Question of the Week–Why is Delaware’s Economy Stalled?

The unemployment rate in Delaware has remained frozen at a level higher than when our ruling Democratic party took sole control of the state government. Even more disturbing, Delaware is losing ground against the nation (now predominately led by Republican Governors). Delaware no longer enjoys a rate lower than the nation. Of course the official rates are an understatement; the real national unemployment rate is 8.8% (U-5) and the underemployment rate or U-6 which is the broadest measure of unemployment is 14%. Delaware does not fare well by that measure either at 14.1%. In fact Delaware and Connecticut are the only two states that did not see an improvement in any of the 6 measures of unemployment year over year from July 1, 2012 to June 30, 2013. The average weekly wage downstate is only 75% of the national average.
A Year of Stagnation
A Year of Stagnation
It is not that we do not have bright and energetic leadership at the top. Our governor is working hard to bring jobs to Delaware. I witnessed some of their efforts personally. The problem is that the progressive agenda undermines the pro- business side. Small business is left out of many of the equations. Utility rates are being driven skyward by environmental mandates that are at best useless. State land use and roadway entrance rules are strangling projects that want to come here in the crib. The state’s favorable corporate environment is not so favorable any longer. Education reforms have produced more dropouts than improved students. Social policy mandates discourage all but the “progressive” businesses. We take one step forward and two backward. We need a new approach to business and jobs in Delaware. We cannot claim to be pro-jobs and implement anti-business policies. We cannot claim to pro-education and eliminate innovation and parental choice by attacking charters and imposing one size fits all solutions on both the district and charter schools. We cannot claim to be creating a 21st century workforce while pushing people into dropping out of school and denying them the ability to develop their talents instead of pretending every student should learn calculus or trigonometry and foreign languages. We cannot expect to have a safe and strong society while undermining the family. Rising crime scares away investment. Weak family and societal structure equals rising poverty and crime. We cannot ration electricity with a crazy mandates for 25% renewable energy and expect to remain competitive. We cannot expect to move forward if we do not put the car in gear. *U-6 Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force is July 2013 14.0% according to the Bureau of Labor Statistics. See BLS note for an explanation of U-6. NOTE: Persons marginally attached to the labor force are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not currently looking for work. Persons employed part time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule. Updated population controls are introduced annually with the release of January data.

3 thoughts on “Question of the Week–Why is Delaware’s Economy Stalled?”

  1. The unemployment rate in Delaware has remained frozen at a level higher than when our ruling Democratic party took sole control of the state government.

    So it would seem that trying to get Delawareans incorporated into creating $100,000 cars for Justin Bieber or the rich European market didn’t work out?

    Imagine that.

    It turns out that when peddling a flaming paperweight (recall “Total Karma Recall: Fisker Pulls All Cars Due To Fire Risk”, “As Another Fisker Karma Spontaneously Combusts, “Green” Dreams Go Up In Smoke” and of course “Fisker Karma Is First Car To Burn Underwater”), even if it is a very pretty and streamline paperweight, not even $529 million (or perhaps due to) in government subsidies can lead to a Hollywood ending and everlasing prosperity. As the WSJ reports, “The founder and executive chairman of electric-car start up Fisker Automotive Inc. said he resigned Wednesday because of “disagreements” over business strategy with the ailing company’s management.” The founder, “said in an email sent to a small number of journalists that has “left the company.” Reached by phone, Mr. Fisker confirmed that he sent the email and that he had resigned.”
    Fisker Automotive is the maker of the Karma, a battery-powered luxury sports that sells for about $100,000. It received backing from the U.S. government but ran into technical and financial troubles stemming from both the Karma and a second model that was supposed to be built at a former General Motors Co. plant in Delaware.
    In recent weeks, Fisker management has been looking into selling the company, weighing bids including a $350 million offer from China’s Dongfeng Motor Corp. Founder Of Federally-Subsidized Electric Car Fisker Calls It Quits

    Meanwhile, you can still see the Bakken fields from space… as cleaner burning natural gas is being burnt anyway, don’t these Democrats have any sense of reality left? The coal* or whatever else Democrats try to shut down will ultimately be burnt anyway too, it’s just that it’ll probably be shipped out of the country on huge tankers creating more pollution or “climate change” than all the cars driven on the roads in Delaware.

    *E.g.

    Peabody Energy, which hopes to ship coal to Asia from the terminal near Bellingham, expressed confidence in the market. Peabody spokeswoman Beth Sutton said the Asian coal demand will rise with accelerating industrialization and urbanization.
    “We see imports from China and India growing by more than 50 percent over the next five years, representing some of the fastest growing imports in the world,” Sutton said in response to questions. “China’s coal imports are expected to rise more than 10 percent this year, and India has now surpassed Japan as the second largest thermal coal importer.”
    She said the question is who would benefit from the demand – the United States or other countries such as Indonesia.
    SSA Marine, the company that seeks to build the Gateway Pacific terminal near Bellingham, said the U.S. coal exports would not just go to China. SSA senior vice president Bob Watters cited a forecast from energy consulting firm Wood Mackenzie of a rising demand throughout Asia. Google

    Note the shipping cost, Google: “How 16 ships create as much pollution as all the cars in the world” (I would include links but it sets off the spam filter.)

    Be interesting to price the overall cost of the abject stupidity typical to “the base” of the Democratic environmental movement in petrodollars. Like Republicans on national security, their supposed area of expertise, they’re probably actually doing more harm than good. In any event, as long as Justin Bieber or some Delawarean Democrat gets to feel like they’re saving the world or preventing imaginary catastrophes in the future by driving a different car… apparently that’s all that matters. Priceless. If people really wanted to save the earth, then they would use fossil fuels here as a stepping stone instead of shipping them around the world and work to do away with the banker’s petrodollar and their Imperial Police Force Inc. (Democrats aren’t really doing any of that. It’s generally just more entertainment.) Or perhaps try to grow hemp and build a car fueled with hemp oil like Ford did. Do something… real, not entertaining. Etc. Because the Imperial Police Force Inc. isn’t running on solar powered ponies pooping rainbows of peace and tolerance on the world. And as the alignment (Israel, Qataris, Saudis, European) and collision of interests (Russia, China) in Syria/Iran is showing, American oligarchs increasingly want and need to use “their” military industrial complex… no matter the cost or the risk. Notice how they have little use for any environmental impact studies on anything unless they’re directed toward controlling and profiting off of their peasants. If only there was an endangered tufted tit mouse in Syria to save, huh? Democrats: “No bombing, a tufted tit might be hit!” Etc. Not that it would matter, given that our oligarchs don’t even really listen to us anymore.

    Basically, where we’re headed… a Delawarean liberal driving around in a Prius with rainbow stickers on it thinking that they’ve incorporated themselves into saving the world…. while bombs priced in petrodollars are going off in the background and tankers are headed across half dead oceans policed by Team America. And there may even ultimately be Boston Bombing “blow back” incoming to Delawareans due to Red Team neocons basically working with terrists to try to police and balance the world for the sake of petrodollars… possible “blow back” on we the people that tried to incorporate our state into making $100,000 cars for Justin Bieber instead of trying to do something for real. More entertainment.

    All the way around: Real. Dumb.

    (What’s the environmental impact of a Tomahawk missile priced in petrodollars, anyway? And where are some people playing pretend about being Native Americans to protest the use of their language and heritage to name a missile? Someone should inform Elizabeth Warren…)

  2. Worth noting the price in petrodollars for some of this stuff:

    Looks like the $100,000 or so Leo and Bieber plunked down for their Fisker Karma extended-range plug-in vehicles may have been a bargain. The California-based automaker, which appears to be headed for bankruptcy, spent an estimated $660,000 for every one of fewer than 2,500 vehicles it made during its short production history, research firm PrivCo says in a new study. That doesn’t mean each Karma actually cost $660,000 to make, just that all the money spent by Fisker, divided by the number of cars produced, result in that number.
    PrivCo has put together a detailed timeline of Fisker’s money gains and losses, and you can see the gory details here. PrivCo CEO Sam Hamadeh, in an April 17 statement, called Fisker “the largest venture capital-backed debacle in U.S. history.” In addition to the $193 million the company drew down from its $529 million credit line with the government, the company raised about $1.2 billion.
    The company recently furloughed its US workers and has brought on an advisor for a potential bankruptcy. Each Karma ‘cost’ Fisker $660,000 to produce

    Karma… did they have to name it that?

  3. Other possibilities: Hemp powered, hemp made

    And even if that scenario wasn’t workable, there are still other solutions like investing in natural gas distribution systems for cars and so forth.

    Democrats = waste of wealth and the destruction of wealth creation, they’ve demonstrated that they can find an imaginary reason to abort the creation of wealth even when that reason doesn’t exist in reality.

    Republicans = destruction of wealth in war and war profiteering…. and they’ve demonstrated that they can find an imaginary reason to destroy the creation of wealth even when there’s little to no justification for it in reality.

    But now they’re basically the same party, the party of death and destruction. Both have their wedge issues but it doesn’t really matter if you save infants only to send them out as infantry later. It doesn’t really matter if you support LGBT issues if you’re only going to destroy with your corruption and abject stupidity the very wealth that tends to create tolerance for LGBT. (Note the Golden Dawn in Greece.)

    And so forth. Their little wedge issues and “war on women” or whatever else aside… if current trajectories continue, Republicans and Democrats will probably both be the death of us. Democrats are a long way from “I killed the bank.” Andrew Jackson now just as Republicans are a long way from Mr. Greenback, Lincoln.

    Perhaps if you’re not assassinated or there isn’t an assassination attempt, then you’re probably not doing much. If so, then at least we know that Obama, Boehner… and almost all members of Congress are generally pretty safe these days.

    The bankers understood the threat a government-issued currency represented to their wealth and power. The London Times wrote of Lincoln’s move…
    “If that mischievous financial policy, which had its origin in the North American Republic, should become indurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without a debt. It will have all the money necessary to carry on its commerce. It will become prosperous beyond precedent in the history of the civilized governments of the world. The brains and the wealth of all coun­tries will go to North America. That govern­ment must be destroyed, or it will destroy every monarchy on the globe.”
    Following this editorial, the governments of Europe, as much under the control of the banks as the present US Government, offered to support the Confederacy, but had to quit when Lincoln issued the Emancipation Proclamation, as their own people refused to support the side in the war that favored slavery.
    After the Union won the civil war and it was obvious that Lincoln would keep his greenbacks in circulation, he was assassinated. Google

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