Archive for August 2016

Mid-Week Reads: Minnesota's Economy and Colin Kaepernick

Every week, North Star will take some time out of our schedules to bring you our favorite reads from the past week. Jeff Van Wychen The Center of the American Experiment Report on Minnesota’s Economy? It’s Politics, Not Economics. Saint John’s University economist and regular MinnPost contributor Louis Johnston critiques the recent CAE report on…

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Growing Income Gap Between the Top and the Middle

Information from the biennial Minnesota Tax Incidence Study (MTIS) confirms in greater detail what was already known in a broad sense—income inequality in Minnesota is increasing over time. Using data from the thirteen published Incidence Studies, part 1 of this series documented the increased concentration of income among the five percent of households with the…

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A Closer Look at Growing Income Inequality

Increasing income inequality is not only offensive from a fairness perspective, but is also a persistent cause of lackluster economic growth. Last month, a North Star article documented the growing extent of income inequality in Minnesota. Data from the long series of Minnesota Tax Incidence Studies (MTIS) allows us to examine trends in Minnesota income…

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Higher Wages Needed to Meet Basic Needs

Many Minnesota jobs do not pay enough to meet the basic needs of a typical Minnesota family, according to data from the “Minnesota Cost of Living Study Annual Report 2016” prepared by the Minnesota Department of Employment and Economic Development (DEED). In fact, this report—which was summarized in part 1 of this series—reveals that in…

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Many Minnesota Jobs Don’t Meet Basic Needs

In parts of Minnesota, median wages are not sufficient to meet the basic needs of a typical family. Furthermore, in all regions of the state, there are likely a significant number of workers with wages that are not adequate to meet basic needs. These conclusions are based on information from the “Minnesota Cost of Living…

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What Happens Without a Special Session?

Legislative leaders and Governor Dayton continue to negotiate over the possibility of a special legislative session. The absence of a special session means no 2016 tax bill (and no bonding/transportation finance package), which in turn would mean more money left on the bottom line in the forthcoming November forecast. And more money on the bottom…

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Conservative Think Tank's Report Misses the Mark

The Center of the American Experiment (CAE) released a new report today, bemoaning Minnesota’s “mediocre” economic performance since 2000. Some of the trends noted in the report are legitimate, while others are not. However, the insinuation that “Minnesota’s blue-state policies” are “responsible for its economic underperformance” is bogus and unsupported by information in the report…

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Doctor Frankenstein, Meet Your Monster

Several weeks ago, the right wing Center of the American Experiment (CAE) observed that Minnesota’s economic performance over the course of the 21st century has been “mediocre” and touted a forthcoming report that would stimulate debate over “the extent to which Minnesota’s blue-state policies are eroding the state’s historic economic strength.” Our five-part series, which…

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Mid-Week Reads: Economics and Early Ed

Every week, North Star will take some time out of our schedules to bring you our favorite reads from the past week. Jeff Van Wychen The Third Way: Share-the-Gains Capitalism Economist and for U.S. Labor Secretary Robert Reich outlines three economic systems in America: (1) “no-lose socialism” for the uber-rich, in which they get lavish…

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Minnesota Receives Highest Possible Bond Rating

Minnesota received good fiscal and economic news recently, as the Fitch rating agency improved the state’s bond rating from AA+ to AAA—the highest rating possible. The improved rating will translate into reduced borrowing costs for Minnesota state and local governments and is further indication that Minnesota’s economy is doing well, contrary to conservative claims. Fitch…

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