Economic Indicators:

An Update for the 7 Rivers Region

What would you say worries you most about the

national economy at this time?

40

50

60

70

80

90

100

110

April 2002 April 2004 April 2007*** February 2009***

April 2011***

7 Rivers Consumer Sentiment

*** Survey moves to web

7Rivers

National

80.0

100.0

120.0

140.0

160.0

180.0

200.0

220.0

240.0

Jan-98 Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12

Case-Shiller Index of Home Prices

Phoenix

Minneapolis

7 Rivers Region

$75,000

$100,000

$125,000

$150,000

$175,000

1997-Jan

1999-Jan

2001-Jan

2003-Jan

2005-Jan

2007-Jan

2009-Jan

2011-Jan

Average Price of Single Family Homes Sold in 7 Rivers Region

40

60

80

100

120

140

160

1997-Jan 2000-Jan 2003-Jan 2006-Jan 2009-Jan 2012-Jan

Average Number of Days on Market 7 Rivers Region

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1,000.0

1990 1993 1996 1999 2002 2005 2008 2011

Foreclosures Filed in 7 Rivers Region

-

50.0

100.0

150.0

200.0

250.0

300.0

1990 1993 1996 1999 2002 2005 2008 2011

La Crosse Foreclosures Filed

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Jan-99 Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11

Number of Building Permits in La Crosse MSA

Total Permits

Single Unit Permits

-8

-6

-4

-2

0

2

4

6

8

1 13 25 37 49 61

Employment Cumulative Decline from NBER Peak (pct)

1990

2001

2007

0.00

2.00

4.00

6.00

8.00

10.00

12.00

< 5 Weeks

5 to 14 Weeks

15-26 Weeks

>26 Weeks

Unemployment Rate by Duration

Source: BLS

0%

25%

50%

75%

100%

Jan-80 Jan-84 Jan-88 Jan-92 Jan-96 Jan-00 Jan-04 Jan-08 Jan-12

Percent of unemployed

< 5 Weeks

5 to 14 Weeks

15 to 26 Weeks

> 26 Weeks

Source: BLS

-8

-7

-6

-5

-4

-3

-2

-1

0

1

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49

Cumulative Decline in Wisconsin Employment

19802001

2007

2550.0

2600.0

2650.0

2700.0

2750.0

2800.0

2850.0

2900.0

2950.0

3000.0

3050.0

Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14

Wis

consin

Non-F

arm

Em

plo

ym

ent:

Thousands

The Walker Promise: 250,000 Jobs

Source: BLS, http://goo.gl/lE69o

2450.0

2500.0

2550.0

2600.0

2650.0

2700.0

2750.0

2800.0

2850.0

2900.0

2950.0

Jan-00 Jan-02 Jan-04 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14

Min

nesota

Non

-Farm

Em

plo

yment: T

housands

The Dayton Promise: 240,000 Jobs

Source: BLS, http://goo.gl/lE69o

-6 -4 -2 0 2 4 6 8

Total

Construction

Manufacturing

Trade, Trans., Util.

Finance

Prof. and Bus. Services

Educ. And Health

Leisure and Hospitality

Government

Change in State Employment by Industry

MNWI

140.0

150.0

160.0

170.0

180.0

190.0

Jan-91 Jan-94 Jan-97 Jan-00 Jan-03 Jan-06 Jan-09 Jan-12

Thousands

7 Rivers Employment: SA

500.0

600.0

700.0

800.0

900.0

1,000.0

1,100.0

Jan-07 Jan-09 Jan-11

Thousands

La Crosse CountySales Tax Revenue

Taggert J. Brooks, PhDChair and Associate Professor of Economics

University of Wisconsin-La Crosse

Rising Income

Inequality

I am an academic economist.

My income is above the median for the US

and this region, but below the median in this

room.

Its all relative, and sometimes that matters for

our perspectives. It matters for monkeys too.

Non-Standard Disclaimer:

Monkeys and Fairness

- 10 20 30 40 50 60

they know the right people or were born into wealthy

families

of their own hard work, ambition, or

education.

other

Most rich people are rich because...

7 Rivers Region

National

Louis D. Brandeis

“We may have democracy, or we

may have wealth concentrated in

the hands of a few, but we

cannot have both.”

-

5.0

10.0

15.0

20.0

1913 1937 1961 1985 2009

Top 1% of Income Earners Share of Total Income – U.S.

InputsSkills

Talent

Education

Family

The

Market

Consumers

The

Government

Taxes/Transfer

s

-

5.0

10.0

15.0

20.0

1913 1933 1953 1973 1993

Top 1% of Income Earners Share of Total Income – U.K.

-

5.0

10.0

15.0

20.0

1919 1949 1979 2009

Top 1% of Income Earners Share of Total Income - Sweden

Gini Coefficient

A/(A+B)

Gini Coefficient

0 1More Equal

Gini Coefficient For Countries

Namibia .707

Mexico .517

US .450

China .415

UK .340

Sweden .230

Gini Coefficient For Pro

Salaries

Baseball .626

Golf .566

Basketball .528

Football .512

Hockey .458

Frank and Cook

“Winner-take-all markets have

proliferated in part because

technology has greatly extended

the power and reach of the

planet's most gifted

performers....Now that most

music we listen to is

prerecorded...the world's best

tenor can be literally everywhere

-

5.0

10.0

15.0

20.0

1919 1949 1979 2009

Top 1% of Income Earners Share of Total Income - Sweden

Rick Warren

“Well certainly the Bible says we

are to care about the poor....But

there's a fundamental question

on the meaning of "fairness."

Does fairness mean everybody

makes the same amount of

money? Or does fairness mean

everybody gets the opportunity

to make the same amount of

Rick Warren

“When you subsidize

people, you create the

dependency. You — you rob

them of dignity.”

Means-Tested Transfers

AFDC/TANF (Temporary Assistance to Needy Families)

CTC (child tax credit)

EITC (earned income tax credit)

Medicaid

SSI (Supplemental Security Income),

WIC (The Special Supplemental Nutrition Program for Women, Infants, and Children)

Food Stamps, General Assistance, Housing Assistance, Free and Reduced Lunches

Social Insurance Transfers

SSDI (disability insurance),

Medicare,

Social Security Retirement,

UI (unemployment insurance),

Veterans Benefits,

WC (workers compensation)

Transfers to All

Medicare

Social Security Retirement

Felix Frankfurter

“It is a wise man who said that

there is no greater inequality

than the equal treatment of

unequals.”

Little Things Can Matter

Admission Policy and College Selectivity.

Early Childhood Interventions

Nudge

Explanations for Rising

Inequality

Skill Biased Technological Innovation

Education Inequality

“Globalization”

Economics of Superstars

Immigration

“Coming Apart” Household Formation

Falling Unionization (Males)

Falling Real Minimum Wage (Females)

0 400 800 1,200 1,600 2,000

Doctoral degree

Professional degree

Master's degree

Bachelor's degree

Associate degree

Some college, no degree

High-school graduate

Less than a high school diploma

2010 Median Weekly Earnings by Degree

Solutions

Improve Transfers to Poor

Tax “Winner-take-all” markets to reduce

income variance.

“Brandeis Tax”

Improve Education

Expand Early Childhood Interventions

Extend the School day/year

Local Income Inequality

Thanks.