Lesson in Productivity...More food with fewer workers...Should we be OUTRAGED that employment in agriculture has declined so much??

Productivity (Output per worker) down on the farm is amazing.  The first graph shows the yield per acre of various agricultural commodities relative to the growth of the US population.  Food production per capita has increased dramatically post-Depression Era. 

Source: Coyote Blog

This second graph shows productivity in agriculture has been achieved with fewer workers. Notice in both graphs 1930 to 1940 was a seminal year---a dramtic divergence in the production of food and the number of workers needed to produce that food.

Source: NASS

Why is this?...

Source: HERE: ""The use of technology in modern agriculture began with the replacement of the horse with modern tractors, combines, and cotton pickers after the turn of the 20th

century. The nextrevolution in crop production began in the 1930s with “hybridization” of crops, or the breeding of

select crops to produce desirable characteristics not typically found in the original crop. As a

result, crop yields have increased from 25 bushels per acre in 1930 to more than 140 bushels

today. During the 1940s came increased availability of fertilizers to further increase crop yields,

and in the 1950s we saw the introduction of herbicides, insecticides, and fungicides to help

control weeds, insects and diseases that can reduce crop growth. In the mid 1990s, the

introduction of food biotechnology helped to increase the quantity and quality of the foods we

grow by making them tolerant of pesticides and preserving nutrients and other desirable traits. As

with other industries, farmers have had much to gain from the availability of computers, software,

satellites, and the Internet. Such technologies enable farmers to practice what is often referred to

as “precision agriculture,” which gives them the ability to more effectively use crop inputs such

as fertilizers, pesticides, tilled or cultivated land, and irrigation water. More effective use of these

inputs means greater crop yield and/or quality, without polluting the environment. Additionally,

since 1930, the time necessary to produce a bushel of corn has decreased from more than 30

minutes to a fraction of a minute in 2002."""


Nice chart showing the difference in gasoline prices between the US and Europe...Why the big difference???

Here is a chart showing the differences in the price of gasoline between the US and Europe at-large.  Why is there such a large disparity between the two continents?

Source: Business Insider

Much of the difference comes from the level of taxation on gasoline. Here are a few examples of countries shown above and the dollar amount in taxes levied on a gallon of gasoline.

Belgium $4.26

France $4.12

Germany $4.37

Italy $3.95

Japan $2.81

Netherlands $4.79

United Kingdom $4.47

United States $.39 

"So, how did you make your millions? I invented the "OBOL". REALLY? YOU are THAT guy!!"

The above is a conversation I WISH I was able to have. How many times have you had a great idea?  What is the difference between me and the inventor of the Obol?  Follow-through....

From Brookstone:

Hate soggy cereal? Problem solved! Obol® has two sections--an upper area for your cereal, and a lower reservoir for milk. Scoop a spoonful of your cereal into your spoon, then swoop into the milk for the perfect bite every time. Obol® is also great for milk and cookies, soup and crackers, even chips and salsa. Its uses are as unlimited as your imagination!

Obol's unique Swoop n Scoop® design lets you enjoy cereal or anything crispy until the last bite.
And with its easy-to-hold, textured non-slip grip and rim, you can eat wherever you like--in bed or while watching a movie. Kids love Obol®! And moms will, too. It's made in the USA from BPA-free, unbreakable polypropylene--and it's dishwasher-safe.

Enjoy bite after crispy bite with Obol, the Never Soggy Cereal Bowl. Order from Brookstone today!

Source HERE via KPC

New energy pipeline and the thousands of jobs private sector jobs it would create has been shelved for environmental reasons. Look at this map and tell me if this action is justified...

Below is a map of existing oil,natural gas, and gasoline pipelines that criss-cross the US. The building of a new pipeline, called the KeystoneXL, has been shelved by the Administration on evironmental grounds.  This pipeline would provide 1,000's (10's of thougsands??) private sector jobs relatively quickly and meet some/alot of your domestic energy needs more efficiently...Not going to happen, though. I did not realize we already had such an extensive network of pipelines already. 

This from Carpe Diem: ""In a temporary victory for environmentalists, the Obama administration has delayed its decision on whether to approve the controversial Keystone XL oil pipeline until after the 2012 election. Environmentalists claim that the Keystone XL pipeline's route across the Midwest "would endanger sensitive lands and drinking water supplies."

With all of the environmentalism alarmism about the proposed Keystone XL oil pipeline, it might be a good time to point out that: a) the United States already has a huge network of existing pipelines for oil, natural gas and gasoline illustrated in the map above, b) pipelines have been used successfully and safely in the U.S. for more than 100 years, and c) pipelines are an integral part of our domestic energy system. In other words, we live safely with energy pipelines every day and the Keystone XL pipeline would simply become one new part of an existing and extensive pipeline network that makes a significant contribution to America's dependable and affordable energy. ""

Source: HERE via Carpe Diem

Be prepared to pay a new Federal Tax on Christmas trees. The money will be used to promote the Christmas Tree Industry. This is NOT an Onion story...

Obama Couldn’t Wait: His New Christmas Tree Tax

""President Obama’s Agriculture Department today announced that it will impose a new 15-cent charge on all fresh Christmas trees—the Christmas Tree Tax—to support a new Federal program to improve the image and marketing of Christmas trees.

In the Federal Register of November 8, 2011, Acting Administrator of Agricultural Marketing David R. Shipman announced that the Secretary of Agriculture will appoint a Christmas Tree Promotion Board. The purpose of the Board is to run a “program of promotion, research, evaluation, and information designed to strengthen the Christmas tree industry’s position in the marketplace; maintain and expend existing markets for Christmas trees; and to carry out programs, plans, and projects designed to provide maximum benefits to the Christmas tree industry” (7 CFR 1214.46(n)). And the program of “information” is to include efforts to “enhance the image of Christmas trees and the Christmas tree industry in the United States” (7 CFR 1214.10).""

Teachers: Something to reinforce what you tell students EVERYDAY. Students: PLEASE read this and don't take it for granted. You WILL hurt yourself if you don't!

Teachers: Something to share with your students.

Students: BEING ON TIME IS IMPORTANT!  However, this is something you will have to learn on your own.  I have seen people who make $50,000 per year lose their jobs because they cannot get to work on time...Sad...

Small Business: A Good Worker Is Hard to Find

""Much has been made of the failure of the U.S. educational system to produce highly skilled science and engineering professionals. But it isn’t only technical expertise in demand. Finding people who get to work on time seems to be difficult.

In August, the Federal Reserve Bank of New York asked regional manufacturers about finding good workers. The second biggest challenge — after computer skills — was hiring workers who were punctual and reliable.""

Follow up to my College major/earning power posting--See these visuals on Unemployment Rates and Salary potential for a wide variety of majors...Good stuff...

As a follow up to my previous post on college majors, here are some screen shots from the Wall Street Journal that show a pretty comprehensive list of majors, there approx unemployment rates and rough estimates of earning power in the market place.  This might encourage or discourage you. I just provide the info...

From College Major to Career

Choosing the right college major can make a big difference in students' career prospects, in terms of employment and pay. Here’s a look at how various college majors fare in the job market, based on 2010 Census data.

My short commentary on a graph that all students in college (or going to go) should see and think about...

Below is a selective grouping of college majors to illustrate the point that since 1985 there has been a rapid increase in the number of students getting degrees in majors, that, well, for the lack of a better term---don't have much earning power in the marketplace.  (Go HERE for the original source for this and a more extensive discussion)

The number of students that get degrees in majors that DO have earning power in todays marketplace has not changed much at all (Note that this number does NOT included foreign students receiving a degree from a US college--that number is relatively large!).

Students that spend/borrow LOTS of money to get a degree with limited earning power  need to understand this from the get go.  I am not saying this because I dont think these majors are important. That would not be true.  You need to do what is best for you. However, to not consider your earning potential, especially when you have to pay for it yourself, is not being responsible to your "future self" that has to live with a loan debt to pay back..

Source: Marginal Revolution

And The Survey Says: Chili's is going to do me wrong!

I completed an online survey after visiting my local Chilis. It says I am eligible to win a cash prize. Notice the amounts under "Eligible Prize(s)".   It quotes the prize in US Dollars, Canadian Dollars, British Pounds and Euros. I wonder if I have a choice of currency to receive my prize?

Here are the currency conversions at the latest exchange rates:

$1,000US = $1,000US
$1,000 Canadian Dollars = $982.28
1,000 British Pounds = $1,601.91
1,000 Euros = $1,377.82

Long Live The Queen!!  British Pounds, please...

New and improved US Debt charts with China---always stunning to see how it has changed in just 10 years...

Don't know why I like debt graphs/charts as they relate to China.  I suppose it is because of the shocking rise of it such a short period of time. 

The first one (smaller one with yellow bars) shows the dollar amount of US Treasury's owned by China ( I assume by the Govt and/or its citizens). The second part of the graph shows the total US PUBLIC debt of $10 Trillion. This excludes the portion of the total National Debt (approx $5 Trillion) that is called PRIVATE debt. This is the debt incurred by the Federal Govt as it borrows from various Trust Funds, such as Social Security, that the Federal Govt administers. In other words, money the Federal Govt borrows from itself (that is another story for another day).

Source: Christian Science Monitor

The next chart shows in the same time period, China's change in direct investment outside of its borders (the US and elsewhere). This could include other financial investments stocks, commodities, bonds (how much of YOUR house or student loans or car is owed to them??) or investments in physical properties (businesses, land, natural resources, etc).

Source: Christian Science Monitor

You might be asking yourself: "Where do they get all this money since 2001 to loan us or to invest?"

This chart shows the difference between what we EXPORT (BLUE line) and what we IMPORT (RED line) from China.  You can easily see US Net Exports ($$$ Exports minus $$$ Imports) is negative. We import much more from China than we export to them.

The net flow of dollars on merchandise and services between our two countries is we send many more dollars to China than they return back to the US to buy our merchandise and services.  What do they do with all those surplus dollars? Go back to the beginning of this posting and start again---it is a continous loop. Those dollars we send them don't just disappear. A good number of them come back to the US to buy our debt instead of our merchandise. Crazy system, ain't it??? :)

Early map of the way the Electoral College vote may go...Like it or not, this is how we elect a President...

USA Today has nice interactive graphic displaying some key variables that are in play for the next Presidential election.  I know it is early in the process, but I wanted to remind you of the impact the Electoral College has in selecting the President. 

The chart below shows the safe states for each partys candidates and the ones, that while not in their pockets, trend toward one party over the other.  The ones shaded gray are "swing-states". They are toss ups.  Like it or not, these states, especially the big one Florida, are likely to determine the winner.  Candidates will spend the majority of their time and money in these states.

The positive thing to come out of this is if you live in a safe state for the candidate---you won't be subjected to constant and inane political advertising on TV. 

GDP vs EMPLOYMENT...This is THE graph people FOR and AGAINST the OWS protesters need to see and think about...

In AP Macroeconomics we teach students there is a direct relationship between changes in Real GDP and Employment (or an inverse relationship between Real GDP and UN-employment). 

In the graph below this relationship holds nicely, whether Real GDP (Blue Line) is increasing or decreasing. Employment (RED Line) follows, albeit to different degrees but the relationship is relatively tight.  It makes sense: If in real terms, more goods and/or services are produced, more people will be hired. If fewer goods and/or services are produced, fewer people are needed.

Source: Carpe Diem

However, in the first/second quarter of 2009 this relationship breaks down. While Real GDP bottoms out, employment continues a free fall.  As Real GDP recovers and increases, employment STILL falls before leveling out.  We have a large GDP to employment deficit. 

Starting in the first quarter of 2010 notice the change in the slope of the Real GDP line relative to the slope of the employment line. The former becomes steeper and the latter relatively less steep.  Very different from previous years.  Real GDP is now at its pre-recession level BUT employment is at approx. 6.6 million FEWER workers. What a difference two years makes!

If, on a macro-level, businesses are producing and selling the same dollar amount of goods and/or services as they did before the recession and doing it with many fewer workers, it is relatively easy to see why corporate profits are at record levels. 

Can we chalk this up to "corporate greed"? Were these 6 million workers not really needed in the first place? Has technology and/or efficiencies/improved processes rendered many workers unnecessary? Are businesses working the remaining workers to death to wring as much profit out of them as possible? 

Corporate greed is not a new thing.  If this was the case, why did it not happen to this extent before?  Did corporations just recently figure out how to do more with less?  Below I extended the timeline of the above graph back to 1950.  The last time we had a significant separation between these Real GDP and Employment was back in the 1950's.  Why did the gap close for so many years/decades then reappear?  Are the two periods comparable in any way? Is there no connection?  Am I completely off the mark and comparing apples and oranges?   I honestly don't know and would love to hear any suggestions....

Nice graphic showing US Military bases around the world...The reach is far and wide. How much is this costing us???

Go HERE for the original source and prehaps a more clear image..

Source: HERE

How many $100 bills does it take to finance the Federal Budget this year? See it neatly stacked in this graphic here...

This graphic represents the spending side of the Federal Budget in 2011.  What you see here are stacked pallets of $100 bills. Not $1.00 bills but $100 bills...The stack on the left represents the amount of money we actually have from tax revunes. The stack on the right represents the amount we have to borrow THIS year to fully fund the budget.  Go HERE to see more of this particular graphic..