Nordex Pulls Out as USA Wind Energy Begins to Collapse – UPDATED

Nordex, one of the major wind turbine manufacturers in the world, is going to close its manufacturing plant in Jonesboro, Arkansas and return production to Germany.

The plant, lured to Arkansas with millions of dollars in state incentives, will cease production after it fills current orders.

When Nordex officials and the Jonesboro Regional Chamber of Commerce announced plans to build the $100 million facility in the Craighead Technology Park in 2008, they said the wind turbine manufacturer would employ at least 700 workers with average wages of $17 an hour.

READ MORE:  http://northeastwindmills.com/nordex-pulls-out-as-usa-wind-energy-collapse-begins/

Texas pumping more oil than some OPEC countries

We all know oil production in Texas has soared in recent years. But putting the rise in graphic form shows just how phenomenal the energy turnaround has been: The surge looks exponential.

In March, Texas oil production reached its highest level since 1984. That month, the Lone Star State pumped more than 74 million barrels of crude from the ground, which means if Texas were a country, it would be one of the 15 largest oil producers in the world.

READ MORE:  http://fuelfix.com/blog/2013/07/10/texas-oil-surges-to-highest-level-since-1984/?cmpid=hpts

Wal-Mart says it will pull out of D.C. plans should city mandate ‘living wage’

The world’s largest retailer delivered an ultimatum to District lawmakers Tuesday, telling them less than 24 hours before a decisive vote that at least three planned Wal-Marts will not open in the city if a super-minimum-wage proposal becomes law.

A team of Wal-Mart officials and lobbyists, including a high-level executive from the mega-
retailer’s Arkansas headquarters, walked the halls of the John A. Wilson Building on Tuesday afternoon, delivering the news to D.C. Council members.

The company’s hardball tactics come out of a well-worn playbook that involves successfully using Wal-Mart’s leverage in the form of jobs and low-priced goods to fend off legislation and regulation that could cut into its profits and set precedent in other potential markets. In the Wilson Building, elected officials have found their reliable liberal, pro-union political sentiments in conflict with their desire to bring amenities to underserved neighborhoods.

READ MORE:  http://www.washingtonpost.com/local/dc-politics/wal-mart-says-it-will-pull-out-of-dc-plans-should-city-mandate-living-wage/2013/07/09/4fa7e710-e8d0-11e2-a301-ea5a8116d211_story.html

Delaware Economic Index for July 2013 from Treasurer Chip Flowers

Friends of the Delaware State Treasury - 

Attached for your review is the Delaware Economic Index for July 2013.  As you know, the new and improved interactive Index provides key economic and financial data about the First State over the past 60 days.  To view the complete Index, please click the image below or click here.  If you have any comments or questions, please do not hesitate to contact your Delaware State Treasury at (302) 672-6700 or visit our website at treasury.delaware.gov.   Thank you!
Best,

State Treasurer Chip Flowers

A Message from your State Treasurer

 

To People of the State of Delaware:

 

Welcome to the July 2013 edition of the Delaware Economic Index. 

 

Delaware’s economy remains at a “fair” level. The state unemployment rate was 7.2% in May as the rate continues to remain above 7%.

 

Over the past two months the State Treasury announced a proposed deal with Fidelity Investments to reduce fees charged to eligible participants in the State’s Deferred Compensation plans. The agreement would benefit up to 11,000 state employees and result in an aggregate savings to our state employees of $500,000 over a three-year period. The deal was made possible due to the success of the Treasury’s outreach efforts, which increased state employee participation rates to a level needed to negotiate lower fees. My administration will work to find every possible means to lower fees charged by those who have contracts with the State Treasury. 

 

The General Assembly passed a balanced budget of $3.7 billion for Fiscal Year 2014. The big economic story in Delaware during this period was the announcement by The Data Centers LLC to invest $1 billion to create a data management and storage facility in Newark. The project is projected to generate 290 full-time jobs and 50 part-time jobs. 

 

Also, Federal Reserve officials stated Delaware is well-positioned for future economic growth, regional manufacturing resumed growth and the regional economy’s economic growth rate accelerated. However, Delaware economic growth in 2012 was only 0.2%.

 

The national economic climate remained modest. First quarter economic growth was revised downward to 1.8% and the national unemployment rate was 7.6% inJune, which represented no change since March. An estimated net 195,000 jobs were created in June while the revised final data showed a gain of 195,000 jobs in May and an increase of approximately 199,000 net jobs inApril. Worker productivity resumed growth in the first quarter of 2013, but remained at a low annualized rate of 0.5%. There remains an absence of any fiscal stimulus from Washington, but the Federal Reserve has continued its accommodative monetary stimulus. However, Chairman Ben Bernanke stated the Federal Reserve may slow down the pace of its bond purchases later this year and cease the program in mid-2014. These changes are contingent on the reaching of economic benchmarks.

 

This month’s special feature is an overview of the Federal Reserve System. The Federal Reserve plays a crucial role in our economy and one of my goals upon entering office was to build a strong working relationship with the Federal Reserve and other key federal agencies. I am pleased to say we now have such a relationship. 

 

If you have any comments on our recent work or in general, feel free to e-mail me at statetreasurer@state.de.us or call (302) 672-6700.

 

We are here to serve you. 

 

Best,

 

Chip Flowers,

Delaware State Treasurer


PLEASE FOLLOW THIS LINK TO VIEW THE ENTIRE REPORT:   http://treasury.delaware.gov/wp-content/uploads/Delaware-Economic-Index-7-2013.pdf

Recovery woes: America's second-largest employer is a temp agency

Behind Wal-Mart, the second-largest employer in America is *Kelly Services, a temporary work provider.

Friday's disappointing jobs report showed that part-time jobs are at an all-time high, with 28 million Americans now working part-time. The report also showed another disturbing fact: There are now a record number of Americans with temporary jobs.

Approximately 2.7 million, in fact. And the trend has been growing.

In the first quarter of 2013, U.S. staffing companies employed an average of 2.86 million temporary and contract workers, or 2 percent of all non-farm employment in the United States, according to the American Staffing Association. This represents a 2.9 percent growth from the same period in 2012. For just the month of June, there was a 6.7 percent growth in the number of staffing jobs than last year.

READ MORE:  http://washingtonexaminer.com/recovery-woes-americas-second-largest-employer-is-a-temp-agency/article/2532778

US Relaxes Health Law Income, Insurance Status Rule for Exchanges

Days after delaying health insurance requirements for employers, the Obama administration has decided to roll back requirements for new state online insurance marketplaces to verify the income and health coverage status of people who apply for subsidized coverage.

President Barack Obama's healthcare reform law is slated to begin offering health coverage through state marketplaces, or exchanges, beginning October 1. But to receive tax subsidies to help buy insurance, enrollees must have incomes ranging from 100 percent to 400 percent of the federal poverty line and not have access to affordable insurance through an employer.

Until now, the administration had proposed that exchanges verify whether new applicants receive employer-sponsored insurance benefits through random checks. It also sought to require marketplaces to verify each enrollee's income status.

READ MORE:  http://www.cnbc.com/id/100869332

US Relaxes Health Law Income, Insurance Status Rule for Exchanges

Days after delaying health insurance requirements for employers, the Obama administration has decided to roll back requirements for new state online insurance marketplaces to verify the income and health coverage status of people who apply for subsidized coverage.

President Barack Obama's healthcare reform law is slated to begin offering health coverage through state marketplaces, or exchanges, beginning October 1. But to receive tax subsidies to help buy insurance, enrollees must have incomes ranging from 100 percent to 400 percent of the federal poverty line and not have access to affordable insurance through an employer.

Until now, the administration had proposed that exchanges verify whether new applicants receive employer-sponsored insurance benefits through random checks. It also sought to require marketplaces to verify each enrollee's income status.

READ MORE:  http://www.cnbc.com/id/100869332

Back To Berlin: Obama Should Take a Second Look at German Policies Wind

While running for president in 2008, then-Sen. Obama delivered a speech in Germany in which he urged the world to “look at Berlin” for inspiration to “save this planet” by curbing carbon dioxide emissions. Five years later, President Obama is returning to the country he once heralded as a model for the world, yet history has not played out as President Obama hoped.

Since 2008, Germany has seen dramatically higher electricity prices because of its massive subsidies for renewable energy. And despite Germany’s “green” rhetoric, the country is actually building a large amount of coal-fired electricity generation.

When candidate and later President Obama said that we should look at Berlin for energy policy advice, we listened. In 2009, the Institute for Energy Researched commissioned a study which found that Germany’s approach “failed to harness the market incentives needed to ensure a viable and cost-effective introduction of renewable energies.” The study also discovered that German energy policies had driven up the price of electricity by nearly 20 percent.

READ MORE:  http://www.instituteforenergyresearch.org/2013/06/19/back-to-berlin-obama-should-take-a-second-look-at-german-policies/

Dow Will Hit 60,000 in 20 Years, Ron Baron Says

On June 20, a day when investors were heading for the hills and the market was down sharply, Ron Baron's Baron Capital saw its strongest inflows of the year.

The markets plunged that day after Federal Reserve Chairman Ben Bernanke indicated the central bank was getting ready to exit its extreme monetary easing program.

When asked about the recent equity market sell-off that accompanied Fed fears, the renowned buy-and-hold investor stressed buying and selling on news is not a good strategy.

READ MORE:  http://www.cnbc.com/id/100869337

President’s climate plan panders to environmentalists, out of touch with reality

The climate change policy that President Barack Obama proposed last week panders to environmentalists’ visions of a pollution-free, energy-efficient world, but is so out of touch with the economic and energy realities of today, it’s sure to remain just a dream.

Through presidential decree, Obama aims to reduce greenhouse gas emissions, which are said to cause global warming, by nearly one-fifth by 2020. His proposal accomplishes this by giving the Environmental Protection Agency the authority to regulate and cap carbon emissions from existing power plants, all without any congressional input. The president’s plan is dependent on the notion that the U.S. will lessen its reliance on coal, which now powers about 40 percent of U.S. electricity.

The president’s anti-carbon stance is “for the sake of our children,” he said to the American public at least nine times in a 10-minute speech given last week, threatening anyone, especially industry, to stand up against him. His plan, however, when combined with current EPA environmental standards, may drive about one-third of U.S. coal-fired power plants into retirement, cause regional unemployment, and make electricity bills spike nationwide, according to industry analysts. In his speech last week, the president told us not to worry about these concerns.

Read more: http://dailycaller.com/2013/07/02/presidents-climate-plan-panders-to-environmentalists-out-of-touch-with-reality/#ixzz2ZDRK2nC6

Niall Ferguson: The Regulated States of America

Tocqueville saw a nation of individuals who were defiant of authority. Today? Welcome to Planet Government.

In "Democracy in America," published in 1833, Alexis de Tocqueville marveled at the way Americans preferred voluntary association to government regulation. "The inhabitant of the United States," he wrote, "has only a defiant and restive regard for social authority and he appeals to it . . . only when he cannot do without it."

Unlike Frenchmen, he continued, who instinctively looked to the state to provide economic and social order, Americans relied on their own efforts. "In the United States, they associate for the goals of public security, of commerce and industry, of morality and religion. There is nothing the human will despairs of attaining by the free action of the collective power of individuals."

READ MORE:  http://online.wsj.com/article/SB10001424127887324021104578551291160259734.html

WIDESPREAD ECONOMIC GROWTH IN 2012

Real gross domestic product (GDP) increased in 49 states and the District of Columbia in 2012, according to new statistics released today by the U.S. Bureau of Economic Analysis (BEA) that breakdown GDP by state.¹ Durable–goods manufacturing, finance and insurance, and wholesale trade were the leading contributors to real U.S. economic growth. U.S. real GDP by state grew 2.5 percent in 2012 after a 1.6 percent increase in 2011.

Real GDP increased in all eight BEA regions in 2012, with growth accelerating in seven of eight regions. The Great Lakes region was the only region where growth decelerated relative to growth in 2011. The Southwest region grew the fastest (4.1 percent), led by Texas with a 4.8 percent increase. 

READ MORE:  http://www.bea.gov/newsreleases/regional/gdp_state/2013/gsp0613.htm

We’re Rich Again! So Why Don’t We Feel It?

By many measures, Americans should be feeling flush.

The Federal Reserve reports that total household wealth in America hit an all-time high in the first quarter, to $70.4 trillion. That's even higher than $66.8 trillion in the roaring days of 2007—and nearly 50 percent higher than the down-and-out recession trough of $54.1 trillion in 2009.

The stock market, despite some recent slippage, is still close to all-time highs, filling up pension plans and stock-based pay. And housing prices are up double digits in many part of the country, adding trillions of dollars to the wealth of home-owning Americans.

READ MORE:  http://www.cnbc.com/id/100799221

America Falls Behind in Creating Rich Entrepreneurs

The creation myth of American wealth is almost always rooted in the entrepreneur.

It's the two kids who start a computer company in their garage or dorm room. Or the former standup comic who creates form-shaping undergarments, or the South African immigrant who creates a new electric car and private space program.

But despite the high-profile examples, America may actually be falling behind the rest of the world when it comes to creating entrepreneurial wealth. A new study from Barclays, "Origins and Legacy: the Changing Order of Wealth Creation," finds developing countries now lead the U.S. when comes to wealth creation by entrepreneurs.

READ MORE:  http://www.cnbc.com/id/100821311

Green energy crusade spiking prices in Germany

Early in his first term, President Barack Obama held up Germany as a role model for green energy policy and combating global warming. However, following Berlin’s lead on green energy could lead to skyrocketing energy prices, say conservative groups.

“At precisely the moment that Europe comes to a sobering recognition of its failed energy policies, the Obama administration is punch drunk on expensive green energy,” said Benjamin Cole, spokesman for the Institute for Energy Research. “Next month, Obama will return to Berlin for another speech, this time at the Brandenburg Gate. Maybe he’ll look at Berlin this time, and back away from the European-style energy policies that will harm the U.S. just like they have Germany.”

Read more: http://dailycaller.com/2013/06/14/critics-of-u-s-green-subsidies-point-to-germany/#ixzz2YeJKH5SR

GM slashes Chevy Volt prices to spur flagging sales

With signs that sales of its Chevrolet Volt battery car could be coming unplugged, General Motors is offering potential buyers as much as $5,000 in incentives – making it the latest maker to try to cut prices in a bid to boost lagging demand for electric vehicles.

Whether the move will work remains to be seen, as GM has already trimmed the price on the Volt plug-in hybrid. But rival Nissan has had some clear success after cutting the price on its own Leaf battery-electric vehicle, or BEV, earlier this year.

READ MORE:  www.nbcnews.com/business/gm-slashes-chevy-volt-prices-spur-flagging-sales-6C10272201

True cost of Britain's wind farm industry revealed

Every job in Britain’s wind farm industry is effectively subsidised to the extent of £100,000 per year, The Telegraph can disclose. 

 

 A new analysis of government and industry figures shows that wind turbine owners received £1.2billion in the form of a consumer subsidy, paid by a supplement on electricity bills last year. They employed 12,000 people, to produce an effective £100,000 subsidy on each job.

The disclosure is potentially embarrassing for the wind industry, which claims it is an economically dynamic sector that creates jobs. It was described by critics as proof the sector was not economically viable, with one calling it evidence of “soft jobs” that depended on the taxpayer.

 

The subsidy was disclosed in a new analysis of official figures, which showed that:

 

• The level of support from subsidies in some cases is so high that jobs are effectively supported to the extent of £1.3million each;

READ MORE:  http://www.telegraph.co.uk/earth/energy/windpower/10122850/True-cost-of-Britains-wind-farm-industry-revealed.html

 

How Bad is Delaware's Labor Market?

How Bad is Delaware's Labor Market?

Across a variety of measures, Delaware's labor market is hurting.

 

First, the state's official unemployment rate is 7.2%, double the historic average of 3.5%. This means 32,000 persons have actively looked for a job in the past four weeks without success. Five years ago this group totaled 15,000 Delawareans.

Today the U.S. Bureau of Labor Statistics (BLS) collects more detailed data on "discouraged workers."   Discouraged workers are people who are not in the labor force but want to, and are available for, work, and had looked for a job sometime in the prior 12 months. They have not searched for work in the prior 4 weeks, specifically because they believed no jobs were available for them. There are an estimated 4,000 discouraged workers in Delaware at this time. 

In addition, the BLS measures the extent of "marginally attached" workers. The criteria for the marginally attached are the same as for discouraged workers, with the exception that any reason could have been cited for the lack of job search in the prior 4 weeks. Currently the population of marginally attached workers in Delaware is estimated to be 27,000.

So, totaled together, the unemployed, the discourage workers, and the marginally attached workers make up 14% of Delaware's labor force.

And it must be noted the pain is not evenly distributed. According to the latest American Community Survey data the unemployment rate for persons with less than a high school degree is 16% and drops to less than 4% for workers with a bachelor's degree or more.

Finally, there is the issue of the employment rate. Defined as the percent of the total population that is employed, the employment rate typically rises as the unemployment rate falls, and falls as the unemployment rate rises. As shown in the graph below, however, the last three years Delaware has experienced a departure from this relationship.

In 2006, as the state's unemployment rate was 3.5%, the employment rate was 63%. The state unemployment rate peaked at 8% in 2010 and has been falling since. Instead of rising as the unemployment rate has fallen, Delaware's employment rate has stalled out around 58%. The nation has followed a similar pattern.

National research concludes there are two reasons why workers who have dropped out of the labor force have stopped actively seeking work during the past three years. First, the economy is sluggish and uncertain, making companies reluctant to hire new employees. Second, there has been a substantial surge in enrollment in government benefit programs tied to being out of the labor force, such as disability and food stamps.

Given the comprehensive picture, the road back to a healthy Delaware labor market is going to be steep and challenging.

Dr. John E. Stapleford

Director

Center for Economics and Policy Analysis

 

Open the PDF attachment to see the easy-to-read graph on Delaware's unemployment.

Download Document Here.

Obamacare? We were just leaving …

This is an incredible story.  An amendment was put on Obamacare so that federal government employees would be treated like other citizens.  Now there's tremendous pressure to "fix" this problem, because if it isn't a lot of these employees are planning on leaving before the end of the year.

To put this in perspective, a local construction company told us today they were dropping employee health insurance on January 1.  No one is suggesting a fix for that.  Apparently it's okay for non-government workers to suffer, but not okay for the government workers.

Dozens of lawmakers and aides are so afraid that their health insurance premiums will skyrocket next year thanks to Obamacare that they are thinking about retiring early or just quitting.

The fear: Government-subsidized premiums will disappear at the end of the year under a provision in the health care law that nudges aides and lawmakers onto the government health care exchanges, which could make their benefits exorbitantly expensive.

READ MORE: http://www.politico.com/story/2013/06/obamacare-lawmakers-health-insurance-92691.html#ixzz2XnhYBopJ

http://www.politico.com/story/2013/06/obamacare-lawmakers-health-insurance-92691.html?hp=f2