Delaware Economic Update 2020 Q3 Economy coming back but slowly   By  Dr. John Stapleford Date: 12/9/2020 OUTLOOK According to the forecasters’ survey of the Philadelphia Federal Reserve, Delaware's RGP will grow 19.1% in 2020 Q3 and 5.8% in 2020 Q4, for a 2020 average of -5.2%. The year 2021 is expected to register an average growth rate of around 3.5%. Having weathered the downsizing of its chemical industry,  Delaware's RGP is expected to track with the nation, but with mo

Wall Street Journal exposé challenges Bloom Energy, stock fall 11% By David T. Stevenson Center for Energy & Environmental Policy December 9, 2020 Yesterday, The Wall Street Journal (WSJ) released an  exposé  on Bloom Energy, Inc. (Bloom). The critical report discusses how Bloom has lost its green energy edge. More people discover its actual carbon dioxide emissions roughly match the "regional grid."    For example, Delmarva Power's Red Lion location has "Bloom" servers that

Location driven by income tax rates By  Dr. John Stapleford Center for Economic Policy and Analysis December 1, 2020 Delaware is projected to collect $1.7 billion of personal income tax revenue in FY 21.   Research evidences that, over time, states with an income tax lose population to states without an income tax. Many retirees choose Florida, Texas, and Nevada precisely because there is no income tax. According to DEFAC, Delaware is facing two fiscal years of flat General F

The latest interstate migration data from the IRS for Delaware (2009-10) confirms once again that households vote with their feet. Statewide, Delaware had a net gain of households from the surrounding higher property tax states, bringing a net gain in personal income as well. The leading contributing states to Delaware in terms of net Adjusted Gross Income (AGI) between 2009-10 were: New Jersey (plus $44 million of net AGI into Delaware), Maryland ($42 million), Pennsylvania

Delaware Piles on the Regulations By  Dr. John Stapleford Center for Economic Policy and Analysis By definition, government-imposed regulations are limits to individual and business freedoms. Some regulations are necessary, such as speed limits and mandatory auto insurance. Others are unnecessary, obsolete, or the result of administrative overreach. They should be tossed.   It is widely recognized that more regulations in an economy lead to lower economic growth. Data from th

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Don't wager on Delaware's economy By  Dr. John Stapleford Center for Economic Policy and Analysis The U.S. Bureau of Labor Statistics compiles data on employment, wages, and establishments by industry for each state. The wage data for Delaware tells a dismal story.   Over the past ten years (2009-2019), total private industry wages in Delaware rose 40% compared to 55% across the U.S. The jobs generated in Delaware were disproportionately in lower-wage service industries.   To

By  Dr. John Stapleford Center for Economic Policy and Analysis October 31, 2020   Delaware state government is facing two years of flat general tax revenue. If instituting a state sales tax becomes a legislative issue, retailers may suffer substantial non-resident sales losses.   Pros vs. Cons of a sales tax? The biggest "pro" for a sales tax means that Delaware government revenues will grow at pace with inflation and the economy.   The biggest "con" is that lower-income fam

By  David T. Stevenson October 22, 2020   Delaware’s beach economy is reeling from the impact of government-imposed lockdowns to flatten the curve of new infections and hospitalizations from COVID-19.  The Rehoboth/Dewey Chamber of Commerce estimated in July, resort area hotel revenue was down 35% to 50%, and restaurants were down 75%. Just 76 respondents of the 1,200 members surveyed by the Chamber estimated a revenue loss of over $200 million.    At $3 billion a year, beach

By  Dr. John Stapleford October 20, 2020   The  U.S. Bureau of Labor Statistics  (BLS) had released the " Employment Data " report by major industry through August 2020.   It clearly shows that Delaware’s economy will not have a healthy recovery growth rate unless  PHASE 3  gets introduced.   Additionally, the data points out that DE's government (state, local, federal) has been less affected than DE's leisure and hospitality (restaurants) industries.   "Delaware Total Employ