NFL Income Inequality: It Just Keeps Getting Worse

According to a new report from the Census Bureau, the top 20% of American households earned 50.3% of the total income in 2009, just slightly higher than the 50% share of income for the top fifth of households in 2008. Looking at a longer period of time going back to 1967 when the top quintile earned 43.6% of all income, the share of income going to the top fifth increased throughout the 1970 and 1980s, until stabilizing in the 49-50 percent range in the mid-1990s.
Using NFL salary data from USA Today, the shares of total team payrolls going to the highest-paid  20% of players in 2000 and 2009 are displayed in the chart above for all 32 teams. The average share of NFL payrolls going to the highest-paid 20% of players in 2009 was 62.4%, higher than the 59.5% share in 2008, and much higher than the 56.3 percent in 2000.  Between 2000 and 2009, income inequality increased for 27 of the 31 teams that played in both years. 
For the second year in a row, the Indiana Colts led the league in income inequality, with just two players (Kelvin Hayden at $17.5 million and Peyton Manning at $14 million) capturing more than 30% of the total team payroll of $103.4 million in 2009. Top-paid Kelvin Hayden's salary was a whopping 56.4 times more than his lowest-paid teammate, Rudolph Hardie, who made the NFL minimum of $310,000. That would mean that Kelvin Hayden was paid almost as much for each quarter of regular-season play ($273,125) as Rudoph Hardie made for the entire season. (How can that be fair?)
In other words, there is significantly greater income inequality in the NFL than in the general U.S. population, with 62.4% share of team payrolls going to the top fifth of NFL players in 2009, compared to 50.3% of total national income going to the top quintile of American households. And while the share of income going to the top 20% of U.S. households has been constant for more than a decade, payroll inequality in the NFL keeps increasing each year.
What are some of the lessons we can learn from the escalating income inequality in the NFL?

Find out here at The Enterprise Blog.

SPENDING INCOME RISE IN AUGUST, PROPOSING A LOWER RISK OF RECESSION

Today's expenditure and revenue report for August is no silver bullet, but it suggests that the risk of recession and deflation has fallen for the near future. Economy, in other words, stronger than it appeared during the summer.

Disposable personal income (DPI) increased a healthy 0.5% in August vs. July, U.S. Bureau of economic analysis of the reports. It is the best profit since April, when the prospects for the economy, while still well short of stellar, was much lighter than it was during the last few months.In the meantime been private consumption expenditures (PCE) 0.4% in August, matching Julius pace. it is the highest since the 0.5% in March.

In short, the expenditure and income have grown from the summer slowdown. Economy continues to be harassed with any number of challenges, but it is quite a bit tougher to argue that deflation and depression lurks around the corner after reading today's numbers. Everything is possible, of course, but the August updates specifies no deterioration in consumer spending and income.

Sceptics are quick to point out that the monthly figures can be misleading and so we must also consider the broader trend. True, but there is encouraging news here, albeit with a warning. Let us begin by looking at the rolling 12-month percentage change in DPI and PST, as shown in the diagram below.

Income remains in positive territory on a year over year (black line); rate of increase for DPI has in fact increased in recent months. But consumption has slowed (red line). For August increased PST approximately 2.7% compared with the previous year. It is close to the minimum 12 month rate this year.

Slower consumption is not surprising. Household balance sheets is still loaded with debt and working through the red color will take time and (probably) higher levels of savings.We make some of that in the various reports of late. Surprises are whether the savings continue to rise and, if so, how much damage the trend fuelled spending? it is a subject that bears watching, and given the current climate, there is reason to be cautious.However, currently propose at least, August numbers don't a dramatic decline in consumer spending growth Remains; sluggish? Or drop sharply in the coming months? Stay tuned.

In the meantime, let us not forget that the pace of growth in expenditure and revenue of late, although it does smooth, well below the rate of growth posted in before the large heating. The economy has recovered, but the lingering effects for 2008 and 2009 is still with us.

Fortunately, there is no indication that growth in private sector wages are injured.Yes, we are still lower than the rates published in 2005 and 2006, when the economy firing on all cylinders.But it is clear that there is an acceleration of progress in 2010.In fact, private sector wage bill payments advanced 0.5 percent last month, matching Julius pace.It is close to the strongest monthly rate in more than one year, And on an annual basis, private-salary increases continue to inch higher.During the 12 months by August 2010 increased pay 2%, the highest level since before the great warming in 2007, as in the second chart below.

All these things tell us that everything is good? no, of course, not all major challenges in the months and years to come are still waiting begins with the problems associated with sluggish growth in the labour market, But too late, the urgent question been worrying about a new recession. today's report on consumption and income provides reasons for increasing optimism a notch or two to expect us to escape this fate.

The acute risk seems it drops. "that's good news, but not to celebrate too long. The chronic diseases are still with us and require attention.

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Thanks for Paying Your Federal Income Taxes, Heres Your Itemized Taxpayer Receipt

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You Are Here: Home > Articles > Economy > Thanks for Paying Your Federal Income Taxes,... From the policy paper "A Taxpayer Receipt" from a D.C.-based policy group called "The Third Way":
"Corn syrup, milk chocolate, sugar, cocoa butter, coconut, almond, soy lecithin any consumer can read these ingredients and their nutritional value on every package of a75-cent Almond Joy. What is provided to a taxpayer with a $5,400 tax bill? Nothing. For many Americans, the amount they pay in taxes is larger than any purchase they make during the year, but studies show they know almost nothing about where that money goes.
An electorate unschooled in basic budget facts is a major obstacle to controlling the nation's deficit, not to mention addressing a host of economic and social problems. We suggest that everyone who files a tax return receive a taxpayer receipt. This receipt would tell them to the penny what their taxes paid for based on the amount they paid in federal income taxes and FICA."
MP: See the example above of an itemized tax receipt for the median tax filer in 2009 making an adjusted gross income of $34,140, and paying $2,790 in federal taxes, and $2,610 in Social Security and Medicare "contributions," for a total federal tax bill of $5,400. 
And here's a slightly different version of an interactive itemized tax receipt calculator at a website called "Where My Money Goes," which allows you to put in any income amount and see an itemized tax receipt (thanks to Alex Rodriguez for this website).

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