Thursday, February 28, 2013

Why your boss is dumping your wife

Companies are dropping health coverage for spouses to cut costs

 

Companies have a new solution to rising health-insurance costs: Break up their employees’ marriages. 

 

By denying coverage to spouses, employers not only save the annual premiums, but also the new fees that went into effect as part of the Affordable Care Act. This year, companies have to pay $1 or $2 “per life” covered on their plans, a sum that jumps to $65 in 2014. And health law guidelines proposed recently mandate coverage of employees’ dependent children (up to age 26), but husbands and wives are optional. “The question about whether it’s obligatory to cover the family of the employee is being thought through more than ever before,” says Helen Darling, president of the National Business Group on Health.

See: When your boss doesn’t trust your doctor
 
While surcharges for spousal coverage are more common, last year, 6% of large employers excluded spouses, up from 5% in 2010, as did 4% of huge companies with at least 20,000 employees, twice as many as in 2010, according to human resources firm Mercer. These “spousal carve-outs,” or “working spouse provisions,” generally prohibit only people who could get coverage through their own job from enrolling in their spouse’s plan. 

Wednesday, February 27, 2013

Boomers' Credit-Card Profile Resembles Gen Y's

Sandy Harsh never expected to find herself with $16,800 in credit-card debt and her retirement dreams drifting farther away.

Harsh, an IT professional from Tuscola, Illinois, is 62, around the age at which a lot of people start actively planning to retire to a white-sandy beach with a frozen margarita in hand.

Harsh's debt snuck up on her as she helped her two daughters with college and living costs. She went back to school after a divorce and dealt with unexpected expenses such as big dental bills. Now she has about $300 a month in minimum payments, spread across three credit cards, and the balance never seems to go down because of all the interest she is paying.

READ MORE:  http://www.cnbc.com/id/100470176

Tuesday, February 26, 2013

Could 2013 gasoline prices hit record highs?

Gasoline prices typically rise heading into peak spring and summer driving seasons. But 2013's runup is earlier and faster than in previous years.

 

After sending consumers into sticker shock the past month, how much more can gasoline prices climb? Another 20 to 50 cents a gallon — a level that could propel the cost of gasoline, now $3.77 a gallon, to all-time highs, some experts say.

Gasoline prices typically climb from February to Memorial Day on expectations of rising consumption and costlier summer-blend gas. But so far this year, prices are surging sooner and faster than ever before — up 47 cents since mid-January.

24/7 WALL ST.: States with the highest gas prices

Consumers in some metropolitan areas, such as Southern California, are already paying nearly $5.20 a gallon, up more than 75 cents since December lows.

READ MORE:http://www.usatoday.com/story/money/nation/2013/02/19/2013-gasoline-prices-could-flirt-with-all-time-highs/1930681//

Monday, February 25, 2013

Fed’s Holdings of U.S. Gov't Debt Hit Record $1,696,691,000,000; Up 257% Under Obama

CNSNews.com) - In data released Thursday afternoon, the Federal Reserve revealed that its holdings of U.S. government debt had increased to an all-time record of $1,696,691,000,000 as of the close of business on Wednesday.

The Fed's holdings of U.S. government debt have increased by 257 percent since President Barack Obama was first inaugurated on Jan. 20, 2009, and the Fed is currently the single largest holder of U.S. government debt.

As of the end of November, according to the U.S. Treasury, entities in Mainland China owned about $1,170,100,000,000 in U.S. government debt, making China the largest foreign holder of U.S. government debt.

READ MORE:  http://cnsnews.com/news/article/fed-s-holdings-us-govt-debt-hit-record-1696691000000-257-under-obama

Friday, February 22, 2013

China Eclipses U.S. as Biggest Trading Nation

China surpassed the U.S. to become the world’s biggest trading nation last year as measured by the sum of exports and imports of goods, official figures from both countries show.

U.S. exports and imports of goods last year totaled $3.82 trillion, the U.S. Commerce Department said last week. China’s customs administration reported last month that the country’s trade in goods in 2012 amounted to $3.87 trillion.

China’s growing influence in global commerce threatens to disrupt regional trading blocs as it becomes the most important commercial partner for some countries. Germany may export twice as much to China by the end of the decade as it does to France, estimated Goldman Sachs Group Inc.’s Jim O’Neill

READ MORE:  http://www.bloomberg.com/news/2013-02-09/china-passes-u-s-to-become-the-world-s-biggest-trading-nation.htmlhttp://www.bloomberg.com/news/2013-02-09/china-passes-u-s-to-become-the-world-s-biggest-trading-nation.html

Thursday, February 21, 2013

Economic Growth Starts at Home

Economic Growth Starts at Home

 In his recent State of the State address the Governor asserted that the legislated expiration of both his earlier 17% increase in Delaware's top personal income tax rate and the 34% increase in the average gross receipts tax rates were "unaffordable tax cuts today."
 
How has Delaware fared since Governor Markell's first State of the State speech and proposed budget? Between January of 2009 and today Delaware has lost almost 7,000 jobs, the unemployment rate is unchanged at 6.9%, the labor force has fallen by more than 3,000, and per capita income remains below the U.S. average.
 
Governor Markell says he does not support "turning our backs on our most vulnerable citizens" or
"compromising public safety" by imposing significant cuts to the budget.  That said, are there easy examples of spending cuts which are needed?
 
Take, for example, the Delaware Department of Education (DDOE), the top spending department in the state.
 
This fiscal year DOE will spend $604,000 on on-line periodicals, even though these are available through the University of Delaware's Morris Library. A report issued in 2008 recommended consolidation of school districts to save administrative overhead, but no action has been taken and Delaware ranks 8th among the states in administrative spending per pupil. Delaware spends over $81 million a year on student transportation, which is more than 47 other states.
 
And what is the opportunity cost to Delaware's economy of keeping taxes higher and not cutting any state spending? 
 
Growth in jobs within a state is a result of the net migration of firms, the birth and death of firms, and the expansion and contraction of firms. Recent analysis of the National Establishment Time-Series by the Illinois Policy Institutes (IPI) provides important insights for Delaware.
 
IPI examined job data spanning 1995 through 2009. Over that period employment in Delaware rose just 1.6%, ranking Delaware 41st among the states and well below the national increase of 11.6%.
 
The lack of job growth wasn't due to the net out-migration of companies from Delaware. Over the study period net-migration added 2.3% to the total jobs in the state, ranking Delaware second among all states. Certainly Delaware's economic development community's business recruiting efforts paid off.
 
Delaware did not fare as well with respect to net start-ups. The jobs created by business start-ups in Delaware fell short of the jobs lost through the closure of businesses. This placed Delaware in the bottom fifth of the states in job change from the birth and death of firms.
 
Finally, and most significantly, Delaware ranked dead last among the states in the net jobs gained through the expansion and contraction of existing firms. Over the study period Delaware had a net gain of 8% from the process of expansion and contraction, which is half of the U.S. average across the U.S and less than a third of the net gains in the leading states of Arizona and Florida. Delaware ranked fourth to last in rate of expansion of existing firms.
 
The lackluster performance of Delaware's existing firms is a major factor behind the state's poor job growth. It is a reflection of higher taxes, regulations, relative energy costs, and poor quality public schools. The state doesn't need to do a better job recruiting; it needs to create the conditions that encourage investment and expansion of its existing businesses over the long haul.
 
Allowing households to keep and spend more of their income, and allowing businesses to reinvest their gross receipts rather than turning them over to the state, requires belt tightening by state government in the short-run, but will restore economic growth to Delaware over the long-run.
 
Dr. John E. Stapleford, Director
Center for Economic Policy and Analysis

Wednesday, February 20, 2013

Feud over sign could force Fairfax’s Olde Belhaven to sell square

The feud that consumed Fairfax County’s Olde Belhaven would span four years and cost the community as much as $400,000, and it was ignited by one of the smallest of sparks: an Obama for President sign.

The modest placard Sam and Maria Farran planted in their yard during the 2008 election put them on a collision course with the neighborhood homeowners association. It was four inches taller than the association’s covenants allowed.

“Need I say more! This would lead to chaos,” a neighbor fretted in an e-mail about the precedent that would be set if the sign wasn’t removed. “Our property values would be put at risk.”

Such HOA disputes are as suburban as cul-de-sacs and two-car garages, but few metastasize into legal battles that spend years in the courts, break legal ground and bankrupt the HOA.

READ MORE:  http://www.washingtonpost.com/local/fairfax-homeowners-group-humbled-by-court-battle-with-residents/2013/02/09/d46f9bec-6652-11e2-93e1-475791032daf_story.html

Tuesday, February 19, 2013

The Age of Neo-Feudalism: A Government of the Rich, by the Rich, and for the Corporations

By John W. Whitehead

“The shaping of the will of Congress and the choosing of the American president has become a privilege reserved to the country’s equestrian classes, a.k.a. the 20% of the population that holds 93% of the wealth, the happy few who run the corporations and the banks, own and operate the news and entertainment media, compose the laws and govern the universities, control the philanthropic foundations, the policy institutes, the casinos, and the sports arenas.” – Journalist Lewis Lapham
~
The pomp and circumstance of the presidential inauguration has died down. Members of Congress have taken their seats on Capitol Hill, and Barack Obama has reclaimed his seat in the White House. The circus of the presidential election has become a faint memory. The long months of debates, rallies, and political advertisements have slipped from our consciousness. Now we are left with the feeling that nothing has really changed, nor will it.

This is not by accident. The media circus leading up to the elections, the name calling in the halls of Congress, the vitriol and barbs traded back and forth among people who are supposed to be working together to improve the country, are all components of the game set up by those who run the show. The movers and shakers behind these engaging, but ultimately trite, political exercises are the elite, the so-called upper class, who benefit from the status quo. This status quo is marked by an economic crisis with no end in sight, by the slow but steady growth of a police state aimed at the lowest rungs of society, and a political circus which keeps us enraptured long enough that we don’t question what’s really going on.

Meanwhile, this elite, composed of corporations profiting off of our ignorance, avoid being brought to task for their destruction of democratic governance and the economy. These are the corporations who sent our economy into a tail spin and were then rewarded with taxpayer money. These are the corporations who write laws which eliminate real competition in the market in order to secure their profits through lucrative government contracts. These are the corporations who avoid criminal prosecution, and are instead slapped with meager fines which do nothing to halt their felonious activities.

We now live in a two-tiered system of justice and governance. There are two sets of laws: one set for the government and the corporations, and another set for you and me.

The laws which apply to the majority of the population allow the government to do things like rectally probe you during a roadside stop, or listen in on your phone calls and read all of your email messages, or indefinitely detain you in a military holding cell. These are the laws which are executed every single day against a population which has up until now been blissfully ignorant of the radical shift taking place in American government.

Then there are the laws constructed for the elite, which allow bankers who crash the economy to walk free. They’re the laws which allow police officers to avoid prosecution when they strip search non-violent criminals, or taser pregnant women on the side of the road, or pepper spray peaceful protestors. These are the laws of the new age we are entering, an age of neo-feudalism, in which corporate-state rulers dominate the rest of us, where the elite create the laws which can result in a person being jailed for possessing marijuana while bankers that launder money for drug cartels walk free.

Unfortunately, this two-tiered system of justice has been a long time coming. The march toward an imperial presidency, to congressional intransigence and impotence, to a corporate takeover of the mechanisms of government, and the division of America into haves and have nots has been building for years.
Journalist Chris Hedges, one of the few voices to speak against the corporate-state, who has put himself on the line by making a legal challenge to the President’s authority to indefinitely detain American citizens, summarizes the situation at hand:

 “Our passivity has resulted… in much more than imperial adventurism and a permanent underclass. A slow-motion coup by a corporate state has cemented into place a neofeudalism in which there are only masters and serfs. And the process is one that cannot be reversed through the traditional mechanisms of electoral politics.”
Indeed, electoral politics are off the table as a means of reforming the system. They are so thoroughly corrupted by corporate money that there is no chance, even for a well-meaning person, to affect any real change through Congress.

Just consider the last election cycle. Both parties spent $1 billion each attempting to get their candidate elected to the presidency. This money came from rich donors and corporate sponsors, intent on getting their candidate in office. This massive spending was mirrored at the congressional level, where business lobbying soared in the last three months of the year. The U.S. Chamber of Commerce alone spent over $125 million attempting to influence members of Congress, an 88 percent increase from 2011.

Indeed, lobbyists are the source of much corruption and exchanging of money in Washington, and their attempts to woo Congressmen only exacerbate the problems inherent to the institution. Jack Abramoff should know. Jailed for bribing public officials, the former lobbyist insists that the system is every bit as corrupt now as it was when he was convicted. From job offers for staffers and Congressmen after they leave Capitol Hill, to taking representatives to sporting events and fancy restaurants, there is no shortage of methods of influencing public officials to enact the policies of special interests. According to Abramoff, these tactics are still in use today, and “the system hasn’t been cleaned up at all.”

Once their foot is in the door, these lobbyists then offer up language for legislation that is “so obscure, so confusing, so uninformative, but so precise” as to make passage as easy as possible. This legislation cements the privilege of the corporations to do as they please, making all of their dubious activities “legal.”

This lobbying is buoyed by a congressional lifestyle which demands that our representatives spend the majority of their time fund raising for campaigns, rather than responding to the needs of their constituents. In November 2012, the Democratic House leadership offered a model daily schedule to newly elected Democrats which suggests a ten-hour day, five hours of which are dominated by “call time” and “strategic outreach,” including fund raisers and correspondence with potential donors. Three or four hours are for actually doing the job they were elected to do, such as attending committee meetings, voting on legislation, and interacting with constituents.

When half of one’s time is devoted to asking for money from rich individuals and special interests, there is no way that he can respond to the problems which pervade the country. And yet, even Congressmen in safe seats are expected to fundraise constantly so as to support their colleagues in competitive districts. As Rep. John Larson (D-Conn.) put it, “…this is the mother’s milk of what [Congressmen] need to do to try to sustain their campaigns, and it’s the only system they have to work with.”

Thus, even well-meaning Congressmen face a Catch-22 where they are pushed to fundraise to secure their seats, but then once in office, it is basically impossible for them to do their jobs. The full ramifications of this are laid out by Rep. Brad Miller (D-NC):

“Any member who follows that schedule will be completely controlled by their staff, handed statements that their staff prepared, speaking from talking points they get emailed from leadership... It really does affect how members of Congress behave if the most important thing they think about is fundraising. You end up being nice to people that probably somebody needs to be questioning skeptically… You won’t ask tough questions in hearings that might displease potential contributors, won’t support amendments that might anger them, will tend to vote the way contributors want you to vote.”

The influence of corporate money on Congress is exacerbated by how out of touch Congressmen are with the daily struggles of most Americans. In February 2012, the median net worth of Congressmen was $913,000 as compared to $100,000 for the rest of the population. Aside from being immediately wealthy, Congressmen also weathered the tribulations of the financial crisis much better than the average American. An analysis of Congressional finances by the Washington Post in October 2012 revealed that the wealthiest one-third of Congress was largely shielded from the effects of the Great Recession. While the median household net worth of the average American dropped by 39 percent between 2007 and 2010, the median wealth of Congressmen rose 5 percent. It rose 14 percent for the wealthiest one-third.

At a time when most people in the country are suffering, Congressmen are profiting. This alone should demonstrate how out of touch our elected leaders have become. Members of Congress, entrusted to represent the best interests of the average American, instead play out a stilted, ineffective soap opera on our TV screens, complete with phony discussions of fiscal cliffs and debt ceilings which take the place of real proposals for meaningful change in the country.

There is no voice for the working American in the halls of Congress, the American who was promised a life beyond taxes, debt, and unemployment. There is no voice for the peace loving American, the American who understands that America’s military might is meant for defense of the homeland, not looking for trouble in faraway lands. There is no voice for the American who expects his representatives to abide by the Constitution, who laments the way Congress, the President, and the Supreme Court work together to take away our rights piece by piece.

Friday, February 15, 2013

Currency Wars Return, 1930s Style: Who Will Lose Out?

As countries try to weaken their currencies to boost exports, the risk of a currency war similar to events seen in the 1930s has heightened, and policymakers are making sure they are on the winning side, according to Morgan Stanley.

The balance of power now rests with Japan, according to the bank, as Japan's policy-makers' more dovish approach looks set to bring the world a step closer to a currency war.

The Bank of Japan doubled its inflation target to 2 percent in January and made an open-ended commitment to continue buying assets from next year. This follows a leadership change, with new Prime Minister Shinzo Abe openly calling for aggressive monetary stimulus from the country's central bank.

READ MORE:  http://www.cnbc.com/id/100441340

Thursday, February 14, 2013

MICHAEL SNEED: Gov. Pat Quinn to seek minimum-wage hike to $10 an hour

Are our wallets about to gain weight?

Sneed has learned that Gov. Pat Quinn plans to propose an increase in the state minimum wage in Wednesday’s State of the State address, which would raise it to at least $10 an hour over the next four years.

◆ Translation: The state’s current minimum wage of $8.25 will increase if Quinn has his way.

“The governor feels very strongly that nobody should work 40 hours a week and live in poverty,” said a Sneed source familiar with Quinn’s proposal, which is similar to a bill introduced in 2011 by state Sen. Kimberly Lightford.

Wednesday, February 13, 2013

Examiner Editorial: Antiquated pension plans weigh down U.S. companies

Liberals get so nostalgic about the 1950s American economy. Why, they ask, can't corporations be forced to act as they did then, with their generous pay and guaranteed retirement benefits? The irony is that many companies are in dire straits today -- becoming less competitive, facing grimmer prospects and not hiring as many new workers as they would otherwise -- precisely because they are stuck with the World War II-era compensation model for which liberals pine.

Three and a half years into the Obama recovery, America's economy is contracting again and the unemployment rate ticking upward. Many big employers are still not expanding their operations and workforce. The reasons for this vary by company, but in many cases the culprit is crushing pension debt. Rather than invest in their own operations, companies like Ford, Boeing and Verizon have been forced to pour billions into their workers' defined benefit pension funds just to make up for their poor market performance and keep them afloat. And even then, some of the funds are barely scraping by.

READ MORE:  http://washingtonexaminer.com/examiner-editorial-antiquated-pension-plans-weigh-down-u.s.-companies/article/2520517?custom_click=rss&utm_campaign=Weekly+Standard+Story+Box&utm_source=weeklystandard.com&utm_medium=referral

Tuesday, February 12, 2013

Commuters' wasted time in traffic costs $121B

AUSTIN, Texas (AP) — An annual study of national driving patterns shows that Americans spent 5.5 billion additional hours sitting in traffic in 2011.

The Texas A&M Transportation Institute released a report Tuesday that found Americans are adapting to road congestion by allowing, on average, an hour to make a trip that would take 20 minutes without traffic. The Urban Mobility Report also says clogged roads cost Americans $121 billion in time and fuel in 2011.

It also determined that the 10 most congested cities are Washington, Los Angeles, San Francisco-Oakland, New York-Newark, Boston, Houston, Atlanta, Chicago, Philadelphia and Seattle.

The report is one of the key tools used by experts to solve traffic problems. But the institute advises that every community has unique challenges and require different, multi-faceted approaches to solving congestion.

READ MORE:  http://news.yahoo.com/commuters-wasted-time-traffic-costs-121b-060227096.html

Friday, February 8, 2013

Mayors Still Waiting for Economic Boost as Cities, Towns Stay 'Under Severe Pressure'

The fiscal gloom hanging over U.S. cities and local governments will lift slightly in 2013 as the pace of spending cuts slows, according to an economic assessment presented on Thursday to a mayors' conference in the U.S. capital.

Real state and local government spending will decline by 0.5 percent this year, compared to a 1.3 percent drop in 2012, said James Diffley, director of regional economics for IHS Global Insight.

"In the state and local government sector the pace of budget tightening has eased slightly and revenues have begun to improve, but as you all know all too well, municipalities remain under severe pressure," he said.
In December, local governments shed 14,000 jobs, compared to state governments that gained 4,000 jobs, according to the Labor Department, showing that cities and counties continue to struggle with spending.

Thursday, February 7, 2013

Pimco’s Gross: US Economy ‘Running Out of Time'

The financial system is like a supernova star that grows until it runs out of energy, explodes and collapses, warns Bill Gross, managing director of fund giant Pimco.

Its fuel is central banks’ loose monetary policies, which are becoming increasingly ineffective at promoting real economic growth, Gross writes in his monthly investment outlook report.

Total U.S. credit outstanding is now at $56 trillion and growing, Gross writes. “It is a monster that requires perpetually increasing amounts of fuel, a supernova star that expands and expands, yet, in the process begins to consume itself.”

Expanding credit increasingly goes to creditors and market speculators and less and less to real economic growth. Instead of promoting small-business development, investment banking is dominated by leveraged speculation and Ponzi finance when additional credit is needed just to cover interest payments.

Wednesday, February 6, 2013

US debt headed toward 200 percent of GDP even after 'fiscal cliff' deal

The nation's long-term fiscal outlook hasn't significantly improved following the recent agreement between Congress and the White House over tax and spending issues, according to a new analysis.

The "fiscal cliff" deal, combined with the debt-limit agreement of August 2011, only slightly delays the United States reaching debt-to-gross domestic product levels that would damage the economy and risk another fiscal crisis, according to a report from the Peter G. Peterson Foundation released on Tuesday.
 The agreement "may have prevented the immediate threats that the fiscal cliff posed to our fragile economic recovery, but we haven’t remotely fixed the nation’s debt problem," said Michael A. Peterson, president and COO of the Peterson Foundation.

Monday, February 4, 2013

Businessweek: World 'Plunges Into Currency War'

Many government officials around the world are concerned that massive monetary easing in numerous nations is sparking a global currency war.

Governments from Germany, to Russia, to Brazil, to Thailand have expressed worry that the world is plunging into a currency war, Bloomberg Businessweek reports.

The current focus is on Japan, where the central bank this week announced it would increase its quantitative easing and also set a target of 2 percent for inflation.

Before the Bank of Japan even revealed its policy, Bundesbank President Jens Weidmann warned Japan against politicization of monetary policy that would lead to a weaker yen.

"A consequence [of government pressure to ease], whether intended or not, could lead to an increasingly politicized exchange rate. Until now, the international monetary system has come through the crisis without a race to devaluation, and I really hope that it stays that way."

READ MORE:  http://www.moneynews.com/FinanceNews/fears-world-currency-war/2013/01/25/id/472963?s=al&promo_code=122F4-1

Friday, February 1, 2013

UK heads for triple dip as GDP contracts 0.3pc

The UK economy shrank by 0.3pc in the final three months of last year, raising the prospect of a triple dip recession, as Britain’s manufacturers suffered their worst year since the financial crisis. 

 

The official figures were the fourth quarter of negative growth in the last five and mean that the UK flatlined for last year as a whole – posting zero growth.
The economy is smaller than it was in September 2011 and still 3.3pc below its pre-crisis peak.

Making matters worse, there was scant evidence in the data that the economy is rebalancing from consumption to manufacturing. Output by Britain’s factories fell by 1.5pc in the quarter and by 1.8pc for the year as a whole – the first annual decline since 2009.

Howard Archer, economist at IHS Global Insight, described the situation as “dire” and added: “We believe the economy is essentially flat at the moment. We suspect that GDP will not return to the level seen in the first quarter of 2008 until the first half of 2015 – a gap of seven years.”

READ MORE:   http://www.telegraph.co.uk/finance/economics/9826019/UK-heads-for-triple-dip-as-GDP-contracts-0.3pc.html