Subscribe to our RSS feed
EconLife.com connects economics to everyday life, current events and history.

Tag Archives: Republicans

Obama/Biden and Romney/Ryan Issues

Before tomorrow’s election, let’s take a look at the voting age gap. Absent since 1972, the young and the old again are voting differently.

Large in 1972 and then Absent until 2004, the Generation Voting Gap Is Back

 

The Silent Generation: The oldest slice of the population, the Silent Generation was born between 1928 and 1945. Representing 17% of all registered voters at the end of 2011, they tend toward conservative views, support less government, and are politically engaged. One of their top issues, Social Security, reflects a contradiction. The Silents tend to be Republican but favor the Democrats’ position on Social Security.

The Baby Boomers: Currently 47-65, the Baby Boomers are a potent political cohort. Numbering 37% of all registered voters, the older Boomers tend to be more Democratic than their younger peers. The concern, though, that resounds for many is uncertainty about their financial future and retirement security.

Generation X: Born between 1965 and 1980, Xers make up 26% of all registered voters. Politically, they tend to split by age. Older Xers sympathize with Republicans while those closer to 30 are more likely to vote Democratic. As for the issue they most care about, it appears to be financial health.

The Millennials: The youngest population group that votes, Millennials are currently 18 to 30 years old. relatively unengaged politically, and 17% of the electorate. 41 percent nonwhite or Hispanic, they are diverse, vote Democratic, and are almost evenly split on whether we have too much or too little government. According to a July 2012 USA TODAY/Gallup Poll, creating good jobs was the key issue for those under 30.

How to summarize the similarities and differences? I suggest looking at the table below. Although it is based on data from October 2011, still the priorities remain similar according to the more recent Gallup poll. And, for more background data, the graphs that follow it are fascinating.

Election Economics Topics:

 

Sources and Resources: The surveys on which I based my facts were from Pew (Nov. 2011) and USA TODAY Gallup (July 2012). Also, you might have some fun with this USA TODAY candidate match game. All graphs and tables are from Pew.

The Generational Divide is Reflected in Voting Preferences

The Generational Divide and Presidential Favorities

Posted by: adminEcon
Tags: , , , , , , , , , , , , , , , , , ,
Comments (0) Add a Comment

railroad...trains...15842_6.17_000006782680XSmall

Should government subsidize a railroad?

Our story starts during the 1970s when you could fly from New York to Washington, D.C. on the Eastern shuttle. Eastern left hourly (!) and guaranteed a seat to everyone who showed up for the flight. Imagine, coffee cup in hand, business people rushing to the gate at the last minute knowing they would be in Washington D.C. soon. A full plane meant that Eastern had to use its back-up, even for just one seat.

The Eastern shuttle couldn’t exist after airline deregulation in 1978. Not only had the government given Eastern a monopoly but also it ensured its profits by coordinating fare hikes and cost increases. Labor was well-paid, passengers were coddled, and interstate routes were mandated by the federal government. Frequently almost empty, the direct nonstop flight between Peoria, Illinois and LaGuardia in NYC was ideal for me to visit my husband’s family. The downside? Passengers paid a lot more and land, labor and capital were inefficiently used.

Fast forward to 2012.

Moving along the Northeast Corridor between NY and Washington, D.C., travelers look for value and speed. Before 2001, Delta and US Air were favored. Afterwards though, with minimal security delays, Amtrak’s trains became preferable. As one person said, “It’s easier. I don’t have to take my shoes off…” and travel time equalizes between the train and the plane after airport security, wait times and delays.  Finally, we shouldn’t forget the bargain buses with fares ranging from $1 to $40 a ticket that are making the market even more interesting.

So yes, Amtrak is a formidable competitor in the Northeast Corridor. However, even with a $1.3 billion subsidy from government, Amtrak loses money. With the airlines and bus companies privately owned, should Amtrak get this boost from government? As an Economist blogger suggests, shouldn’t we be debating “the right balance of public- and private-sector involvement in these sorts of enterprises?”

Thanks to the NY Times for many of my facts in its article on the competition among planes, trains and buses.For anyone who want to engage in a funding Amtrak debate, this lengthy Freakonomics post is ideal for facts and ideas. And additional facts about Amtrak are here.

Posted by: adminEcon
Tags: , , , , , , , , ,
Comments (0) Add a Comment

Obama/Biden and Romney/Ryan Issues

Currently at $7.25, should the federal hourly minimum wage rise to $9.80?

Proposed legislation from House Democrats would increase the minimum wage in three steps, 85 cents a year for 3 years. After that, the amount would move upward with inflation.

Advocates of a higher minimum wage usually focus on the purchasing power of the working poor. Using 1968 as a benchmark, they remind us that the minimum wage then, at $1.60, could purchase 5 gallons of gasoline (34 cents a gallon) and $1.60 in 1968 is the same as $10.55 today.

Opponents are concerned about jobs. Many (but not all) economists believe that when mandated wages go up, job offers go down. They cite higher expenses for businesses and a direct hit to the teenage labor market.

Called a floor, the minimum wage on a graph is drawn as a horizontal line above the point where demand and supply naturally establish the wage. That line crosses the demand curve of available jobs at a lower quantity than the supply curve of available workers. The higher the line, the greater the gap between jobs and workers.

Where do the candidates stand? Again the lines are clearly drawn.  When campaigning in 2008, President Obama supported a $9.50 minimum wage. By contrast, Mitt Romney has said peg the minimum wage to inflation but there is no need to increase it now.

This ABC news story has a great US map showing state by state minimum wages with Washington the highest and Georgia at the bottom. You can check minimum wage history here and then compare it to today’s minimum wage in this CPI inflation calculator. A Chicago Fed paper on the spending impact of a $1 minimum wage increase is here. And finally, at 25 cents (equal to $4.07 buying power now) the first federal minimum wage was mandated in 1938 through the Fair Labor Standards Act.

Election Economics Topics:

 

 

 

Posted by: adminEcon
Tags: , , , , , , , , , ,
Comments (0) Add a Comment

Dark Moody Full Moon One Day Waning Part Covered by Dark Cloud

Astronomy might help us understand US history according to biographer Walter Isaacson. We just need to think about binary systems in which 2 separately orbiting stars “are linked because of their gravitational interaction.”

The tension between Hamilton and Jefferson was his first example. One for a national bank, the other against, one for strong central government, the other said no. In separate orbits, they influenced each other and the country.

For Jobs and Gates, Isaacson says the connection was similar. As the mind and passion behind Apple, Steve Jobs was intuitive, a romantic, a perfectionist who focused on design and usability. Meanwhile, Bill Gates led Microsoft methodically, a natural at computer coding, disciplined, practical. Again, we have 2 very different men with different views of the world who affected each other and us.

And now, Pew Research has reported their newest conclusions about our political polarity and an economic binary system again seems to have evolved.

Especially for 5 economic issues, Pew tells us that the “values gap” between Republicans and Democrats has increased. Numerically, the values gap is the percent reflecting how much Republicans and Democrats disagree. For example, asked if the government should take care of people who cannot take care of themselves, because 75% of all Democrats and 40% of all Republicans said “yes,” the values gap was  35.

This table, based on their study when it began and now, displays the average size of the values gap for multiple questions in each category.

1987 2012
Social safety net 23 41
Environment 5 39
Labor Unions 20 37
Equal opportunity 17 33
Gov’t. scope and perf. 6 33

 

With Republicans and Democrats forming a binary system, how might future legislation display the impact of their “gravitational interaction?”

The entire Pew Report is here and Walter Isaacson looks at Gates and Jobs in Steve Jobs, Chapter 16.

Posted by: adminEcon
Tags: , , , , , , , , , , , ,
Comments (0) Add a Comment