China poised to pass US as world’s leading economic power this year
By Chris Giles, Economics Editor
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The US is on the brink of losing its status as the world’s largest economy, and is likely to slip behind China this year, sooner than widely anticipated, according to the world’s leading statistical agencies.
The US has been the global leader since overtaking the UK in 1872. Most economists previously thought China would pull ahead in 2019.
Agreement between American Dream developers and North Jersey labor unions announced
APRIL 28, 2014, 8:10 AM LAST UPDATED: MONDAY, APRIL 28, 2014, 10:55 PM BY JOHN BRENNAN STAFF WRITER THE RECORD
More than three years after Governor Christie came to the Meadowlands Sports Complex to trumpet a new vision for the stalled McGreevey Xanadu shopping and entertainment project, he returned on Monday to unveil revised plans with officials from Triple Five, the new developer of the revamped project now dubbed American Dream Meadowlands.
The latest announcement came with plenty of new details, including a revised opening date target of fall 2016; the unveiling of a planned 20-story “drop ride” billed as the world’s tallest; and renderings of the proposed 639,000-square-foot indoor amusement park and water park that will feature 80-foot-high glass walls that allow drivers on nearby highways to see in — and park revelers to see out.
Joining Christie were countless construction workers, including more than 100 who stood behind the governor as he promised to make sure that Triple Five will prioritize “getting that ugly outside [color scheme] the hell off the building.”
The features
Key components of American Dream Meadowlands, according to the project developer’s website and previous announcements this year:
More than 400 retailers, restaurants, and services, including “global retail |influenced by high streets from Bond Street to La Rambla to Soho” 639,000-square-foot indoor amusement park and water park complex Indoor ski and snowboard park |12 stories high and 800 feet long Observation wheel similar to the |London Eye 200-foot “drop ride” similar to |bungee jumping Performing arts center that seats 2,400 to 3,000 National Hockey League-sized |ice rink 180,000-square-foot movie complex with more than 5,000 seats |(700 of them VIP) Aquarium featuring more than 10,000 “sea creatures” 18-hole miniature golf course
The event provided Christie with an opportunity to come through on a pledge he made to construction workers when they endorsed his reelection last year: to put them back on the job. The Republican governor secured the support of many unions, including Laborers International Union of North America, which had backed Democratic Gov. Jon Corzine four years earlier. The unions cited Christie’s vocal support of American Dream and other developments as well as his signing of the New Jersey Economic Opportunity Act, which offers corporate tax breaks to companies that create and retain jobs in the state. Many Laborers’ Union workers were noticeable in the audience, clad in orange T-shirts.
– See more at: https://www.northjersey.com/news/agreement-between-american-dream-developers-and-north-jersey-labor-unions-announced-1.1004344#sthash.NBJJ48lc.dpuf
Men Who Work Full-Time Earn Less Than 40 Years Ago
April 28, 2014 – 12:48 PM By Terence P. Jeffrey
(CNSNews.com) – The real median income of American men who work full-time, year-round peaked forty years ago in 1973, according todata published by the U.S. Census Bureau.
In 1973, median earnings for men who worked full-time, year-round were $51,670 in inflation-adjusted 2012 dollars. The median earnings of men who work full-time year-round have never been that high again.
Experts warn of a growing fragility as coal-fired plants are shut down, nuclear power is reduced and consumers switch to renewable energy.
By Ralph Vartabedian
April 25, 2014, 8:47 p.m.
As temperatures plunged to 16 below zero in Chicago in early January and set record lows across the eastern U.S., electrical system managers implored the public to turn off stoves, dryers and even lights or risk blackouts.
A fifth of all power-generating capacity in a grid serving 60 million people went suddenly offline, as coal piles froze, sensitive electrical equipment went haywire and utility operators had trouble finding enough natural gas to keep power plants running. The wholesale price of electricity skyrocketed to nearly $2 per kilowatt hour, more than 40 times the normal rate. The price hikes cascaded quickly down to consumers. Robert Thompson, who lives in the suburbs of Allentown, Pa., got a $1,250 bill for January.
“I thought, how am I going to pay this?” he recalled. “This was going to put us in the poorhouse.”
The bill was reduced to about $750 after Thompson complained, but Susan Martucci, a part-time administrative assistant in Allentown, got no relief on her $654 charge. “It was ridiculous,” she said.
Number of Children Living in Poverty Climbs Sharply in NJ, Rising in all but 3 Counties
The number of children living in poverty continues to rise in New Jersey, as measured by the newest edition of the Kids Count report for the state, which is being released today by Advocates for Children of New Jersey.
Almost one-third of all New Jersey children — 646,000 — were considered low-income, which is defined as living in a family with an income at twice the federal poverty limit, in 2012, the latest New Jersey Kids Count shows.
That’s a big increase from 2008, when some 310,000 children, or 15 percent of all New Jersey children, were living at the poverty level, with almost half of those considered very poor, in families with incomes of less than half the poverty limit. That year, the poverty level for a family of four was $23,050.
“While the rankings shift every year, we see certain trends across many counties, including increasing child poverty, fewer child care options for working parents and high housing costs,” said Cecilia Zalkind, ACNJ’s executive director. “These statistics should be used to inform local, county and state leaders, as well as community organizations, in their efforts to improve the well-being of all New Jersey children.”
The report shows that child poverty continued to rise from 2008 to 2012 in all but three counties — Morris, Salem and Warren. Warren and Salem saw substantial declines, at 46 and 22 percent, respectively, while Morris had a modest 1-percent decrease. In the other counties, increases in the number of children living in families earning too little to meet their children’s needs ranged from a low of 8 percent in Monmouth County to a high of 246 percent in Somerset County.
Statewide, the number of children living in poverty jumped 22 percent during this time. (O’Dea/NJSpotlight)
Keystone XL’s continued delay is absurd By Editorial Board, Published: April 23
IF FOOT-DRAGGING were a competitive sport, President Obama and his administration would be world champions for their performance in delaying the approval of the Keystone XL pipeline.
Last Friday afternoon, the time when officials make announcements they hope no one will notice, the State Department declared that it is putting off a decision on Keystone XL indefinitely — or at least, it seems, well past November’s midterm elections. This time, the excuse is litigation in Nebraska over the proposed route, because that might lead to a change in the project that various federal agencies will want to consider. The State Department might even decide to substantially restart the environmental review process . This is yet another laughable reason to delay a project that the federal government has been scrutinizing for more than five years.
At this point, there is little doubt about the big picture. After two thorough environmental analyses, State Department experts determined that the pipeline’s impact probably would be minimal, even on climate change-inducing carbon dioxide emissions. The economic rewards of extracting Canadian oil are too attractive and the options for getting it out of the countryare too numerous. We would rather see Canadian crude traveling a well-built, well-regulated pipeline in the United States than on the rail cars, barges and ocean tankers that will move it until cheaper options inevitably come online.
That does not mean we like burning dirty oil sands crude. But symbolic gestures will have no impact on climate change. Governments should steadily reduce global carbon dioxide emissions with smart, economy-wide policies such as carbon taxes, which meaningfully and permanently cut demand for carbon-heavy fuels. Alberta’s provincial government, which oversees much of Canada’s oil development, is considering enhancements to its fairly weak carbon price system, which could redress some of the excess emissions associated with pulling the viscous oil out of the ground.
If activists want to make a real difference on carbon dioxide emissions, they should devote their energies to establishing an ambitious carbon price across Canada and in the United States — or, if that’s not achievable, any number of second-best but serious policy options. In a comprehensive and efficient system, it might well make economic sense to burn some Canadian crude for quite a while as the world slowly transitions away.
As for the pipeline’s routing, planners and regulators have already considered all sorts of options through Nebraska, and they already shifted the route once. Neither route posed environmental concerns of a sort that would justify concluding that Keystone XL is outside the national interest. It is bizarre to imagine that a new route from an even more careful process in Nebraska would significantly increase environmental concerns.
The administration’s latest decision is not responsible; it is embarrassing. The United States continues to insult its Canadian allies by holding up what should have been a routine permitting decision amid a funhouse-mirror environmental debate that got way out of hand. The president should end this national psychodrama now, bow to reason, approve the pipeline and go do something more productive for the climate.
N.J. led nation in construction-job loss last year
APRIL 23, 2014 LAST UPDATED: WEDNESDAY, APRIL 23, 2014, 1:21 AM BY LINDA MOSS STAFF WRITER THE RECORD
* Job losses tied in part to a very tough winter
Despite hopes that rebuilding after Superstorm Sandy would boost New Jersey’s construction industry, that sector shed more jobs in the past 12 months here than in any other state in the nation.
From March 2013 through March this year, New Jersey lost 4,600 construction jobs, a 3.4 percent drop year-over-year, according to an analysis of federal Bureau of Labor Statistics data by the Associated General Contractors of America, a trade group. New Jersey construction employment sank to 131,500 from 136,100 during that 12-month period, the trade group said.
Economic experts blamed the Northeast’s particularly severe winter with putting a damper on construction in New Jersey, as well as the red tape and bureaucratic delays that have thwarted the reconstruction of homes and businesses damaged by Sandy. In addition, the state’s office market is depressed, capping that kind of development.
Charles Steindel, chief economist for the New Jersey Department of Treasury, was one of the experts who blamed the tough winter for resulting in construction-job losses. In a normal year the number of construction workers on the job in New Jersey in midwinter is more than 10 percent lower than in the fall, he said.
“The numbers everybody looks at are corrected for this normal seasonal variation,” Steindel said. “But this winter has been far from normal. The average temperature in New Jersey from December to March was 31.7 degrees, 4 degrees colder than the average for the last 20 years. With such bitter cold, compounded by the heavy snowfalls in January and February, construction was at an unusually low ebb. We anticipate that the spring thaw will be reflected in better construction numbers.”
Kenneth Simonson, chief economist for the Arlington, Va.-based AGC, also said that even though the labor statistics are seasonally adjusted, based on averages from prior years, this year that may not have been enough to offset the impact of the winter.
– See more at: https://www.northjersey.com/news/business/bleak-construction-figures-for-state-1.1000998#sthash.OgFEQxpp.dpuf
APRIL 19, 2014 LAST UPDATED: SATURDAY, APRIL 19, 2014, 1:21 AM BY ANDREW WYRICH STAFF WRITER THE RECORD
* Nationwide flow of venture capital isn’t washing ashore here
A new report on Friday said funding for start-ups in New Jersey dropped sharply in the first quarter, falling 78 percent from the period a year ago and continuing a trend that began in the second quarter last year.
In contrast, funding for start-ups nationally reached levels not seen since 2001.
According to a MoneyTree Report by PricewaterhouseCoopers and the National Venture Capital Association, investors funneled $19.6 million in funding to five New Jersey companies in the first three months of this year, down from more than $80.2 million that went to eight companies in the 2013 quarter.
Two North Jersey companies were among the five that received funding. The Clifton-based software maker Caktus Inc., which designs software that tracks a person’s water intake, received seed funding. LiveU Ltd. of Hackensack, which develops technology for live broadcasting, received later-stage funding. The amount invested into both companies was not disclosed in the report.
“The $19.6 million invested is the lowest quarter in MoneyTree Report history, and the funding in New Jersey continues to trend downward in recent quarters,” Brett Harrington, a senior manager at PricewaterhouseCoopers Emerging Companies Services, said in a statement. “Hopefully, the overall increase that has been seen nationally will positively impact New Jersey in Q2.”
Yearlong slide
The money venture capitalists invested in New Jersey-based start-ups and the number of companies that got funding have declined steadily since the second quarter of 2013. In the third quarter last year, the roughly $20 million invested in 11 companies was the lowest amount invested in New Jersey in 15 years, according to the report.
– See more at: https://www.northjersey.com/news/business/tight-state-for-start-ups-1.999421#sthash.pQvL7Ybe.dpuf
‘Ridiculous’: Administration punts on Keystone, Obama faces Dem revolt
The Obama administration once again has punted on a final decision for the Keystone XL pipeline, announcing ahead of the holiday weekend it is extending a key review period indefinitely — a move that could push off a determination until after the midterm elections.
Republicans, as well as red-state Democrats who want the proposed Canada-to-Texas pipeline approved, slammed the administration for the delay. Democrats even threatened to find ways to go around the president to get the project approved.
“It’s absolutely ridiculous that this well over five year long process is continuing for an undetermined amount of time,” Sen. Heidi Heitkamp, D-N.D., said in a statement.
Republican Nebraska Rep. Lee Terry called the decision “shameful,” noting that another spring construction season will come and go without the project.
The administration had been in the middle of a 90-day review period for federal agencies assessing an environmental study from the State Department.
But the State Department said Friday it is giving agencies “additional time” to weigh in, in part because of ongoing litigation before the Nebraska Supreme Court which could affect the pipeline’s route. If the route changes, officials made clear the State Department reserves the right to conduct another environmental impact study to include more public comments, which could delay the process more.
NJ lost 1,300 jobs in March; unemployment rate ticks up
The loss of 1,300 jobs in March puts New Jersey down 1,900 jobs for the year, as even traditionally strong sectors such as health and leisure lost ground.
The state lost 600 government jobs and 700 private jobs in March, the second monthly fall in a row for the private sector, according to the monthly employment report released Thursday by the New Jersey Department of Labor and Workforce Development.
Unemployment, which stood at 7.1 percent in January and February, rose to 7.2 percent in March – above the national rate of 6.7 percent, the department reported.
Adding to the bad news, revised numbers for February showed that employment in the state fell by 1,100 more jobs than first reported, losing 4,800 instead of the previously announced 3,700 jobs.
“I think we sum up the report by saying that New Jersey’s labor market is going nowhere slowly,” said Patrick O’Keefe, director of economic research at the accounting firm CohnReznick. “Nothing stands out as a reason to be optimistic about where we are going.”
The 1,900 jobs so far this year is particularly weak compared to the 18,800 jobs added in the same period in 2013. New Jersey has recovered just 93,000, or 36 percent, of the 258,000 jobs lost in the recession and its aftermath.
In comparison, New York has recovered all of the 330,000 jobs it lost in the period and added about 164,000. Connecticut has regained about half of the 119,100 jobs lost. As of March the U.S. had recovered all the private sector jobs it lost. (Morley/The Record)
Buried deep on the website of the U.S. Census Bureau is a number every American citizen, and especially those entrusted with public office, should know. It is 86,429,000.
That is the number of Americans who in 2012 got up every morning and went to work — in the private sector — and did it week after week after week.
These are the people who built America, and these are the people who can sustain it as a free country. The liberal media have not made them famous like the polar bear, but they are truly a threatened species.
It is not a rancher with a few hundred head of cattle that is attacking their habitat, nor an energy company developing a fossil fuel. It is big government and its primary weapon — an ever-expanding welfare state.
First, let’s look at the basic taxonomy of the full-time, year-round American worker.
Reader says The taxes and mandates placed upon private enterprise make doing business in NJ uncompetitive with other states
As a business owner in the private sector, let me add to it from that perspective.
The taxes and mandates placed upon private enterprise make doing business in NJ uncompetitive with other states.
The foolish Democrats that control Trenton kill the economy here every time they pass another law with the stroke of a pen.
Nobody ‘mandates’ that private enterprise make a profit (which is taxed), yet the morons who are elected from the big cities (Newark, Camden, Paterson etc) that milk the funds from the state treasury continue to pass rules that hurt businesses.
Many businesses will never expand here, and move new operations to more ‘tax friendly’/’regulation friendly’ states.
No large business would ever consider moving here.
The state is broke due to ‘obligations’ to the unions as mentioned in the previous post.
Further draining the state treasury are the billions of dollars that get flushed down the toilet in the “Abbot’ school districts (thanks to the left wing activist NJ supreme court).
It should come as no surprise that the ‘big earners’ make sure they do their ‘time’ out of state….spend 181 days per year in FLA and vote there… so NJ can no longer pick their pockets… and the rest of us will have to make up the difference in higher taxes..
Try to explain logic such as that to the Dumbocrats in Trenton… good luck.
Newark-based Star-Ledger newspaper cutting 167 jobs
The Star-Ledger’s announcement of 167 job cuts — among 306 layoffs made by owner Advance Publications Inc. Thursday — reflect long-running troubles at the state’s largest newspaper, which has felt the impact of a nationwide drop in newspaper readership and advertising revenue.
Thursday’s cuts are the latest in a series of layoffs and buyouts since 2008 at the Newark paper, a New Jersey institution that has won three Pulitzer Prizes but lost millions of dollars in recent years. The cuts include 40 jobs in the newsroom, which is not unionized, bringing it to a staff of about 116, down from a high of 350 before the first buyout in 2008.
In addition to the Star-Ledger cuts, 124 full and part-time jobs were eliminated at other daily and weekly papers owned by Advance Publications Inc., in New Jersey and Pennsylvania, and 15 at the company’s web site, NJ.com.
The layoffs are part of a plan announced last week by Advance to create a new company, NJ Advance Media, based in Woodbridge, to provide advertising, marketing and news content to The Star-Ledger, the three other daily papers in New Jersey and Pennsylvania, and NJ.com. The company plans to focus on efforts to grow its digital operations.
Star-Ledger employees were called in Thursday for one-on-one meetings, where they were either told they were being let go or offered a job with the new company. The new jobs, in some cases, carried salaries more than 5 percent lower, along with reduced benefits, according to employees who asked not to be identified. According to the newspaper, the cuts included the entire full-time business staff and positions in sports, features, photos and news. (Lynn/The Record)
The Unemployment Puzzle: Where Have All the Workers Gone?
The U.S. unemployment rate is down, but rising numbers of Americans have dropped out of the labor force entirely
A big puzzle looms over the U.S. economy: Friday’s jobs report tells us that the unemployment rate has fallen to 6.7% from a peak of 10% at the height of the Great Recession. But at the same time, only 63.2% of Americans 16 or older are participating in the labor force, which, while up a bit in March, is down substantially since 2000. As recently as the late 1990s, the U.S. was a nation in which employment, job creation and labor force participation went hand in hand. That is no longer the case.
What’s going on? Think of the labor market as a spring bash you’ve been throwing with great success for many years. You’ve sent out the invitations again, but this time the response is much less enthusiastic than at the same point in previous years.
One possibility is that you just need to beat the bushes more, using reminders of past fun as “stimulus” to get people’s attention. Another possibility is that interest has shifted away from your big party to other activities.
Economists are sorting out which of these scenarios best explains the slack numbers on labor-force participation—and offers the best hope of reversing them. Is the problem cyclical, so that, if we push for faster growth, workers will come back, as they have in the past with upturns in the business cycle? Or do deeper structural problems in the economy have to be fixed before we can expect any real progress? To the extent that problems are related to retirement or work disincentives that are either hard to change or created by policy, familiar monetary or fiscal policies may have little effect—a point getting too little attention in Washington.
‘Fragile’ Port Newark/Elizabeth weighs on N.J. economy
MARCH 27, 2014 LAST UPDATED: THURSDAY, MARCH 27, 2014, 12:28 AM
BY CHRISTOPHER MAAG
STAFF WRITER
THE RECORD
When the movement of cargo through the shipping terminals in Port Newark/Elizabeth seized up this winter, causing long truck lines that nearly spilled onto the New Jersey Turnpike, people at the port started pointing fingers. Truckers said the longshoremen were lazy. Longshoremen accused the truckers of being disorganized.
And everyone blamed the weather. This past winter’s snowfall “is the root cause of the delays,” said John Nardi, president of the New York Shipping Association.
But a closer look shows that crises at Port Newark/Elizabeth, often called simply Port Newark, are increasingly common and stem from a complex mix of factors, including manpower problems, antiquated procedures and turf battles. The port has closed or nearly closed four times in the last 15 months, twice when the weather was not in play.
“This port is fragile,” said Rick Larrabee, director of port commerce for the Port Authority.
