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So, if oil remains at $80 (or goes even lower), North Sea production may continue to slide as it has in recent years as the increased investment will be curtailed.
This flood of money, arriving from China despite strict currency controls, has helped the city build a $20 million high school performing arts center and the local Mercedes dealership expand. "Thank God for them coming over here," says Peggy Fong Chen, a broker in Arcadia for many years. "They saved our recession." The new residents are from China's rising millionaire class-entrepreneurs who've made fortunes building railroads in Tibet, converting bio-energy in Beijing, and developing real estate in Chongqing. One co-owner of a $6.5 million house is a 19-year-old college student, the daughter of the chief executive of a company the state controls.
CDC Updates Ebola Protocol as Anxiety Rises (NBC News)
Islamic State foiled in attempt to kidnap Syrian rebel leader in Turkey Attempted kidnap of top Syrian rebel commander inside Turkey suggests the Islamic State is operating inside this Nato country with relative impunity (The Telegraph)
U.S. Humanitarian Aid Going to ISIS (The Daily Beast) Hat tip to Sig Silber.
Ukraine steels itself for winter as Novorossiya forges ahead (The Conversation)
Pro-Russian rebels using seized Ukrainian missile downed MH17 passenger plane, says Germany (The Sydney Morning Herald)
Russiaís borders: Romania strengthens ties with NATO as old anxieties return (The Conversation)
Hong Kong protest clashes leave 20 injured (Al Jazeera)
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The ten least dependent states are (starting with the least dependent): Delaware, Illinois, Minnesota, New Jersey, Connecticut, Kansas, California, Nevada, Massachusetts and Colorado. The "Live Free or Die" state, New Hampshire doesn't make the top ten for independence - it is 11th.
Pass your cursor over the map to view data for each state.
The scatter plot for tax rates vs. dependency on the Federal government shows two trend lines (not drawn in the first graph below): For states that fall in the low tax and low dependency plus those in the high tax and high dependency category the trend line is positively sloped from lower left to upper right. Of course this is what it is, by definition! All the other states have a negatively sloping trend line from upper left to lower right. Again that characteristic is forced by the data segregation when there is no correlation for the entire 51 point data set: If you divide a randomly scattered data set into four quadrants you force two subsets of data with opposite sloping trend lines.
Below we have reproduced the graph above with the two trend lines discussed and with lines showing a four quadrant definition. The questions that should be studied are:
The final graph below shows one variable that should have a bearing on the questions asked above. Here we see a clear correlation between higher state GDP and lower state dependency. This is at least part of the explanation for the random scatter in the first graph (taxes vs. dependency): The two variables (state taxes and dependencies) do not have primary relationships, while the last graph shows that lower GDP correlates with higher dependency. Who would have guessed - more productivity is correlated with greater independence.
Note that the gray states, although they can be included in the total distribute without disturbing the slope of the trend line much, would significantly detract from the correlation coefficient (if calculated) that would be obtained for the red-green states only. That is because the gray states still describe an oppositely sloped trend line of their own. That means for some states (gray states) higher GDP correlates with greater dependency. This is a demonstration of a common problem in economics (the ceteris paribus problem): There is much more going on in this system than just taxes and GDP defining the level of economic independence for a state.
Yet this type of observation is often attempted as a defining economic relationship. It clearly is not and a lot more work needs to be done to characterize (all) the other variables involved in defining state - federal interdependencies.
Earlier this year Sig Silber had an interesting discussion about the economic difficulties that the state of New Mexico would have if it were to secede from the U.S. and become The Nation of New Mexico.
10 Most Corrupt Countries in the World (Rant Political)
Why The Stock Market May Have Found A Bottom And What To Buy Now (Seeking Alpha) Hat tip to Trang Ho.
Hereís What the Secret Goldman Sachs Tapes Really Mean (Wall Street Insights & Indictments)
Buddhist economics (ekantipur.com)
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