 crisis, with wealth falling across the board since.  However, the median household is now significantly poorer than it was in 1984.  Only the richer households managed to maintain most of their earlier gains in wealth.

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These trends highlight the fact that we have a growing inequality of wealth, as well as of income, and they are not likely to reverse on their own.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Saturday Stat: World’s Top Military Spender

According to the Stockholm International Peace Institute, the United States remains the world’s top military spender. In fact, U.S. military spending equals the combined military spending of the next ten countries.  And most of those are U.S. allies.

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Although declining in real terms, the U.S. military budget remains substantial and a huge drain on our public resources.  As the following chart shows, military spending absorbs 57% of our federal discretionary budget.

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 Notice that many so-called non-military discretionary budget categories also include military related spending. For example: Veteran’s Benefits, International Affairs, Energy and the Environment, and Science.   We certainly seem focused on a certain kind of security.

Martin Hart-Landsberg is a professor of economics at Lewis and Clark College. You can follow him at Reports from the Economic Front.

Conspicuous Pollution: Rural White Men Rollin’ Coal

Conspicuous consumption refers to the practice of ostentatiously displaying of high status objects.  Think very expensive purses and watches.  In the last few decades, as concern for the environment has become increasingly en vogue, it has become a marker of status to care for the earth.  Accordingly, people now engage in conspicuous conservation, the ostentatious display of objects that mark a person as eco-friendly.

Driving a Prius and putting solar panels on visible roof lines, even if they aren’t the sunniest, are two well-documented examples.  Those “litter removal sponsored by” signs on freeways are an example we’ve featured, as are these shoes that make it appear that the wearer helped clean up the oil spill in the gulf, even though they didn’t.

Well, welcome to the opposite: conspicuous pollution.

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Elizabeth Kulze, writing at Vocativ, explains:

In small towns across America, manly men are customizing their jacked-up diesel trucks to intentionally emit giant plumes of toxic smoke every time they rev their engines. They call it “rollin’ coal”…

It’s a thing. Google it!

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This is not just a handful of guys.  Kulze links to “an entire subculture” on Facebook, Tumblr, and Instagram. “It’s just fun,” one coal roller says. “Just driving and blowing smoke and having a good time.”

It isn’t just fun, though. It’s a way for these men — mostly white, working class, rural men — to send an intrusive and nasty message to people they don’t like. According to this video, that includes Prius drivers, cops, women, tailgaters, and people in vulnerable positions. “City boys” and “liberals” are also targeted:

Kulze reports that it costs anywhere between $1,000 and $5,000 to modify a pickup to do this, which is why the phenomenon resonates with conspicuous consumption and conservation.  It’s an expensive and public way to claim an identity that the owner wants to project.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.

Modern Politics, the Slave Economy, and Geological Time

Flashback Friday.

I have borrowed the information and images below from Jeff Fecke at Alas A Blog.  His discussion, if you’re interested, is more in depth.

There is a winding line of counties stretching from Louisiana to South Carolina, a set of states that largely voted for McCain in 2008, that went for Obama.  The map below shows how counties voted in blue and red and you can clearly see this interesting pattern.

 

These counties went overwhelmingly for Obama in part because there is large black population.  Often called the “Black Belt,” these counties more so than the surrounding ones were at one time home to cotton plantations and, after slavery was ended, many of the freed slaves stayed.  This image nicely demonstrates the relationship between the blue counties and cotton production in 1860:

 

But why was there cotton production there and not elsewhere?  The answer to this question is a geological one and it takes us all the way back to 65 million years ago when the seas were higher and much of the southern United States was under water.  This image illustrates the shape of the land mass during that time:

I’ll let Jeff take it from here:

Along the ancient coastline, life thrived, as usually does. It especially thrived in the delta region, the Bay of Tennessee, if you will. Here life reproduced, ate, excreted, lived, and died. On the shallow ocean floor, organic debris settled, slowly building a rich layer of nutritious debris. Eventually, the debris would rise as the sea departed, becoming a thick, rich layer of soil that ran from Louisiana to South Carolina.

65 million years later, European settlers in America would discover this soil, which was perfect for growing cotton.

So there you have it: the relationship between today’s political map, the economy, and 65 million years ago.

Lisa Wade is a professor of sociology at Occidental College and the co-author of Gender: Ideas, Interactions, Institutions. You can follow her on Twitter and Facebook.