Average Household Spending

This tree map from the Wall Street Journal looks at an interesting subject: average household spending. How much are we spending on housing, on food, on transportation, &c.?

Household spending
Household spending

But I’m not so sure that the main visualisation is necessary. I appreciate the big colour and splashiness, but the space use seems inefficient. Perhaps if the colours had been tied, as is commonly seen, to another variable, the tree map would be more useful. Imagine if the chart looked at the spending value and the average growth over the last ten years, with the year-by-year value still plotted below.

 

Economic Freedom

Canada, our neighbour to the north, is sometimes taken to task for being too socialist or too liberal with their healthcare system and regulatory oversight of industries, including finance. But what data increasingly shows us is that we cannot say their more socialist economy is weaker than ours. Rather in several metrics now, the Canadian economy is stronger than ours. The National Post looked at just that a little while back.

A Comparison
A Comparison

Credit for the piece goes to Jonathon Rivait.

Life Expectancy Decline for Under-educated Whites

The New York Times published a chart looking at the decline in life expectancy for under-educated whites, i.e. whites who have not finished high school. The life expectancies of blacks and Hispanics offer a stark contrast, for while starting at a lower base, their respective expectancies are increasing.

Decline
Decline

How a Dead Panda Should Have Grown

Earlier this month a panda was born in Washington. The Post did a small infographic looking at how a panda cub grows over the course of its first year. I decided I would probably wait until sometime later this week to publish it.

Except it died yesterday. So before the moment is gone, here’s a graphic from the Washington Post looking at how the cub should have grown up.

How it should have grown
How it should have grown

Credit for the piece goes to Patterson Clark.

The Enemy Amongst Us

Perhaps the greatest danger now facing NATO and US troops in Afghanistan is the age-old wolf in sheep’s clothing, the insurgent dressed in Afghan Army fatigues. As the graphic below shows, the number of fatalities has been increasing along with the number of attacks. The silver lining in the cloud (to mix metaphors) is that the average lethality of the attacks is on the decline as fewer ISAF soldiers are killed per attack.

Timeline of the History of the World

Evolution is a myth. Creationism is where it’s at. So thankfully we have this new timeline that takes into account the age of fossils, radiocarbon dating, and all that other science-y stuff. I’m just glad to know that the reason we won World War I was because we had the raptors on our side.

The Timeline
The Timeline

The original graphic comes from the Government of South Australia, but the manipulated graphic is courtesy of chartgeek.com.

Where to Live for the Highest Income

So perhaps the title is a bit of a non-sequitor, but the Washington Post released a table of the Top-100 counties by average income. As a Washington paper their focus was on that city’s suburbs, three counties of which are Numbers 1, 2, and 3. But I wanted to get a sense of where other counties were, including that of my hometown.

Where the Rich Live
Where the Rich Live

Better, Safer Driving

Hannah Fairfield at the New York Times created a great infographic a few years ago that looked at the history of the price of gasoline and how many miles, on average, an American drove in a car per year. The piece told some rather interesting stories starting in the 1950s with the explosion of the suburb, interstate highways, and car ownership. The energy crises of the late 1970s and early 1980s provided a spike that eventually subsided for the 1990s and early 2000s when the United States was the dominant economic power and the only country that really consumed that much gasoline. (I remember those days well for that was when I first started filling my own car’s gas tank. How great $1.xx/gal gas was.)

Earlier this week she returned in a similar fashion to look at driver safety over time. The metrics were average annual miles driven and the number of auto fatalities per 100,000 people. Segments of time characterised by a common theme, story, or technology are highlighted and the annotated to explain the change from the previous time period. It’s a rich story that walks the reader through the history of the American auto experience since World War II.

Driving safety
Driving safety

Credit for the piece goes to Hannah Fairfield.

The Growth of the Non-payers of Federal Income Tax

Today will be an unusual day in that it shall have two posts. This first post is following up on yesterday’s about the 47% of Americans who do not pay federal income tax. The Earned Income Tax Credit was created to incentivise people to work. A tax on your income, after all, does the opposite. Why make more money when you pay more of it to the government? By not taxing the poorest Americans, you remove that pressure and instead push the poor towards working for the things they can now purchase. And in so doing, one reduces the level of poverty as those who were poor slowly pull themselves up by their cliched bootstraps.

This is not a liberal idea. One of the earliest proponents of the idea behind the Earned Income Tax Credit programme was none other than Milton Friedman whose laissez-faire economic policies can hardly be called in line with the Democratic platform. And as the following timeline from the New York Times illustrates, the expansion of tax credits like the EITC have generally been largest under Republican administrations.

How the EITC increased the rolls of those who pay no federal income tax
How the EITC increased the rolls of those who pay no federal income tax

Consequently, the implication in Governor Romney’s dinner that the growth has been Democratic is incorrect. In fact, much of the growth behind this “taker” society can be attributed to Republican policies in previous administrations. We should debate whether Friedman-like policies, but we shouldn’t accept candidates’ placement of blame when it is so broadly applied.

Tax policy is an important part of a nation’s fiscal and economic health. We should have these debates. But we should have these debates understanding the facts. Not false “facts”. Not opinionated “facts”. Not invented “facts”. We should hold our candidates to arguing with the facts. Campaigns need not be driven by facts. Campaigns can be driven by broader narratives. But when policies and platforms are scrutinised, they should hold up to the facts.

The 47%

This is the year of the percentages. From 99 to 47. Earlier this week, Mother Jones revealed via a secretly recorded dinner Mitt Romney as claiming that he doesn’t care about the 47% of people who do not pay income tax. He probably meant that he doesn’t care about getting their vote rather than caring for them as people, but regardless of his intention his statement did not sound good. This 47% are people who are dependent on government, or as Romney’s vice presidential candidate would say, they are “takers”. But is this true?

The great thing about news stories and infographics is that as time progresses, one has more opportunities to find data to back stories and arguments. The day of the breaking news, CNN published this simple pie donut chart. Crude, but given the breaking news it is effective.

Federal Income Tax Payers
Federal Income Tax Payers

It proves that Romney was correct, that 47% of people do not pay income taxes. But, it also proves that Romney was at best glossing over the details or at worst manipulating the people listening into thinking that 47% of people do not pay taxes. It may be only 0.9% of Americans who do not pay any taxes. Furthermore, retirees and young people often do not earn income with which to pay taxes. If retired senior citizens are “takers”, I suppose Romney does not want the elderly vote so often important to the Republican base.

But news stories evolve and more statistics become available. A few days later, the New York Times published a longer infographic piece, with below a cropping of the overall.

The Tax Burden by Income Group
The Tax Burden by Income Group

It expands upon the nature of the story and breaks down the actual tax burden of the American public. It is far more nuanced that Romney stated back in May (the original recording of the video). The poorest Americans do not pay federal income taxes, they have the Earned Income Tax Credit (EITC) that is designed to deal with poverty, especially amongst families with children. It is, very simply, what one would call a tax credit incentivising work. The poorest Americans, however, still must pay payroll taxes and then state and local taxes. In percentage terms, the poorest Americans pay more to their states and local governments than do the wealthiest Americans, who in turn have the greater burden at the federal level. It is worth noting that many government programmes, local schools for example, are often funded at the state and local level.

The problem with Mitt Romney’s argument on taxes is that he wants to cut taxes at the highest income brackets and cut the social safety net programmes for the lowest brackets. We already have evidence that such policies do not correlate with economic growth. They instead correlate to a worsening gap between the wealthy and the poor. Think the 1920s rather than the 1950s, 60s, and 70s.

Tax policy is worth discussing. It is worth debating. But we should do so on the facts. I cannot recall the politician who spoke these words, but as someone once said, “you are entitled to your own opinion. You are not entitled to your own facts.”

Credit for the pieces go to Susie Poppick (CNN) and the New York Times.