The "Good Old Days" Are Now and It Gets Better All the Time, Thanks to Free-Market Capitalism

The "Good Old Days" Are Now and It Gets Better All the Time, Thanks to Free-Market Capitalism: "Click to enlarge.

From the BLS report '100 Years of U.S. Consumer Spending':

1. The material well-being of families in the United States improved dramatically, as demonstrated by the change over time in the percentage of expenditures allocated for food, clothing, and housing. In 1901, the average U.S. family devoted 79.8 percent of its spending to these necessities. By 2002–03, allocations on necessities had been reduced substantially, for U.S. families to 50.1% of spending (see top chart above).

2. The continued and significant decline over the century in the share of expenditures allocated for food also reflected improved living standards. In 1901, U.S. households allotted 42.5% of their expenditures for food; by 2002–03, food’s share of spending had dropped to just 13.2%.

3. Over the 100-year period, expenditure shares for clothing steadily declined. In 1901, the average U.S. household allocated 14% of total spending for apparel. By 2002–03, spending shares for clothing had decreased to 4.2%.

4. In 2002–03, the average U.S. family could allocate about 50% ($20,333) of total expenditures for a variety of discretionary consumer goods and services, while the average family in 1901 could allocate only 20.2%, or $155, for discretionary spending (see bottom chart above).

Conclusion: Perhaps as revealing as the shift in consumer expenditure shares over the past 100 years is the wide variety of consumer items that had not been invented during the early decades of the 20th century but are commonplace today. In the 21st century, households throughout the country have purchased computers, televisions, iPods, DVD players, vacation homes, boats, planes, and recreational vehicles. They have sent their children to summer camps; contributed to retirement and pension funds; attended theatrical and musical performances and sporting events; joined health, country, and yacht clubs; and taken domestic and foreign vacation excursions. These items, which were unknown and undreamt of a century ago, are tangible proof that U.S. households today enjoy a higher standard of living.

MP: As I wrote in a previous post: Teenagers today can afford products today like cell phones with cameras, digital cameras, GPS systems, CD players, DVD players, laptop computers, and iPods that even a billionaire couldn't have purchased 2 0 years ago. As much as we might complain, just by being alive in the 21st century America, even if you're earning the minimum wage, you've already 'won first prize in the lottery of life.'

HT: Lyle Meier

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Public Option = Single Payer = Gov't. Monopoly

Public Option = Single Payer = Gov't. Monopoly: "1. Among the things that people complain about under the present medical care system are the costs, insurance company bureaucrats' denials of reimbursements for some treatments and the free loaders at hospital emergency rooms whose costs have to be paid by others. Will a government-run medical system make these things better or worse? This very basic question seldom seems to get asked, much less answered.

If the government has some magic way of reducing costs — rather than shifting them around, including shifting them to the next generation — they have certainly not revealed that secret. The actual track record of government when it comes to costs — of anything — is more alarming than reassuring.

2. Ironically, it is politicians who have already made medical insurance so expensive that many people refuse to buy it. Insurance is designed to cover risk. But politicians have mandated that insurance cover things that are not risks and that neither the buyers nor the sellers of insurance want covered.

In various states, medical insurance must cover the costs of fertility treatments, annual checkups and other things that have nothing to do with risks. What many people most want is to be insured against the risk of having their life's savings wiped out by a catastrophic illness. But you cannot get insurance just for catastrophic illnesses when politicians keep piling on mandates that drive up the cost of the insurance. These are usually state mandates but the federal government is already promising more mandates on insurance companies — which means still higher costs and higher premiums.

All this makes a farce of the notion of a 'public option' that will simply provide competition to keep private insurance companies honest. What politicians can and will do is continue to drive up the cost of private insurance until it is no longer viable. A 'public option' is simply a path toward a 'single payer' system, a euphemism for a government monopoly.

~Thomas Sowell's latest column on the 'costs' of medical care.

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Unemployment Rate Climbs

Unemployment Rate (United States) {US} OBSERVATION PERIOD: OCT (Monthly)

ACTUAL : 10.2%

PRIOR : 9.8%

REVISED : - -

SURVEY : 9.9% (Mean: 9.9%, High: 10.1%, Low: 9.8%)


Change in Nonfarm Payrolls (United States) {US} OBSERVATION PERIOD: OCT (Monthly)

ACTUAL : -190K

PRIOR : -263K

REVISED : -219K

SURVEY : -175K (Mean: -175K, High: -105K, Low: -250K)
 

Average Weekly Hours (United States) {US} OBSERVATION PERIOD: OCT (Monthly)
 
ACTUAL : 33.0
 
PRIOR : 33.0
 
REVISED : - -
 
SURVEY : 33.1 (Mean: 33.1, High: 33.1, Low: 33.0)
 
 
The unemloyment rate climed to 10.2% in October, a number not seen in over 26 years. Nonfarm payrolls dropped by 190,000, bringing the total number of jobs lost in the recession to 7.3 million. Economists estimated an unemployment rate of 10%, with 150,000 lost jobs in October. If you include discouraged workers and those forced to work part-time, the estimated rate is 17.5% unemployment.
 
Futures were down slightly after the announcement.

Quote of the Day

"By virtue of exchange, one man's prosperity is beneficial to all others." -Frederic Bastiat

Quote of the Day

"When you subsidize poverty and failure, you get more of both." -James Dale Davidson

Jobs Saved? What About the Jobs Destroyed?

Jobs Saved? What About the Jobs Destroyed?: "

Washington Post -- The White House on Friday embraced reports showing that the $159 billion in grants and loans made so far under the economic stimulus package has created or saved about 640,000 jobs, even as Republicans and government watchdogs questioned the reliability of the figures.

White House officials said the reports -- the first batch of filings by states, cities and other recipients of stimulus grants and loans -- buttressed their calculation that the full $787 billion package passed in February has saved or created 1 million jobs.

From Henry Hazlitt's 'Economics in One Lesson' (originally published in 1946), Chapter 4 'Public Works Mean Taxes:'

There is no more persistent and influential faith in the world today than the faith in government spending. Everywhere government spending is presented as a panacea for all our economic ills. An enormous literature is based on this fallacy, and, as so often happens with doctrines of this sort, it has become part of an intricate network of fallacies that mutually support each other.

A certain amount of public spending is necessary to perform essential government functions. A certain amount of public works — of streets and roads and bridges and tunnels, of armories and navy yards, of buildings to house legislatures, police and fire departments—is necessary to supply essential public services. With such public works, necessary for their own sake, and defended on that ground alone, I am not here concerned. I am here concerned with public works considered as a means of “providing employment” or of adding wealth to the community that it would not otherwise have had.

A bridge is built. If it is built to meet an insistent public demand, if it solves a traffic problem or a transportation problem otherwise insoluble, if, in short, it is even more necessary to the taxpayers collectively than the things for which they would have individually spent their money had it had not been taxed away from them, there can be no objection. But a bridge built primarily “to provide employment” is a different kind of bridge.

The bridge has to be paid for out of taxes. For every dollar that is spent on the bridge a dollar will be taken away from taxpayers. If the bridge costs $10 million the taxpayers will lose $10 million. They will have that much taken away from them which they would otherwise have spent on the things they needed most.

Therefore, for every public job created by the bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. The employment argument of the government spenders becomes vivid, and probably for most people convincing. But there are other things that we do not see, because, alas, they have never been permitted to come into existence. They are the jobs destroyed by the $10 million taken from the taxpayers. All that has happened, at best, is that there has been a diversion of jobs because of the project. More bridge builders; fewer automobile workers, television technicians, clothing workers, farmers.

Thanks to Dennis Gartman, who featured a quote from this chapter of Economics in One Lesson in today's The Gartman Letter.

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Steve: Not to mention, if one-third of the $787 billion was spent to save/create 1 million jobs, that comes out to about $259,710 per job. Sounds like inefficiency to me since probably none of those jobs paid a salary of $259,710.

Announcing Google Maps Navigation for Android 2.0

Announcing Google Maps Navigation for Android 2.0: "(Cross-posted with the Google Mobile Blog)

Since 2005, millions of people have relied on Google Maps for mobile to get directions on the go. However, there's always been one problem: Once you're behind the wheel, a list of driving directions just isn't that easy to use. It doesn't tell you when your turn is coming up. And if you miss a turn? Forget it, you're on your own.

Today we're excited to announce the next step for Google Maps for mobile: Google Maps Navigation (Beta) for Android 2.0 devices.

This new feature comes with everything you'd expect to find in a GPS navigation system, like 3D views, turn-by-turn voice guidance and automatic rerouting. But unlike most navigation systems, Google Maps Navigation was built from the ground up to take advantage of your phone's Internet connection.

Here are seven features that are possible because Google Maps Navigation is connected to the Internet:

The most recent map and business data
When you use Google Maps Navigation, your phone automatically gets the most up-to-date maps and business listings from Google Maps — you never need to buy map upgrades or update your device. And this data is continuously improving, thanks to users who report maps issues and businesses who activate their listings with Google Local Business Center.

Search in plain English
Google Maps Navigation brings the speed, power and simplicity of Google search to your car. If you don't know the address you're looking for, don't worry. Simply enter the name of a business, a landmark or just about anything into the search box, and Google will find it for you. Then press 'Navigate', and you're on your way.

Search by voice
Typing on a phone can be difficult, especially in the car, so with Google Maps Navigation, you can say your destination instead. Hold down the search button to activate voice search, then tell your phone what you want to do (like 'Navigate to Pike Place in Seattle'), and navigation will start automatically.

Traffic view
Google Maps Navigation gets live traffic data over the Internet. A traffic indicator light in the corner of the screen glows green, yellow or red, depending on the current traffic conditions along your route. If there's a jam ahead of you, you'll know. To get more details, tap the light to zoom out to an aerial view showing traffic speeds and incidents ahead. And if the traffic doesn't look good, you can choose an alternate route.

Search along route
For those times when you're already on the road and need to find a business, Google Maps Navigation searches along your route to give you results that won't take you far from your path. You can search for a specific business by name or by type, or you can turn on popular layers, such as gas stations, restaurants or parking.

Satellite view
Google Maps Navigation uses the same satellite imagery as Google Maps on the desktop to help you get to your destination. Turn on the satellite layer for a high-resolution, 3D view of your upcoming route. Besides looking cool, satellite view can help you make sense of complicated maneuvers.

Street View
If you want to know what your next turn looks like, double-tap the map to zoom into Street View, which shows the turn as you'll see it, with your route overlaid. And since locating an address can sometimes be tricky, we'll show you a picture of your destination as you approach the end of your route, so you'll know exactly what to look for.

Since there's nothing quite like seeing the product in action, we made this video to demonstrate a real-life example:



The first phone to have Google Maps Navigation and Android 2.0 is the Droid from Verizon. Google Maps Navigation is initially available in the United States. And like other Google Maps features, Navigation is free.

Visit google.com/navigation to learn more and browse a gallery of product screenshots. Take Google Maps Navigation for a spin, and bring Internet-connected GPS navigation with you in your car.

Posted by Keith Ito, Software Engineer

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Steven: Now this looks awesome. I'm sure a version for iPhone and other adroid builds are in the works.