economics – Page 17 – Coffee Spoons

Budget Sequestration and US Austerity

First things first, the verb is to sequester. The noun is sequestration. 1 March is not when the sequester begins. It is when the sequestration begins.

Now that we have the preliminaries out of the way, much is made of high government spending relative to revenue. However, this conversation still misses the point that government spending has fallen significantly. The New York Times charted that recent fall in spending in this graphic. This contraction is the largest drop in over 50 years. Along with the bars indicating recessions, I perhaps would have indicated major US military conflicts given the emphasis the introduction places on those events.

The piece also looks at government employment, which has been atypically lower than pre-recessionary figures. Taken in sum, the two sets of data point to an extant condition of austerity that shall only be worsened by…c’mon everyone…that’s right, the sequestration.

Credit for the piece goes to Alicia Parlapiano.

Detroit

Detroit’s population has fallen drastically while its economy has been all but eviscerated with the near-collapse of the American automotive industry. But it was not always that way. The National Post looks at Detroit over the years, starting in 1950. It’s the mapping and charting out of the decline and fall of what was once a great city.

Credit for the piece goes to Kristopher Morrison and Richard Johnson.

Follow the (Canadian Foreign Aid) Money

Canada spends quite a bit of money on foreign aid. Last week a National Post infographic looked at the targets for that aid program and in particular highlighted Haiti, a country that has received large sums after the devastating earthquake three years ago.

Credit for the piece goes to Kathryn Blaze Carlson, Mike Faille, and Richard Johnson.

Canadian Debt

Canada, along with Australia, was one of the few Western, industrialised economies to weather the global recession of 2008 fairly well. However in recent years, despite the economic boom in the energy-rich western provinces, many of Canada’s provinces have been accumulating substantial—though not yet crippling—levels of debt. Toronto’s National Post explores the federal and provincial situation using small (or perhaps medium-sized) multiples.

Credit for the piece goes to Richard Johnson.

Palestine

With Palestine admitted to the United Nations as a non-member observer state, the Middle East tensions between Israel and Palestine have reached a new level. Regardless, Palestine may now have access to international institutions and is closer to being a recognised, sovereign state. Toronto’s National Post published a large infographic looking at the state of Palestine and how the two non-contiguous territories of the West Bank and the Gaza Strip compare to each other.

Credit for the piece goes to Richard Johnson.

US Healthcare State Exchanges

Later this month the Affordable Care Act mandates states decide on how they wish to implement the state healthcare exchanges. The Guardian’s US interactive team has created this interactive application to track the state decisions. Each state is clickable to provide further details on what has been decided.

Credit for the piece goes to the Guardian’s US Interactive Team.

Taxes

Let’s face it, governments need money to function. If you want a large military, you have to fund it. If you want pension system, you have to fund it. If you want medical care for the old, the sick, and the poor, you have to fund it. If you want to give everyone unicorns made of rainbow beams, you have to fund it. And…well…nevermind.

The point is taxes. After an election that focused so heavily on them, we’re still debating them. But here are some facts about them from the New York Times. The designers, Mike Bostock, Matthew Ericson, and Robert Gebeloff used small multiples of line charts—and lots of them—to look at who pays taxes by income band and how they pay different types of taxes. I found particularly interesting the points made near the bottom of the piece about how the progressive tax system is increasingly less so.

How the American tax system is becoming less progressive

But how do these taxes compare to spending? In a separate graphic for the same article, a stacked bar chart compares revenue to expenditure. With the exception of the balanced budget during President Clinton’s administration, we have been outspending our revenue since 1980. While statements to the effect of the US national budget needs to be managed like a US household budget are both overly simplistic and naive, there is a truth in a long-term mismatch between revenue and expenditure might cause problems. That is why many see the deficit and our debt as a medium-term problem facing the United States.

Credit for the first piece goes to Mike Bostock, Matthew Ericson, and Robert Gebeloff.

The Drop in the Unemployment Rate and How to Spin It

On Friday we received the monthly jobs report. And the furore that arose with it. Principally the anger stemmed from right-leaning commentators who believed that the non-partisan Bureau of Labor Statistics, a government agency tasked with collecting data on employment among other metrics, “cooked the books”/ “massaged the figures”/ flat-out lied to show a significant drop in the unemployment rate that could not be attributed to people who had stopped looking for work—a cause of some earlier drops over the last few years. As someone who works with data originally collected from national statistics offices across the world on a daily basis, those claims touched a nerve. But I shall leave that rant for another time.

Instead let’s look at the New York Times piece that quickly followed on the outrage of fools. We can look at and analyse the data in different ways—the origin of the phrase lies, damned lies, and statistics—and surely the Republican and Democratic parties would do just that. They did. This New York Times piece shows how that can be—and was—done. It involves points of reference and context.

First the facts:

Then how the Democrats spin them:

Finally how the Republicans spin them:

But the facts themselves do not lie. 114,000 non-farm jobs were added to payrolls. The unemployment rate fell to 7.8%, the lowest rate since January 2009.

Credit for the piece goes to Mike Bostock, Shan Carter, Amanda Cox and Kevin Quealy.

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.?

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.

Credit for the piece goes to Jonathon Rivait.