By David Donald of the Center for Public Integrity and James Politi. Interactive graphic by Caroline Nevitt, Tom Pearson and Martin Stabe.
US sequestration impact per capita
Automatic US government spending cuts that took effect in March are threatening local economies across the country.
Counties that benefited from high levels of federal spending in recent years and weathered the recession better than the rest of the country could be especially hard-hit, an analysis of so-called “sequestration” by the Financial Times and the Center for Public Integrity has found.
Update, 3 October: The New Mexico county that is home to the Los Alamos National Laboratory, faces the greatest per-capita impact of any county in the United States, at more than $6,000 per person. Areas with military bases, such as Christian county, Kentucky, are also particularly hard hit. Across the 388 counties in the US that have one or more military installation, the sequestration impact per capita is $312. That is nearly twice as high as in the 2,727 counties without a military installation, where the sequestration impact per capita is $171.
Use the interactive graphic below to see how the impact is distributed around the United States and how your county fares.
“No, I don’t mind working, but I do mind dying”, the Detroit blues singer Joe Lee Carter sang in 1965. The song exemplified the bustle – and tensions – of a burgeoning industrial city. Carter was working on the production line at Ford’s Rouge plant at the time.
Unfortunately for today’s inhabitants, there hasn’t been much opportunity to work in Detroit in recent years – and there has been all too much chance of dying. Read more
By Paul Hodges
Working women supercharged western economic growth from the 1980s, as they created the phenomenon of dual-income households for the first time in history. But today, this trend is reversing as women’s participation rates decline and their earnings plateau relative to men.
This major change risks undermining a key part of the US Federal Reserve’s strategy, which assumes that reducing the US unemployment rate to 6.5 per cent will help restore economic growth. The chart shows the reversal now underway:
Britain’s official statistics agency, in its analysis of how median income households have fared over time, has found a small consolation for those on the eastern side of the Atlantic. While UK income inequality is rising, middle-earners’ incomes are more closely related to economic growth than in the US.
The Office for National Statistics used inflation-adjusted data from the US Census Bureau and International Monetary Fund that cover the years 1984 to 2008. It found that US median equivalised disposable income grew at less than half the rate of its GDP per person. For example, by 2008 – the latest year for which data are available – US GDP per person had grown by 55.3 per cent while median incomes had only grown by 26.1 per cent since 1984. Read more
Once the US presidential campaign is finished and the election won, the victorious candidate could be forgiven for thinking that the hard work has been completed. Whatever the state of the economy, the voters have chosen their set of policies and all that is needed now is to begin implementing them.
But the economy that the (re-)elected candidate thinks he is set to inherit may turn out to be quite different by the time of his inauguration. Read more