As I blogged here and here, Massachusetts has been waging a battle to tax NH tire sales to MA residents. Now, the Massachusetts Supreme Court has ruled that the state cannot collect sales taxes on sales made in New Hampshire. Read more here. Of course it would have been a shock if they ruled the other way given, you know, that little item in the U.S. Constitution called the "Commerce Clause."
August 2009 Archives
As I blogged previously, Maine has shattered the record for consecutive months of declining labor force. Between June and July, Maine's labor force shrank by 2,020 marking the sixth straight month of declining--the previous record was five months.
Additionally, the large decrease in the labor force also puts Maine very close to the record for the largest absolute decrease in labor force. That record was set during the 1991 recession when the labor force shrank by 11,280 workers. Adjusting for the larger labor force today, would mean Maine's labor force would have to shrink by around 12,500. The labor force since January 2009 has lost 11,030 workers. If we have another month of shrinkage over 2,000 as we did in July, that record will also fall.
Finally, getting to the main point of the blog (no pun intended), Maine's shadow unemployment rate climbs from 9.7 percent in June to 9.8 percent in July. The shadow unemployment rate is now 17 percent higher than the "official" rate of 8.4 percent and is now significantly above the national unemployment rate of 9.4 percent (click "continue reading" to view chart).
When looking at the underlying data, it appears there is some good news in that the number of unemployed fell by about 1,500 people. However, the number of folks employed also fell by about 500 people. Where did they all go? They dropped out of the labor force. Overall, this is a very dismal showing for Maine's economy as it is easier to turn around unemployment than it is to increase the labor supply.
Additionally, the large decrease in the labor force also puts Maine very close to the record for the largest absolute decrease in labor force. That record was set during the 1991 recession when the labor force shrank by 11,280 workers. Adjusting for the larger labor force today, would mean Maine's labor force would have to shrink by around 12,500. The labor force since January 2009 has lost 11,030 workers. If we have another month of shrinkage over 2,000 as we did in July, that record will also fall.
Finally, getting to the main point of the blog (no pun intended), Maine's shadow unemployment rate climbs from 9.7 percent in June to 9.8 percent in July. The shadow unemployment rate is now 17 percent higher than the "official" rate of 8.4 percent and is now significantly above the national unemployment rate of 9.4 percent (click "continue reading" to view chart).
When looking at the underlying data, it appears there is some good news in that the number of unemployed fell by about 1,500 people. However, the number of folks employed also fell by about 500 people. Where did they all go? They dropped out of the labor force. Overall, this is a very dismal showing for Maine's economy as it is easier to turn around unemployment than it is to increase the labor supply.
Continue reading What is Maine's Unemployment Rate? July Update.
The Dirigo Health Board is discussing changes to Maine's government plan - DirigoChoice. One of the considerations is a $100,000 a year limit on benefits.
This is a great lesson learned for proponents of government-run health care. Government health care is great...as long as you don't get sick.
DirigoChoice enrollment is down to 9,472. A far cry from the 128,000+ that were promised when Dirigo passed in 2003, as noted most recently in today's WSJ opinion piece.
A few months back, I blogged about the alarming fact that 10 of Maine's 16 counties have lost population. I recently became aware of this new data from the U.S. Census Bureau which shows population change by town. Unfortunately, the data reveals a dismal picture for Maine's towns.
Between July 1, 2007 and July 1, 2008, more than half (58 percent) of Maine's towns saw their population decline (click "continue reading" to view table)--310 out of 533 towns. Additionally, these towns represented more than half of all of Maine's population (55 percent). As such, this is not simply a reshuffling of Maine's population, but rather one of absolute population decline due to fewer births and out-migration (for more on out-migration, see here).
Between July 1, 2007 and July 1, 2008, more than half (58 percent) of Maine's towns saw their population decline (click "continue reading" to view table)--310 out of 533 towns. Additionally, these towns represented more than half of all of Maine's population (55 percent). As such, this is not simply a reshuffling of Maine's population, but rather one of absolute population decline due to fewer births and out-migration (for more on out-migration, see here).
Continue reading Majority of Maine's Towns Lose Population.
The school choice community suffered a blow today with the passing of Rose D. Friedman, wife of the late Professor Milton Friedman and co-author with him of the 1962 book "Capitalism and Freedom," and the groundbreaking "Free to Choose" book and television series of the late 1970's.
After distinguished careers notable for their important contributions in the filed of economics, the Friedmans dedicated their later life to the advancement of school choice through the establishment of the Friedman Foundation for Educational Choice. That institution now supports school choice efforts across the nation, consistent with the vision outlined by Milton Friedman in a 1955 essay titled The Role of Government in Education.
Their work has resulted in expanded educational options being made available to thousands of children nationwide, and has inspired a generation of school choice supporters, myself included.
Though records of her birth in a small Russian village have been lost, Rose Friedman was believed to be 98.
R.I.P.
After distinguished careers notable for their important contributions in the filed of economics, the Friedmans dedicated their later life to the advancement of school choice through the establishment of the Friedman Foundation for Educational Choice. That institution now supports school choice efforts across the nation, consistent with the vision outlined by Milton Friedman in a 1955 essay titled The Role of Government in Education.
Their work has resulted in expanded educational options being made available to thousands of children nationwide, and has inspired a generation of school choice supporters, myself included.
Though records of her birth in a small Russian village have been lost, Rose Friedman was believed to be 98.
R.I.P.
They come from right of center and left of center, but the Wall St. Journal and the Portland Press Herald share some common ground on issues of education reform.
In an editorial today, the Journal describes two instances, one in Baltimore and the other in New York City, in which teacher unions undertake actions that benefit union members while harming students.
"Unions exist to advance the interests of their members," says the paper. "The problem is that unions present themselves as student advocates while pushing education policies that work for their members even if they leave kids worse off."
"Until school choice puts more money and power in the hands of parents," the editorial concludes, "public education will continue to put teachers ahead of students."
Ouch.
The Press Herald strikes a similar theme in the lead editorial it published today. Reporting on the troubling data about high school dropouts, the paper finds that it "is clear that with one in five students leaving high school without out a diploma, the current set of programs in public high schools is not working well enough."
"That is why it is perplexing," the Press Herald editorializes, "in the face of this demonstrated need for more alternatives, that Maine has consistently resisted joining the rest of the country in creating a legal mechanism to provide more. That would be charter school legislation, which was again defeated this year in the Maine Legislature."
In an editorial today, the Journal describes two instances, one in Baltimore and the other in New York City, in which teacher unions undertake actions that benefit union members while harming students.
"Unions exist to advance the interests of their members," says the paper. "The problem is that unions present themselves as student advocates while pushing education policies that work for their members even if they leave kids worse off."
"Until school choice puts more money and power in the hands of parents," the editorial concludes, "public education will continue to put teachers ahead of students."
Ouch.
The Press Herald strikes a similar theme in the lead editorial it published today. Reporting on the troubling data about high school dropouts, the paper finds that it "is clear that with one in five students leaving high school without out a diploma, the current set of programs in public high schools is not working well enough."
"That is why it is perplexing," the Press Herald editorializes, "in the face of this demonstrated need for more alternatives, that Maine has consistently resisted joining the rest of the country in creating a legal mechanism to provide more. That would be charter school legislation, which was again defeated this year in the Maine Legislature."
"Charter schools have not solved the dropout problem in other states but they have been a tool that has proven to be effective" the paper concludes. "Maine should stop limiting its options to address this problem and pass a charter school law."
The key to meaningful reform of our schools, the two papers seem to be saying, lies in providing more options to students and parents, thereby breaking up a public school monopoly that too often underserves our kids.
This weekend marks the advent of Massachusetts' 25 percent increase in their sales tax to 6.25 percent from 5 percent. In addition, for the first time, the sales tax now applies to liquor purchases. The Union Leader today features a story on the economic effects of the higher taxes in Massachusetts on New Hampshire businesses.
Mainers across the state sympathize with the plight of Massachusetts cross-border shoppers as they too head for the New Hampshire border . . . . especially after January 1, 2010 when higher sales taxes due to the enactment of LD 1495 take effect.
Mainers across the state sympathize with the plight of Massachusetts cross-border shoppers as they too head for the New Hampshire border . . . . especially after January 1, 2010 when higher sales taxes due to the enactment of LD 1495 take effect.
