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Article Artículo

California and Texas: How Many Jobs Were Created on Bill Gates’ Estate?

If it’s not immediately apparent how the rate of job creation on Bill Gates’ estate is relevant to the pace of job growth in California and Texas then you have to think about the issues more carefully. In recent weeks, many proponents of low taxes have been touting the faster pace of job growth in low tax Texas compared with high tax California as proof of the economic superiority of the low tax model.

There is little doubt that Texas has seen faster job growth in recent decades. Since the business cycle peak in 1981 employment has grown by 56.0 percent in California, compared to 77.9 percent in Texas. If our only measure of economic success is job creation, there is no doubt that Texas wins the prize, but it is a bit more complicated.

First there is the issue of oil, which is important but by no means the only factor explaining differences in growth. By using 1981 as a base year, we are comparing a near peak oil price with another period of high prices. But Texas’ growth pattern does look a bit like an OPEC country. If we take the low oil price year of 2000 as the end point, California wins the job growth prize 48.6 percent to 47.1 percent. So clearly the price of oil (and gas) plays a big part in the economic performance of Texas.

However there is another very important factor in the story, building restrictions. In general, California imposes relatively tight restrictions on building, whereas regulations in Texas are considerably more lax. The result is that, relative to the size of its population, much more housing has been built in Texas over the last three decades than in California. And this has meant that housing is considerably cheaper in Texas than in California.

Just to take a couple of examples, according to the Department of Housing and Urban Development, the fair market rent for a two-bedroom apartment in Los Angeles County is $1,398 a month. In Harris County, which includes Houston, it’s just $926 a month. The fair market rent for a two-bedroom apartment in Santa Clara County, which includes San Jose, is $1,649 a month. It was just $894 in Dallas County in 2010, the most recent year available.

CEPR / March 13, 2014

Article Artículo

Latin America and the Caribbean

Venezuela

World

Venezuela: Who Are They and How Did They Die? [New]

Since February 23, CEPR has been keeping track of those who have died during the last month of protests in Venezuela. Below is the most recent available information on the location, causes and status of investigations into the deaths. This list will continue to be updated as more information becomes available. As of March 24, the list contains 37 individuals; however in some cases press reports indicate that the death was not directly associated with the protests. Never the less, as they have often been reported as such, they are included below.

There are deaths on both sides of the political spectrum. In some cases, members of Venezuelan security forces have been implicated and subsequently arrested for their involvement. Over 10 individuals have reportedly been killed by crashing into barricades, from wires strung across streets by protesters and in some cases from having been shot trying to remove barricades. Six members of the National Guard have been killed.

-         Bassil Alejandro Da Costa, an opposition demonstrator was shot, reportedly in the head, and killed in Caracas during the opposition protest that took place on February 12.

-         Juan Montoya, a pro-government community activist, was reportedly shot in both the head and chest and died. Montoya’s body was found a short distance from the body of Da Costa. On February 26, the Attorney General, Luisa Ortega Diaz, announced that 8 officers from SEBIN, the Venezuelan intelligence agency, had been arrested for their role in the killing of Da Costa and Montoya. As of March 11, 6 SEBIN officers remain in jail. President Maduro has also removed the head of SEBIN.

-         On February 12, Roberto Redman, another opposition demonstrator was also shot, reportedly in the head, and killed. The killing took place in a neighborhood in eastern Caracas. Witnesses attributed his death to armed civilians. There has been no update on the status of any investigation.

-         On February 18 José Ernesto Méndez, a 17-year-old student who was participating in a demonstration in the Sucre department, was hit by a truck and later died. The Attorney General stated that the driver of the truck has been apprehended and charged with homicide.

-         On the same day Genesis Carmona, a student and beauty queen was shot and killed in the state of Carabobo. Unconfirmed reports suggest that the she was shot from behind, potentially from within the group she was protesting with, though others contest that version of events. The government has pledged a full investigation. There have been no further updates on the status of the investigation.

-         On February 19, Julio Gonzalez, a member of the public ministry in Carabobo reportedly died after crashing his vehicle while attempting to avoid a roadblock put up by protesters.  

CEPR / March 12, 2014

Article Artículo

Economic Growth

Wall Street

A Budget that Would Make Our Economy #BetterOff

This morning, one of the largest caucuses in Congress, the Congressional Progressive Caucus, released the Better Off Budget. The headline numbers are impressive: 8.8 million jobs by 2017, and $4 trillion in deficit reduction over the next 10 years.

Budget experts and journalists have posted good summaries of the dozens of proposals in the Better Off Budget, such as investments in infrastructure and clean energy; the reversal of sequestration and other spending cuts; and funding for the long-term unemployed, rehiring of state employees, and public works and job training programs.

CEPR and Nicole Woo / March 12, 2014

Article Artículo

Government

Workers

What Did CBO Really Say about the Minimum Wage?

Tomorrow morning (March 12), the Senate Health, Education, Labor & Pensions Committee will hold a hearing titled "From Poverty to Opportunity: How a Fair Minimum Wage Will Help Working Families Succeed." The witnesses will range from the Secretary to Labor, to a renowned economist, to a Catholic nun.

Douglas Elmendorf, director of the Congressional Budget Office, will also be testifying.  He'll likely be presenting the results of a recent CBO study on the effects of a minimum wage increase. That report generated a lot of media attention, mostly for its projection that a raise to $10.10 per hour would "reduce total employment by about 500,000 workers, or 0.3 percent."

CEPR and Nicole Woo / March 11, 2014

Article Artículo

Latin America and the Caribbean

Venezuela

World

The Role of the OAS and UNASUR in Mediating Inter-Regional Conflicts

As a result of the recent events that have taken place in Venezuela, the Organization of American States (OAS) and the Union of South American Nations (UNASUR) have both called for discussions. Venezuelan President Nicolás Maduro would like to see the conflicts resolved within the context of UNASUR and has rejected attempts by the OAS to address the situation.

Last week, the OAS held a private meeting to consider the request of Panama to convene a Meeting of Consultation of Ministers of Foreign Affairs with regard to events in Venezuela, leading to the decision by President Maduro to break diplomatic relations with the Panamanian government.

Although the OAS meeting was held behind closed doors with no media allowed, Secretary General José Miguel Insulza made a lengthy public statement, which was posted on Thursday. Among other things, he stated, “For decades already, no single member has been able to dominate the will of the others.”

However, as was pointed out in the most recent Congressional Research Service report [PDF], historically, the OAS has acted consistently with U.S. foreign policy objectives. It’s also worth noting that the United States was the organizations largest donor, contributing nearly $65.7 million [PDF] in fiscal year 2013, which is equivalent to 41 percent of the total 2013 OAS budget. Considering these sizeable donations it would be safe to assume that the US plays a dominant role in defining the organizations foreign policy. 

The Congressional Research Service report states that:

Although OAS actions frequently reflected U.S. policy during the 20th Century, this has changed to a certain extent over the past decade as Latin American and Caribbean governments have adopted more independent foreign policies. While the organization’s goals and day-to-day activities are still generally consistent with U.S. policy toward the region, the United States’ ability to advance its policy initiatives within the OAS has declined.

CEPR and Nate Singham / March 10, 2014

Article Artículo

Latin America and the Caribbean

Venezuela

World

Venezuelan Attorney General Meets with Human Rights Group and Holds Members of the Security Forces Responsible for Their Actions

The United States government, as well as many in the media and punditry, has consistently laid blame for the rising death toll on the Venezuelan government. Last week, in prepared remarks for an OAS meeting on Venezuela, the U.S. representative stated:

The United States notes with concern that the situation in Venezuela has continued to deteriorate since the Permanent Council last met on February 19. The death toll was 13 then, it is now at least 19 and we are gravely disturbed by what appears to be a pattern of security personnel using excessive force.

There is no doubt that some members of the Venezuelan security forces have used excessive force – in fact, at least 14 of them have been arrested for these abuses. The Venezuelan government is not denying this fact, something recognized by the Secretary General of the OAS yesterday when he stated:

Much of this is recognized by both the Government and the opposition; nobody denies it, everyone says something must be done about it.


Far from trying to hide the role of some members of the security forces in human rights abuses or the deaths of citizens, the Venezuelan Attorney General (AG) has released statements to the press almost daily detailing exactly how many deaths there have been, how many individuals have been detained, released and remain in jail; how many human rights violations have been documented and are being investigated; and updates on the status of investigations into abuses.

Each death is as unnecessary and devastating as the one prior, but not all are the same and to portray the violence as one sided – from either side – is both incorrect and misleading. While the death toll tragically reached 21 on Thursday, March 6, it’s important to note that as many have been killed either crashing into barricades or by wires strung across streets as have been killed while protesting. In the last week, two members of the National Guard have been shot and killed while attempting to remove barricades blocking streets.

CEPR / March 10, 2014