From MarketWatch:
Homes in five states account for more than one-third of negative equity across U.S.
First, the good news: Rapidly rising home prices last year helped millions of troubled homeowners regain equity in their properties, data released Thursday show.
Now the bad: The recovery remained lopsided, and just five states made up more than one-third of the negative equity in the U.S. in the fourth quarter.
Rebounding from crash lows, residential prices zoomed up in 2013, and four million homes regained positive equity, according to a report from CoreLogic, an Irvine, Calif.-based analysis firm. Across the U.S., 13.3% of residential properties with a mortgage were in negative equity in the fourth quarter — meaning that owners owed more on a mortgage than their home was worth — down from 21.6% a year earlier.
“The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgaged homeowners were underwater,” said Mark Fleming, chief economist, in a statement.
But the market hasn’t completely healed: almost 6.5 million homes were in negative equity in the fourth quarter, according to CoreLogic. And certain states are worse off than others. Properties in Nevada, Florida, Arizona, Ohio, and Illinois accounted for 36.9% of total national negative equity at the end of 2013.
…
Still, even beleaguered states have seen improvement. In Nevada, for example, 30.4% of mortgaged properties were in negative equity in the fourth quarter, down from 52% a year earlier. Similarly, Florida saw its share fall to 28.1% from 40.5%.
Is the minimum wage even relevant if only 4.7% of the workforce is making minimum wage, and nearly 50% of them are between 16 and 19.
Who is really being helped? Excluding kids working kid jobs, we’re talking about 2.5% of the employed workforce.
Much ado about nothing really. I really don’t think there would be much of an impact either way, except maybe in Texas, where a good number of these minimum wage workers reside.
With something like 13 states increasing minimum wages in 2014 – a higher percentage of the employed population will be pushed further from the federal minimum, making it even less relevant.
Can’t wait to hear about “skyrocketing number of minimum wage workers” after the federal minimum wage is raised. Anyone thinking that raising the minimum wage results in a “trickle up raise” for others is fooling themselves.
#43 Ragnar (previous thread)
“The minimum wage is all about outlawing what would otherwise be a voluntary exchange of labor for compensation”
Does exploitation of workers count as voluntary exchange of labor. If you are paying $2 an hour for a job that should pay $7 just because you have workers in desperate need of anything, is that still voluntary?
“Joe Average……child of money, but had no idea” That’s not average, maybe in your world, but not in the real world.
Ben, $25 a week for food can be done, but it’s difficult, especially if you don’t have a stocked pantry, that’s the real skill we should be teaching in schools.
In the spirit of yesterday’s thread, I’m going to take an extended break from this place. This blog has become too toxic. I’ll leave you with this.
“Poverty is not caused by men and women getting married; it’s not caused by machinery; it’s not caused by “over-production”; it’s not caused by drink or laziness; and it’s not caused by “over-population”. It’s caused by Private Monopoly. That is the present system. They have monopolized everything that it is possible to monopolize; they have got the whole earth, the minerals in the earth and the streams that water the earth. The only reason they have not monopolized the daylight and the air is that it is not possible to do it. If it were possible to construct huge gasometers and to draw together and compress within them the whole of the atmosphere, it would have been done long ago, and we should have been compelled to work for them in order to get money to buy air to breathe. And if that seemingly impossible thing were accomplished tomorrow, you would see thousands of people dying for want of air – or of the money to buy it – even as now thousands are dying for want of the other necessities of life. You would see people going about gasping for breath, and telling each other that the likes of them could not expect to have air to breathe unless the had the money to pay for it. Most of you here, for instance, would think and say so. Even as you think at present that it’s right for so few people to own the Earth, the Minerals and the Water, which are all just as necessary as is the air. In exactly the same spirit as you now say: “It’s Their Land,” “It’s Their Water,” “It’s Their Coal,” “It’s Their Iron,” so you would say “It’s Their Air,” “These are their gasometers, and what right have the likes of us to expect them to allow us to breathe for nothing?” And even while he is doing this the air monopolist will be preaching sermons on the Brotherhood of Man; he will be dispensing advice on “Christian Duty” in the Sunday magazines; he will give utterance to numerous more or less moral maxims for the guidance of the young. And meantime, all around, people will be dying for want of some of the air that he will have bottled up in his gasometers. And when you are all dragging out a miserable existence, gasping for breath or dying for want of air, if one of your number suggests smashing a hole in the side of one of th gasometers, you will all fall upon him in the name of law and order, and after doing your best to tear him limb from limb, you’ll drag him, covered with blood, in triumph to the nearest Police Station and deliver him up to “justice” in the hope of being given a few half-pounds of air for your trouble.”
― Robert Tressell, The Ragged Trousered Philanthropists
Stay safe and stay classy!
#1
You wouldn’t want to look only at those making minimum wage, but those between the current minimum wage and the proposed. That’s a much bigger number.
3 – Sure, but at diminishing levels of benefit. And I still strongly feel that this will not “trickle up”. So of you were making $8.75 previously, and the minimum pushes up to $8.25, what will you see? I suspect nothing, no raise.
(Sorry, it has no chance of moving straight up to $10.)
The other thing to keep in mind is the geographic distribution of any benefit/cost, as it is nowhere near evenly distributed across the country.
We can argue about whether this is beneficial or negative, but what we can’t argue about is WHERE we will see the impact, which will be: Texas, Louisiana, Oklahoma, and Idaho. Everywhere else falling significantly below these four states.
And this is even ignoring the Texas Conundrum… With the highest number of minimum wage workers of any state, they are still managing to post some of the strongest state job numbers and economic growth of any state.
Yet the right wingers are hell bet opposing it. the wealthiest among us opposes that 4.7% of the population including teenagers, single mothers, immigrants get the chance to make a living wage.
“Much ado about nothing really. “
I’m not sure what conversation we’re talking about, but minimum wage <> living wage. And if you posit that minimum wage needs to equal minimum wage, we’re not talking about $10/hr for a primary wage earner.
the wealthiest among us opposes that 4.7% of the population including teenagers, single mothers, immigrants get the chance to make a living wage.
I’m not opposing it, but what about the 400 thousand that will find themselves with absolutely zero income after this takes place?
where is the evidence supporting this?
“I’m not opposing it, but what about the 400 thousand that will find themselves with absolutely zero income after this takes place?”
7- Anon, brilliant response! If it’s nothing (only 4.7%), why all the talk that this will ruin the economy?
Yet the right wingers are hell bet opposing it. the wealthiest among us opposes that 4.7% of the population including teenagers, single mothers, immigrants get the chance to make a living wage.
“Much ado about nothing really. “
@RBReich: If the min wage of 1968 were adjusted for inflation and productivity gains it would be $15/hr today.
2- Wow, this is seriously awesome!!! Rather brilliant way of showing how corrupted this world really is. You can’t paint a clearer picture of how the economic system really works than the way this guy did it. lol….bottled water says it all. They polluted all the water and left us with the bill of having to pay for clean water. Hell, some bottled water in the small bottles is going for a higher cost than gas. Thieves!
Damn this passage sticks a dagger into the heart of the defenders of our corrupted system.
““Poverty is not caused by men and women getting married; it’s not caused by machinery; it’s not caused by “over-production”; it’s not caused by drink or laziness; and it’s not caused by “over-population”. It’s caused by Private Monopoly. That is the present system. They have monopolized everything that it is possible to monopolize; they have got the whole earth, the minerals in the earth and the streams that water the earth. The only reason they have not monopolized the daylight and the air is that it is not possible to do it.”
11 – totally incorrect, do the math yourself.
Min wage is a bit of nonesnse to young kids as it just means there will be more jobs that are off the books, unpaid internships, waitress jobs where they are exempt from the higher wage etc and self employeed type jobs.
My dry cleaner up the bl0ck been in business forever, guy who owns it in his 50’s took it over from his dad and worked there when he was ten years old.
He pays ten bucks an hour. Brings in Coffee for everyone at 7am when they open and at lunch time buys lunch for everyone, he also subscribes to the newspaper the girls can read at front counter if it slows down.
He gives no vacation, no sick days, no bonus, does not allow a tip jar as he is a pretty strict jew and thinks a xmas tip jar is tacky anyhow and even worse if it gets to a real slow day he sends his employees home and pay stops.
Guess what he has an endless stream of mainly Girls in College or Highschool who want to work the counter, an endless stream of mexican ladies who wash clothes. His kids were forced to work there in HS and college every summer as a condition of their tuiition.
Lets say he want to close up shop one day. He owns the building outright He could litterally say at 3pm everyone out. He pays his employees in cash so it would be hand them money out of register and be on his way.
For other stuff now that requires skill sets and involve dangerous chemicals or flood restoriation stuff he outsources it and gets whole sale price. He dont want to hire folk for that or buy equipment. Folks like that dont work off the books.
Honestly, lets say my daughter wants a job in HS, Saturday is his busy day you could work one day a week. Show up at 7am start working, chinese food or pizza delivered around lunch time for free then sometime between 3pm and 5pm it slows down and he slowly starts releasing the girls. So lets say three pm he goes ok it is slowinn down hands my daughter 80 bucks for 8 hours work. What is big deal. Plus come financial aid time it also works out plus she is on my medical plan anyhow.
That guy cant pay 15 an hour on the books with benefits, he would just fire half his staff, outsource what he can them make remaining staff work like dogs with no free lunch and coffee. Plus he would expect skilled workers. At current scheme customers 16 year old daughter wants to check in shirts a few saturdays for him or a 17 year old kid wants to drive his van to make some deliveries he does it. It will just take jobs from the kids who will end up babysitting or waitressing or bartending which is all exempt from min wage
Grim [1];
Many blue-collar union contracts are indexed to the minimum wage.
Why Unions Want a Higher Minimum Wage
Labor contracts are often tied to the law—and it reduces the competition for lower-paying jobs.
Con’t [15];
Bad tag. Link: http://online.wsj.com/news/articles/SB10001424127887324048904578318541000422454
anon – if you’d like, I can sit down with you over a cup of coffee and explain to you the dynamics of wage rate arbitrage in both on-shore, near-shore, and off-shore markets. This is a space with which I am intimately familiar.
The dynamics of this arbitrage and resulting cost/benefit of quality has actually begun to reverse, increasing the trend of re-repatriation of previously off-shored labor back to the United States. An increase of $2-3 an hour will not just slow this trend, but completely reverse it with such force that within 6 months a significant number of the remaining low-skill back office jobs will be off shored. There are communities across the US where these industries are the largest employers in the metro area, and losing these jobs would decimate the local economies. I don’t want to sound mean, but these are generally low-skill positions and there simply aren’t enough alternative positions in the local economy to absorb this labor pool.
Fabu [2];
a job that should pay $7
Why? Because you say so? Do I really need to drag you through history’s trash heap of failed command economies? Or review Hayek?
Anyone’s labor is worth only as much as the next guy will do the same for — and that’s all of us.
14 JJ
Do you believe employers should hire workers off the books?
Is that considered a crime?
I understand hiring a neighbor kid to mow the grass, shovel snow, etc off the books.
Is following the law a grey area, do we pick and choose which laws to follow when we feel like?
I understand the financial logic of what he is doing, but are we a nation of laws or lawbreakers?
18.
Unless you are “grandfathered” and are getting a pension, social security check, medicare, medicaid, etc.
Then it is a guaranteed payment, even if there is no “bank account” to pay for these retired workers.
It is always expected that the “current workers” will provide for the already retired.
First place retirees look to cut pay/bennies is from the guy still busting his a**.
As long as they get their check, who cares where it is coming from or paying for it.
Jesus, you make it sound like living on a slave wage is no problem. 25 dollars a week for food is more than enough right? How you have no trouble surviving on a slave wage is simply amazing. Honestly, it makes me think you are full of it, and never lived a day in your life trying to survive on a slave wage. You are telling me that your family didn’t help you through college? Btw, are you a lightweight when it comes to drinking? How the hell did you feed yourself and go out drinking on 25 dollars a week? Was taking a sip, considered a night out drinking for you in college?
“Don’t give me that. I’m still paying rent on a town home and I have to heat it to 60 degrees by terms of my lease. The gas bill was 60 bucks. You’re not making your point. I went to grad school right after college. Not only did I survive without trouble on that slave wage, I went out drinking every night and still managed to save money.”
From Bloomberg:
Payrolls in U.S. Rise 175,000; Unemployment Rate Climbs
Employers added more workers than projected in February, indicating the U.S. economy is starting to bounce back from a weather-induced setback. The jobless rate unexpectedly climbed from a five-year low.
The 175,000 gain in employment followed a revised 129,000 increase the prior month that was bigger than initially estimated, Labor Department figures showed today in Washington. The median forecast of economists in a Bloomberg survey called for a 149,000 advance in February. Unemployment rose to 6.7 percent from 6.6 percent as more people entered the labor force and couldn’t find work.
[22] grim,
If I recall correctly, this number is about twice what the “street” expected. Yet again, a surprise to the upside.
How, I wonder, does an entire industry with people watching this get it so wrong? Again? Perhaps all those people who watch payroll and crunch numbers aren’t the best and brightest after all. At least, that’s what Fabian and anon will tell you.
In his case his whole business model is hiring girls 16-20 to work the register and middle aged mexican women to wash the clothes. In his case the 16 year old girl eating pizza checking in clothers and helping old ladies and women with baby carriages with door are only worth so much. Plus I doubt the mexican women can even work on the books. Honestly, he is between a rock and a hard place.
Also when I did the Sandy renovations some folks refuse to work on the books or get a check. Sure the contractor I paid a check to for his own work and material. But he subbed a lot of work. The two unkilled guys who did demo and sheetrocked he asked for cash and I he gave them the cash every friday. He had two friends who work full time on the books in Manhattan for a large REIT that owns several apt buildings once is plumber and one is an electrician both were willing to take a check made out to cash. They would not do the job on the books as they are not licensed outside NY and they are not LLCs etc. I would say it is hard to only hire folks on the book. Plus folks lie. So many neighbors got contractors who claimed they were getting permits and had insurance. One neighbor actually called the insurance agent and found out his policy lasped years ago. Heck one guy I hired who told me he was unlicensed and uninsured for a small job who did it for cash. later on I looked him up and he was licensed and insurance. Found out he does not like to give our his license or insurnace number unless he has to.
Look at VRBO I am putting it on my tax return most folks dont. Folks rent a place at beach that is less than hotel. Partily cause no occupany tax or income taxes paid by owner which means he can charge less that a hotel.
Untill Sandy I never ever hired off the books folks. But honestly my whole renovation was done that way. Even more strange I got receipts off these folks that say paid in cash and submitted them for reimbursement and got paid. So NYS could care less who I hired. Even worse NYS/FEMA/NFIP count average costs in payouts. Guess what on the book folks, with permits and licenses charge double off the books prices which means you are paying out of pocket for the fact they are on the books.
19.Phoenix says:
March 7, 2014 at 9:10 am
14 JJ
Do you believe employers should hire workers off the books?
Is that considered a crime?
I understand hiring a neighbor kid to mow the grass, shovel snow, etc off the books.
Is following the law a grey area, do we pick and choose which laws to follow when we feel like?
I understand the financial logic of what he is doing, but are we a nation of laws or lawbreakers?
Minimum wage in 1968 was $1.60, which would put it at about $10.75 today, not $15.00.
That said, it was also $1.60 in 1972, which would put it at $8.95 today, not $10.75.
So which is it? An why?
The Reich quote said adjusted for inflation and productivity. I have no idea how to do the latter, or even if you should, but you only did half of his equation.
Adjust for productivity? Not sure how we can do that without bringing unemployment into the picture. Increasing productivity means fewer workers are needed to provide the same goods to market. How does that factor into the discussion? We’re talking about trading higher wages for few at the expense of fewer workers employed.
The other issue is why should the worker gain the benefit of the productivity improvement, and not the consumer? Realize that if you think it should be the worker, it means you would be OK with paying about $5,000 for an average desktop computer today. I bet you wouldn’t, and that your jeans are made in Bangladesh.
How about this my complex requires you keep the heat on 60 all winter in your unit even if not living there. We have electric heat. We are talking 500 to 600 a month.
My tennat is most likely as mad as hell I think as he had no clue how much electric heat could cost, Then PSEG doubled the rate on us. We switched from LIPA to PSEG on LI and the price of electricity went way up instead of down.
21.Michael says:
March 7, 2014 at 9:15 am
Jesus, you make it sound like living on a slave wage is no problem. 25 dollars a week for food is more than enough right? How you have no trouble surviving on a slave wage is simply amazing. Honestly, it makes me think you are full of it, and never lived a day in your life trying to survive on a slave wage. You are telling me that your family didn’t help you through college? Btw, are you a lightweight when it comes to drinking? How the hell did you feed yourself and go out drinking on 25 dollars a week? Was taking a sip, considered a night out drinking for you in college?
“Don’t give me that. I’m still paying rent on a town home and I have to heat it to 60 degrees by terms of my lease. The gas bill was 60 bucks. You’re not making your point. I went to grad school right after college. Not only did I survive without trouble on that slave wage, I went out drinking every night and still managed to save money.”
potato, potatoe . . .
http://politicalticker.blogs.cnn.com/2014/03/07/obama-tries-to-shows-some-r-e-s-p-e-c-t/?hpt=hp_t2
This is an old study but it points to criticisms of min wage hikes as an antipoverty device
http://www.epionline.org/study/r24/
BTW, this site’s research also seems to focus on NJ as one of its study markets.
Another interesting facet of this discussion.
http://www.minnpost.com/politics-policy/2014/03/how-taxpayers-subsidize-low-wage-workers
By the way, I don’t think there is anything wrong with a burger combo at a fast food joint costing $15.00.
Hell, I think I just paid that the other day in Canada.
Since I have abandoned altruism for self-interest, the only thing about the min. wage debate I care about is where to invest and how I can profit. I found this snippet informative (and it doesn’t speak well for the advocates but I don’t care)
“Since many of the most populous states, including New York, Florida and California are seeing wages rise—an area covering states that make up 42 percent of the population—the economic impact could be meaningful.
Nik Modi, consumer staples analyst at RBC, said that added income “is particularly positive for tobacco as well as energy drinks and beer.”
His top pick: Lorillard, which “generates a meaningful portion of sales and profit from New York as well as California where overall tobacco consumption is highest.”
[32] grim,
I don’t have a problem with that because it will cause a significant substitution effect. People will curb eating at fast food and casual dining joints, and spend less on other restaurants as well (due to cost and the view that tipping is simply double pay which it isn’t).
So I am looking harder at prepared foods that are substitutes for casual dining/fast food and automation plays. I also noted the RBC comment on where these dollars would be going, but I don’t want to put too much stock into that because I don’t think that this benefit will materialize. First, you have the CBO reporting that there will be significant job losses from this, and second, even the economists pushing it state that “[r]esearch suggests that a minimum-wage increase could have a small stimulative effect on the economy . . . ”
Thats a lot of sturm und drang for a possible “small” stimulative effect.
33 – capitalist pig
I’m a little concerned that the beneficiaries of a minimum wage increase will be cigarette companies and energy drinks. How does that make anyone’s life better? Go long Budweiser and Nascar I suppose.
Increasing the minimum wage might not have an effect on the people making over the amount. The 4% that will be affected by increasing the minimum wage will have a sense of accomplishment.
1. How many will not qualify to get assistance from the govt anymore
2.”Why should I work if I can not support myself or my family” mentality
Either way we are subsidizing this people already. Does the money have to come from the govt or the employer?
“When consumers step up to the counter and order one of McDonald’s “Extra Value” meals, they probably think they’re getting a good deal. Most of them never consider how much they are paying in taxes to subsidize the labor force preparing and serving those meals.
A study completed last fall by researchers at the University of California-Berkeley concluded that front-line fast-food workers earn so little that 52 percent of them are enrolled in one or more public assistance programs. The cost to the taxpayers – nearly $7 billion a year.”
30- Comrade, I’m trying to make sense of this. Obviously, it’s not such a simple concept. So according to the study, we are better off lowering the wages of the people at the bottom, for the benefit of everyone else. So basically, a certain part of the population has to take a huge hit, so that we can have lower prices? Honestly, this is so complicated that it really comes down to a philosophical argument, who do you want to screw?
I totally disagree. With my 3rd world experience,the fast food and casual dining will gain more customers from people that goes from High grade restaurants. High grade restaurants will lose customers and be forced to lower prices with their menu. Lower class people will still go to fast food and casual dining but not as often as they do now.
High grade restaurant will be a place that you want to be seen.Just like a Starbucks in a 3rd world country.You want to be seen shopping,eating in this high grade places.
Today, eating in a high grade restaurant is just a common place for us.
“I don’t have a problem with that because it will cause a significant substitution effect. People will curb eating at fast food and casual dining joints, and spend less on other restaurants as well (due to cost and the view that tipping is simply double pay which it isn’t).”
The CBO is reporting 500,000 jobs less by their former projection for 2016. They never said 500,000 people will be fired by 2016 if minimum wage is increase
39 – They seem to be pretty clear on that fact to me, have you read it?
http://www.cbo.gov/sites/default/files/cbofiles/attachments/44995-MinimumWage.pdf
Effects of the $10.10 Option on Employment and
Income. Once fully implemented in the second half of
2016, the $10.10 option would reduce total employment
by about 500,000 workers, or 0.3 percent, CBO projects.
As with any such estimates, however, the actual losses
could be smaller or larger; in CBO’s assessment, there is
about a two-thirds chance that the effect would be in the
range between a very slight reduction in employment and
a reduction in employment of 1.0 million workers (see
Table 1).
Mc Donald’s workers gets paid $14.50 an hour in Australia
If the price of a Big Mac hasn’t come across your radar over the past few weeks you probably haven’t been online or were stuck in a ridiculously long line at the drive-through. A student at the University of Kansas recently caused a stir with a study that determined McDonalds could afford to pay its U.S. employees US$15 per hour if it were to increase the price of its signature sandwich by sixty-eight cents. Dollar Menu items would cost an additional 17 cents.
The student’s study was slightly flawed, but it sparked significant debate – especially in the wake of a controversial McDonalds household budget prepared for employees that many people found to be very unrealistic. I asked some friends what they would be willing to pay, and most were willing to provide McDonalds employees with a living wage for a few more cents.
Pishposh you may say, but it’s already happening in Australia where a generous minimum wage pays many full time employees about $14.50 an hour. It’s also slated to rise even more in the near future.
The actual cost of a burger in the U.S. isn’t that much less expensive if you include all the cost. The U.S. public is paying more than the menu price due to the high percentage of fast food workers that receive government assistance through food stamps, Medicaid and other benefits. McDonalds has seen its net income increase annually over most of the past decade, yet taxpayers are left covering for its employees’ basic living expenses.
It’s also true that McDonalds is a public company with a fiduciary duty to maximize profits for its shareholders. It faces competition, which would undoubtedly benefit if it were to pass its labor costs onto customers. It may also reflexively lay people off and promote mechanization of its restaurant kitchens if wages rise dramatically.
The Atlantic’s Jordan Weissmann dug up the Australia factoids and cited the analysis of Princeton Economist Orley Ashenfelter in a report today. Ashenfelter says that there is a correlation between McWages and McPrices and yes, McDonalds would cuts its labor costs if there was a higher minimum wage.
McDonalds in Australia and Western Europe charge more for their food. The cost isn’t passed entirely onto consumers, because the company still finds ways to reduce its labor costs by relying on exceptions to minimum wage laws that allow it to pay younger workers less, introducing more lucrative menu items, using more technology in store, and giving greater responsibilities to its employees as they earn more.
It’s a very different business model than the U.S., where cheap labor is king, but McDonalds gets more revenue from Europe than from the United States, Weissmann reported. The golden arches are also very popular in Australia, which has nearly 900 locations operating down under. Higher wages don’t scare it away.
Do you think that higher wages, which would give McDonalds workers more spending power are a good idea, or would raising the minimum wage cause more trouble than its worth? We’d like to hear what you think.
Biggest shock to me out in Vancouver was when walking through a construction site, the employees seemed to be on general younger than I see here in NJ, but also a more representative of Canada’s broader racial demographics (nicest way I could say this).
CBO projects on growth. When they say 500,000 less jobs,it does not mean there will be no more hiring and 500,000 will be fired if minimum wage goes up at todays employment level. Heck, we have been losing jobs more than what we created for years now. This is 500,000 less than their projection for 2016
Theo [26];
The Reich quote said adjusted for inflation and productivity. I have no idea how to do the latter, or even if you should, but you only did half of his equation.
You pull it out of your a$$, just like Reich does.
43 – Did you read it?
‘Affluent’ . these are the fukcers against minimum wage. not only getting more affluent, but making sure the poor don’t turn into one of them
from WSJ
March 6, 2014 8:09 PM
U.S. Household Net Worth Hits Record High
Surging Stock Market and Rising Home Values Deliver Benefits, Especially for Affluent
By Neil Shah
U.S. Household Net Worth Hits Record
Americans’ wealth reached an inflation-adjusted record last year thanks to a surging stock market and rising home values, laying the groundwork for stronger economic growth. But benefits have unfolded unevenly.
Even if this what the CBO is saying, this jobs are high turnover jobs. This are low paying jobs you are losing. It is not affecting the people that makes 11 an hour. We are subsidizing this people already.
U.S. Household Net Worth Hits Record High Americans’ wealth hit its highest level ever last year, according to a Federal Reserve report released Thursday, due to a rise in the value of stocks and homes boosting the U.S. most affluent households.
As the Journal’s Neil Shah writes, the net worth of U.S. households and nonprofit organizations rose last year by almost $10 trillion to $80.7 trillion, the 14% surge being the highest on record. The value of homes, stocks and other assets, less debts and other liabilities, hit new records even after being adjusted for inflation, with much of the damage the U.S. economy sustained during the housing market crash and recession now repaired.
But the surge in wealth was still limited in its reach, increasingly leaving behind many middle- and lower-income Americans. “Wealth inequality…has increased over time,” says William Emmons, an economist at the Federal Reserve Bank of St. Louis. “So, there seems to be a disconnect: There are big wealth gains, but not much follow-through on consumer spending.”
A record rally in the U.S. stock market that pushed the broad Standard & Poor’s 500-stock index up 30% last year was the driver for most of the gains, disproportionately benefiting affluent Americans, who are more likely to own shares. The value of stocks and mutual funds owned by U.S. households rose $5.6 trillion last year, while the value of residential real estate—the biggest asset for middle-income Americans—grew about $2.3 trillion, the Fed figure
I think what we should be looking at is not the 500,000 workers that we will keep on subsidizing but how many workers getting out of poverty that will not qualify for subsidies anymore.
I will be more interested on that.
49 – You’ve now made it entirely clear that you haven’t as much as skimmed the CBO report, because those numbers are included, front and center.
On March 9, 2009, the S&P 500 plummeted to a Great Recession low of 676. Since then, the index has enjoyed a robust run — up more than 170%.
Happy Five years bull!!!!!!!!
I did not have time to read the report. But common sense tells me if, I am subsidizing 3 million people and if min wage was increase. If 2million lifts above poverty and will not qualify for subsidies and I keep subsidizing the 1 million, this is a win for me
I dont go to mcdonalds or burger king in the city as it costs too much. I can get cheaper and better burgers at white horse/kilarny rose/Pig Wistle type places.
Lots of these places either own building or have long term leases, owner and wife work for free, bartenders for tips and a few off the books guys working grill. Plus no franchise fees or advertising costs. As such they can charge less and use better meat
grim says:
March 7, 2014 at 10:06 am
By the way, I don’t think there is anything wrong with a burger combo at a fast food joint costing $15.00.
Hell, I think I just paid that the other day in Canada.
[37] michael,
I think that is reading a bit too much into it, but yes, it does come down to whom do you wish to screw.
[38] yome,
I think we are talking about different roads to the same place. Whether your 3rd world experience is translatable, I don’t know that I would agree, but ATEOTD, you should see a downtick in dining out as prices go up due to labor inputs.
[35] grim
Guilty as charged.
[53] JJ
To your point, if the cost of a burger, fries and a Coke at McD’s approaches $10, and the cost at Pig ‘n Whistle for a better burger, fries and a beer is $15, they will be the beneficiary.
If I eat at McD’s now, its because it is cheap and fast, not because it is good. Take away one of those and I’ll go to 5 Guys, spend roughly the same amount, and get a better meal (not better calorically, I will admit).
And if raising the min. wage puts an end to tipping in this country (which is the case in Australia), I am all for it.
Rachel Canning rails against spoiled ‘Suburban baby boomer types’ in Facebook rant
The spoiled New Jersey teen who took her parents to court is now taking their entire generation to task.
Rachel Canning posted a self-righteous Facebook rant Friday slamming her parents’ generation — ironically enough — as greedy and entitled.
“Suburban baby boomer types are the spoiled lot, they make massive amount of money a year, they are used to flying to luxury destinations when they want, and buy things that they don’t need, people should be inclined to see things my way,” Canning wrote in an early morning outburst on Friday.
Read more: http://www.nydailynews.com/news/national/rachel-canning-rails-spoiled-suburban-baby-boomer-types-facebook-rant-article-1.1714105#ixzz2vIqzX44l
I wrote a paper against the minimum wage when I was 20 and had no money. Performed a local survey too. Conclusions were that a minimum wage is an immoral violation of free contract, is bad for the economy, is bad for people trying to step on the first rung of the employment ladder and learn the life habits associated with work. Also, most people are emotionally bound to support this harmful law.
If 2million lifts above poverty and will not qualify for subsidies and I keep subsidizing the 1 million, this is a win for me
CBO says that raising to $10 will lift 900,000 above the poverty threshold but put 500,000 in a much worse situation (no job). I suspect that many of the 900,000, and the 500,000 that lose their job, will still require subsidies if they are the primary wage earners of a family.
#56
Something has gone awry there beyond self entitlement.
I hear Disney is vying for the rights, DVD sales of Kramer vs Kramer are in the toilet and they need something more relevant. Rumor has it Kendall Kardashian will play the lead.
Demagogues preying upon ignorant voters are the winners.
Oh wait no, that was Irreconcilable Differences.
Canning also seeks the higher of a 50 dollar minimum wage or 20 percent above her lifestyle expenses coupled with guaranteed lifetime employment. It’s the least “society” should provide her.
In return, Canning promises to consume all that is given to her, which as all experts know, is what drives the economy.
63 – She might be interested in reaching out to the fine gents over at Vivid Entertainment, they seem to always be willing to help out in these kinds of very public situations.
Nom Bingo!
Rachel Canning said in court documents that the father, who was described “inappropriately affectionate,” woke her up at 2:00 a.m. for beer pong games and force-fed her drinks.
She’s a textbook sociopath by the way, confirmed by the new claims she’s bringing up. Bet $50 they find her roommate or boyfriend dead in the next 5 years. Wonder if she’s going to start suing colleges when she gets nothing but denial letters.
I especially like the rumors posted in the links above that Inglesino slept with Canning, and his representation of her is being driven by blackmail.
NOW WE’VE GOT A SCREENPLAY
Even if I can only get 100,000 of the 900,000 off subsidies I will consider it a win
[66] WestJester
I found that claim to be bizarre. Even though it can’t be verified, it can be shot down. All you need to do is get her on the stand and either get a lot of “I don’t remember” answers, or, better yet, get her to testify to very specific details (time, day), then introduce evidence to show it could never have happened then. Credibility shattered.
As for the “inappropriately affectionate”, that is a weasel way of saying that while Dad did nothing wrong, let’s suggest that we have doubts about his state of mind.
A lot of this will out in discovery, which is a very expensive process. Little Rachel and her “sponsor” have put a lot out there that leaves them open to much discovery, and I foresee subpoenas showing up at the boyfriend’s house, and for Daddy Inglesino and his daughter. That said, if Helfand is anywhere near competent, she is fishing for a way to get her client out of this mess.
[67] grim,
Let’s put it this way:
All of her allegations are not only implausible, they are unsupported by evidence.
The family’s allegations are not only plausible, they are almost common in children with Conduct Disorder and are supported by extrinsic evidence. Every detail that comes out about her I have seen or heard about in other children, some a lot younger than her.
She’s screwed.
Mrs. Yogi Berra < Vigoda
Yo [69];
Even if I can only get 100,000 of the 900,000 off subsidies I will consider it a win
You’re quite generous spending OPM.
2
Fabius,
How did the monopolies or oligopolies in certain industries come about in a ‘legitimized’ fashion?
There’s only a couple of people on here that defend the current system. The rest who disagree with you (and Fabius, among others) just don’t like your “solutions” cause they’re anything but.
Michael says:
March 7, 2014 at 8:31 am
Damn this passage sticks a dagger into the heart of the defenders of our corrupted system.
Plus, most times you misdiagnose the cause of the symptoms you rally against.
And for my 4th post in a row, I would just like to say grim chewed yome up and spit him out, in only a matter of minutes… boy that was fun to read.
#71
It sounds about right, except it doesn’t explain why her friends parents are willing to stick their necks out. Maybe home wasn’t great, you could speculate all day about why. But the explanation for the friends parents willingness to get so involved hasn’t surfaced yet.
[78] nwnj
As for Inglesino’s motives, you got me. I have no idea. I don’t buy into the affair speculation and there is no prior history of bad blood. The best explanation I’ve heard is that he is looking for his 15 minutes of fame. IMHO, that backfired.
Getting back to RE, does it strike any of you realtors that this piece is skirting with the fair housing laws?
http://www.realtor.com/advice/neighborhood-red-flags-when-renting/?cid=%20syn_outbrain%20_0214_rss_advise-02
“Rachel Canning said in court documents that the father, who was described “inappropriately affectionate,” woke her up at 2:00 a.m. for beer pong games and force-fed her drinks.”
Has she blamed the uncle of sexual abuse yet? It’s getting closer.
[78] nwnj,
As for whether home wasn’t great, you have to ask who says so and why. I know of literally dozens of girls who could become Rachel Canning quite easily, and whose home lives are probably a lot like that. And except for the beer pong allegation, all of the facts could be undisputed but you have two wildly divergent opinions about what those facts mean.
[82] libturd,
If new allegations come up now, there will be a hue and cry over why they didn’t come up before.
Her best option is to end this quickly and quietly and hope it blows over. If this ever gets to trial, she loses even if she wins.
BTW, I don’t think Inglesino or his little brats get off scott-free either. I think his days as town attorney for Parsippany, and any other town he services, are over. And every admissions officer in the nation will look at the applications and say “Inglesino? Where have I heard that name? >google< Oh yeah, her. Denied."
On that note, I am out for today. Peace out, y'all.
Raising the minimum wage is a knock against the free market. It’s the Dems continuing to reinvigorate their base and nothing more. It’s funny. If the Yome’s, Michaels and Anon’s here were able to think for themselves, they would realize that a lot more wealth would be redistributed downward through altering unfair tax laws such as by taxing dividends at a higher rate or ratcheting AMT up to reflect inflation. Hell, it appears that the Dem playbook has no problem altering the free market for its base, but doesn’t seem to have a problem with it when it comes to rewarding their rich campaign contributors. You can’t have it both ways. Baa. Baa.
And then a couple of years from now, legally change her name (and hope no one notices/cares)
Comrade Nom Deplume, Guardian of the Realm says:
March 7, 2014 at 3:38 pm
[82] libturd,
Her best option is to end this quickly and quietly and hope it blows over.
Yup, and lower govt spending/printing (generally speaking, I’ve gone into depth several times in the past). The majority of this goes to the well connected, and guess what… the poor and middle class ain’t in that club. The true cost of govt. is what it spends, not what it taxes. And that’s just the direct cost, not indirect
Libturd at home says:
March 7, 2014 at 3:40 pm
they would realize that a lot more wealth would be redistributed downward through altering unfair tax laws
She’ll be in Penthouse/Playboy soon enough.
anon level dumb
yome says:
March 7, 2014 at 2:42 pm
Even if I can only get 100,000 of the 900,000 off subsidies I will consider it a win
Grim what you saw was the actual construction labor market free from certain criminal racketeering like tactics and without all the illegals. Capice.
grim says:
March 7, 2014 at 11:36 am
Biggest shock to me out in Vancouver was when walking through a construction site, the employees seemed to be on general younger than I see here in NJ, but also a more representative of Canada’s broader racial demographics (nicest way I could say this).
I’m surprised Canning didn’t bring up her wacky molerstation adventures earlier.
http://beta.southparkstudios.com/full-episodes/s04e16-the-wacky-molestation-adventure
Jesus, you make it sound like living on a slave wage is no problem. 25 dollars a week for food is more than enough right? How you have no trouble surviving on a slave wage is simply amazing. Honestly, it makes me think you are full of it, and never lived a day in your life trying to survive on a slave wage. You are telling me that your family didn’t help you through college? Btw, are you a lightweight when it comes to drinking? How the hell did you feed yourself and go out drinking on 25 dollars a week? Was taking a sip, considered a night out drinking for you in college?
Lol. I love how you assume the authority to tell us how poor people live after you posted how you much money you were making giving tennis lessons and how you were pretty much handed a house at age 19. Sorry, I didn’t grow up playing a rich sport like tennis. We played basketball, and my basketball was a rubber one that I got free at Pizza Hut. And no, I didn’t have help going in to college. I worked a 40 hours a week in a research lab while being a full time student.
You also have some reading comprehension problems. I said grad school. And I didn’t say I lived of $25 a week. I said I could. If you disagree, I doubt you’ve ever looked at the price of a bag of rice or a bag of beans. If you are going to try argue with someone, you should actually address their argument instead of misquoting them constantly.
Perhaps his motive has something to do with this?
From nj.com:
Inglesino’s lucrative Parsippany job on the line, pair allege ‘egregious’ ethics violations
The attorney making headlines for funding New Jersey teen Rachel Canning’s lawsuit against her own parents has another battle to fight — one that could cost him a lucrative government post if he loses.
Two Parsippany councilmen who’ve been pushing for months to oust John Inglesino from his role as township attorney stepped up their attack this week, alleging Inglesino has committed “egregious ethics rules violations” and producing a letter from their own lawyer to back up the claim.
If Mayor James Barberio — Inglesino’s closest ally in Parsippany government — doesn’t remove Inglesino from the post, or if Inglesino doesn’t step down by Monday, the council will consider a resolution kicking him out of the job, Council President Paul Carifi said in a statement dated Thursday. The statement also quotes his ally in the fight, Councilman Louis Valori.
…
Carifi and Valori said in their statement 1099 forms from Inglesino’s law firm show he’s received nearly $3 million for legal services from Parsippany since he took his post in 2010. The two councilmen and former Councilman Jonathan Nelson had fought to get copies of Inglesino’s unredacted legal bills — but were denied access, after Inglesino and Barberio said that would give them sensitive information about the township’s legal battle with Carifi’s brother, retiring police Capt. James Carifi.
“Our hard-working residents so far have been hit with almost $3 million in legal expenses which keep climbing,” Paul Carifi said in his statement. “Taxpayers have a right to know about this problematic, reckless and costly system the mayor and township attorney have in place to keep residents and the council in the dark. This wrongdoing is unacceptable and will not be tolerated.”
Nom [80];
Until I got familiar with the towns and neighborhoods where I was shopping, I uses census data for that kind of intel. A census tract is remarkably small, and the depth of demographic and economic data is impressive.
89
This. In NJ, NY and PHilly anything over three stories has to be constructed with union labor, unless the GC gets a waiver, err payoff.
Potomac Watch
The Really Big Money? Not the Kochs
Harry Reid surely must have meant the unions when he complained about buying elections.
By Kimberley A. Strassel
Harry Reid is under a lot of job-retention stress these days, so Americans might forgive him the occasional word fumble. When he recently took to the Senate floor to berate the billionaire brothers Charles and David Koch for spending “unlimited money” to “rig the system” and “buy elections,” the majority leader clearly meant to be condemning unions.
It’s an extraordinary thing, in a political age obsessed with campaign money, that nobody scrutinizes the biggest, baddest, “darkest” spenders of all: organized labor. The IRS is muzzling nonprofits; Democrats are “outing” corporate donors; Jane Mayer is probably working on part 89 of her New Yorker series on the “covert” Kochs. Yet the unions glide blissfully, unmolestedly along. This lack of oversight has led to a union world that today acts with a level of campaign-finance impunity that no other political giver—conservative outfits, corporate donors, individuals, trade groups—could even fathom.
Mr. Reid was quite agitated on the Senate floor about “unlimited money,” by which he must have been referring to the $4.4 billion that unions had spent on politics from 2005 to 2011 alone, according to this newspaper. The Center for Responsive Politics’ list of top all-time donors from 1989 to 2014 ranks Koch Industries No. 59. Above Koch were 18 unions, which collectively spent $620,873,623 more than Koch Industries ($18 million). Even factoring in undisclosed personal donations by the Koch brothers, they are a rounding error in union spending.
Mr. Reid was similarly heated over the tie-up between outside groups and politicians, by which he surely meant the unions who today openly operate as an arm of the Democratic Party. The press may despise the Kochs, but even it isn’t stupid enough to claim they are owned by the GOP. Most outside conservatives groups, including the Koch-supported Americans for Prosperity, back candidates and positions that challenge the Republican line. And in any event, every conservative 501(c)(4) is so terrified of the hay the media and regulators would make over even a hint of coordination with the GOP, they keep a scrupulous distance.
Unions, as 501(c)(5) organizations, are technically held to the same standards against coordination with political parties. Yet no Democrat or union official today even troubles to maintain that fiction. Hundreds upon hundreds of the delegates to the 2012 Democratic convention were union members. They were in the same room as party officials, plotting campaign strategies. The question therefore is how much of that $4.4 billion in union spending was at the disposal of the Democratic Party—potentially in violation of a bajillion campaign-finance rules?
As for Mr. Reid’s complaint that some “rig the system to benefit themselves,” that was undoubtedly a reference to the overt, transactional nature of union money. Nobody doubts the Kochs and many corporations support candidates who they hope will push for free-market principles. Though imagine the political outcry if David or Charles Koch openly conditioned dollars for a politician on policies to benefit Koch Industries?
In the past months alone, unions demanded an exemption to a tax under ObamaCare; the administration gave it. They demanded an end to plans to “fast track” trade deals; Mr. Reid killed it. They wanted more money for union job training; President Obama put it in his budget. Everybody understands—the press matter-of-fact reports it—that these policy giveaways are to ensure unions open their coffers to help Mr. Reid keep the Senate in November. The quid pro quo is even more explicit and self-serving at the state level, where public-sector unions elect politicians who promise to pay them more. If the CEO of Exxon tried this, the Justice Department would come knocking. The unions do it daily.
Democrats hope to make a campaign theme out of conservative “dark” money, something else Mr. Reid knows about. In addition to other spending, unions have been aggressively funneling money into their own “dark” groups. One of these is the heavyweight 501(c)(4) Patriot Majority USA. Patriot Majority doesn’t disclose its donors, though a Huffington Post investigation found it had been “fueled” in 2012 by $2.3 million in union donations. Amusingly, Patriot Majority used its undisclosed money on a campaign to expose the Koch brothers’ “front” groups. Oh, and Patriot Majority is run by Craig Varoga, a former aide and close ally of . . . Harry Reid.
The unions have had a special interest in funding attacks on conservative groups, since it has led to the IRS’s regulatory muzzling of 501(c)(4) speech. Under the new rule, conservative 501(c)(4)s are restricted in candidate support; unions can do what they want. Conservative groups are stymied in get-out-the-vote campaigns; unions can continue theirs. Conservative outfits must count up volunteer hours; not unions.
So now, in addition to a system in which organized labor spends “unlimited money” to “rig the system to benefit themselves” and “buy elections,” (to quote Mr. Reid), Mr. Obama’s IRS has made sure to shut up anyone who might compete with unions or complain about them.
Supporters of campaign-finance rules never want to acknowledge that their maze of regulations serve primarily as a tool for savvy politicians to manipulate and silence opponents. For proof, they need only listen to Mr. Reid—who is pretty savvy, and who didn’t misspeak after all.
@NewsBreaker: Chicago thrift store worker killed by gun hidden in donated clothing http://t.co/rm6pbWFOCU @FoxNews http://t.co/WVn07nj7M3
@KTLA: 19 y/o OC man allegedly shot at 17 y/o sister, left 8 y/o brother paralyzed & killed parents, OCDA says http://t.co/VQl1ZZX8j1
92
grim,
Did I read that correctly… on one side we have the mayor and the lawyer and on the other we have two councilmen. The councilmen are fighting to remove the lawyer whos racked up $3MM in fees fighting a case against one of the councilman’s brother (retiring captain).
Does anyone not work for the govt?
Unions = not payoff
Corporations = payoff
What don’t you understand?
you should be in Mercer County. Everyone either works for the county or is a state worker in Trenton.
I don’t ever eat at Taco Bell. If they doubled their prices, I might consider it.
[92] grim,
That story is well known but I see no connection to Canning, nor do I see how that helps him. There has to be more.
Rapaciousness is the name of the game
February inventory hitting new lows, contracts no longer seeing yoy gains (if there is demand, inventory just won’t support it).
February inventory hitting new lows, contracts no longer seeing yoy gains (if there is demand, inventory just won’t support it).
Another 5% increase in the asking price on my house? :)
OT ALERT.
The wife has worked in Pharma all her life. She won’t touch generics. This is just one of the reasons why.
http://www.cnbc.com/id/101476608
FWIW, recalls for generics are a lot more common than people think, especially Indian generics. And since generics don’t have to meet the same standards as brand, well, you can imagine how off this batch was in order to get recalled.
The wife has a standing order for every doctor: Write brand only. And she has a standing order for every pharmacy: dispense as written.
Prices are up…
Up 5.8% YOY on closed sales in Feb in Passaic Co.
Grim, my PSA got moderated and I have no idea why.
Cha-Ching! :) Well, no inventory + greater demand = higher price. Again, until the sea of bagholders approach sea level, this is the way it’s going to be. We’re almost 20% below peak… maybe even 15%. That’s still a lot of dough for those that don’t have it nor the stomach to bring it to the table. Couple that with the fat b@stards that demand someone turn the 2006 machine back on and we’re in for a slow slog for a looong time.
@BreakingNews: Vietnam air force finds oil slicks off coast consistent with kinds that would be left by fuel from a crashed jetliner, @AP and @WSJ report
@WSJ: 2 U.S. Senators are asking that Russia be denied from competing in the World Cup in Brazil this year: http://t.co/U6yl7Atr6u
@janisctv: Italy and Austria confirm that passports from their countries listed on #Malaysian airliner passenger manifest were stolen. #MH370
Chifi- Union or corporation, what is the difference? They follow the same principles, unite for a common goal. They all lobby. In the u.s, if you don’t lobby, you don’t eat. Lobbying is yet another system that once served a purpose for good in its early stages, but has since been corrupted.
Vigoda sighting…..
http://online.wsj.com/news/articles/SB10001424052702303824204579425204145502212?mod=ITP_newyork_4&mg=reno64-wsj
[115] chifi
Good for him. I hope he gets to look back on 100.
Technology is fun. A friend from high school was at the Bruins game tonight, sitting directly behind the bench. We had fun needling him in real time on Facebook, and even more fun needling him whenever he checked his status.
A while back, I complained about the absurd use of salt for the purpose of people being able to drive during a snow storm. Well here are the consequences.
http://www.nj.com/politics/index.ssf/2014/03/tap_water_taste_weird_thank_road_salt_and_njs_snowy_winter.html#incart_m-rpt-2
Btw, I love how they act like the effect of dropping 460,000 tons of salt will have a minimal effect of the environment. Sure buddy, I might believe 460,000 tons will have a minimal effect. You have to be an idiot to believe that.
[118] Michael
One of the first things I noticed upon moving to the midatlantic was how much salt they used down here and how the equipment was maldistibuting it. Piles at intersections from leaving broadcasters open and roads bleached white from overuse are common from NY to DC.
The wife actually commented to a town supervisor this year that it seemed the town used a lot of salt. The guy laughed and said some folks complained that the didn’t use enough.
@EpicureanDeal: Fukc winter. Fukc daylight savings time. Some conventions just deserve to be kicked to death.
@Tim_Cahill: It’s going to be a long flight back to NY. Take the loss on the chin and put it right next game. @NewYorkRedBulls #Rbny
Good stuff nom:
AMHERST, Mass. — A pre-St. Patrick’s Day celebration near the flagship campus of the University of Massachusetts spiraled out of control, pitting police in riot gear against thousands of drunken and unruly revelers at the annual “Blarney Blowout.” There were more than 70 arrests and four officers were injured in the clashes that included some students throwing beer bottles, cans and snowballs, officials said.
Amherst police said early Sunday that 73 people had been arrested after authorities spent most of the day Saturday attempting to disperse several large gathering around the UMass campus for the party traditionally held the Saturday before spring break. The partying carried through Saturday evening into early Sunday, and Amherst Police Capt. Jennifer Gundersen said in a statement that police were busy with numerous reports of fights, noise and highly intoxicated individuals.
Gundersen called the daylong partying “extremely disturbing and unsafe.”
“Perhaps one of the worst scenes we have ever had with drunkenness and unruliness,” Gundersen told The Republican in Springfield. “It is extremely upsetting. It is very dangerous.”
UMass denounced the “unruly behavior” Saturday and spokesman Ed Blaguszewski said students who were arrested will be reviewed under the school’s code of conduct and that sanctions could include suspension or expulsion.
The size and scope of the gatherings have led to violence and fights, injuries, severe alcohol intoxication, sexual assaults, excessive noise, property damage, and violence toward the police and community members, police said.
Most of the arrests came at an off-campus apartment complex, where large crowds began gathering Saturday morning for the annual event, which was started by bars to allow the students to celebrate the holiday before their spring break begins this week.
Police from the city, university and state troopers in riot gear converged on a crowd of about 4,000 people at an apartment complex shortly after noon, police said.
Authorities said there were acts of destruction of property and, as officers began to disperse the crowd, they were pelted with glass bottles, beer cans and snowballs.
After quieting the disturbance at the apartment complex, several thousand people assembled near a frat house. That gathering became dangerous and out of control, officials said, and when officers tried to clear the crowd they again faced people throwing bottles, rocks, cans and snowballs.
Police say pepper spray was used to disperse the crowd because of the size and “assaultive behavior.”
Three officers were hurt when they were hit by bottles and one was injured while attempting to make an arrest, Gundersen said. None of the injuries required serious treatment.
Police say charges ranged from inciting to riot and failing to disperse to disorderly conduct, liquor law violations and assault and battery on officers. They said early Sunday some of those arrested had been released on bail, while others were held, depending on charges.
The university had warned students earlier this week that police would have an increased presence around town Saturday, especially after several people were arrested at last year’s “Blarney Blowout.” Letters were also sent directly to students disciplined in the last year for alcohol-related misconduct.
Amherst Capt. Christopher Pronovost described the day as “mayhem” to the Daily Hampshire Gazette.
“This can’t be in any way, shape or form be characterized as a party,” he said. “This is destruction of property (and) assaultive behavior.”
Collecting bottles and cans around the scene of the mayhem Saturday night, Amherst resident Raul Colon told the Gazette that the day’s events looked like “a revolution, like in the countries that have revolutions between the students and the government.”
Gundersen said that numerous participants in the revelry were also injured.
Other colleges across the country have gone on high alert around St. Patrick’s Day to deal with alcohol-fueled students. At Penn State, the school paid licensed liquor establishments to stay closed this month during the unofficial drinking holiday known as State Patty’s Day for the second year in a row.
State College, Pa., police Chief Tom King said that the strategy, along with a fraternity ban on parties, helped lead to a 75 percent decrease in arrests and citations this year compared to 2011 — the fake holiday’s heyday.
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[124] chifi,
You are parroting the WCVB line. That’s the ABC affiliate in Boston, long known for being anti-UMass. Consider the following:
First, the parties were not on campus, just in the same town. However, anything negative that happens in Amherst is somehow linked to the University (overlooking that there are two other colleges in Amherst and two nearby whose students migrate).
The stories noted that the parties were “near” or “around” UMass but not actually on the campus. Most students live on campus.
Second, Amherst is a party mecca for out of towners. I used to be an essential services employee and got to see a lot. Often, when there were troublemakers, they were from out of town. People would go to Amherst on weekends just to find parties, thinking that the booze was free and the sex easy to come buy. Two stories that come to mind involved a group who started a large brawl (for no apparent reason I could discern) right in front of me. Police determined the perps were not students and did not live in the area; they came for the weekend to party. Another time, a guy was pestering me to find out where parties were and told me “I just got out of prison.” Plenty of other times, I met or saw people who were causing trouble or seemed like trouble and they weren’t students or from the area.
Third, the reporting never identified the arrestees as students, from UMass or elsewhere.
Finally, a policeman on scene told the press that they were being “preemptive”, which suggests that they were going to look for and break up parties. Knowing how heavy-handed APD has been in the past, its a fair bet that there was plenty of conduct that would get Joyce riled up.
BTW, this sort of thing happens at Cornell or BC. It just gets covered up. UMass can’t cover much up and certainly can’t cover up what doesn’t happen on campus.
? “This sort of thing” does not happen at Cornell…not in this manner….Cornell is really tame….too many career minded people that don’t want to blackball themselves and Ithaca is too remote to be a destination for yahoos…
Comrade Nom Deplume, Guardian of the Realm says:
March 9, 2014 at 2:28 pm
BTW, this sort of thing happens at Cornell or BC. It just gets covered up. UMass can’t cover much up and certainly can’t cover up what doesn’t happen on campus.
Do you realize tax payers are subsidizing low minimum wage workers below poverty level through food stamps etc.? If you lift 100,000 out of poverty and not be eligible for subsidies,you dont consider that a success? I will love to stay dumb,if the way you think is smart
nwnj says:
March 7, 2014 at 3:57 pm
anon level dumb
yome says:
March 7, 2014 at 2:42 pm
Even if I can only get 100,000 of the 900,000 off subsidies I will consider it a win
Too stoned in Ithaca to go batshit crazy.
Can’t go wilding with a gut full of quinoa and millet pies.
[127] chifi,
EVERY college and college town has it’s seamy sides. Even BYU according to one of my Mormon friends. Cornell’s size and remoteness help, as does the upstate winters, but if I could get a look at the Ithaca police blotters . . .