From Adam Smith forward, the one major insight on which all economists can agree is “competition is good!” More effectively than government regulations or price ceilings or user permits, competition results in, as if by an “invisible hand”, lower prices and lower costs (more efficient production).   Is there sufficient competition in Delaware’s healthcare industry? Or are consumers being over charged and undersupplied?   Following is a simple analysis of Delaware’s major heal

With the economic recovery underway in Delaware projected state government revenues are running ahead of projected expenditures for this fiscal year (FY 2011) and next (FY 2012). At this time, according to DEFAC, the expected surplus will be $156 million for FY-11 and another $218 million for FY-12. Naturally everyone in Dover has ideas for spending these surpluses, including the Governor.   The major sources of increased revenue are tied to the economic recovery. Almost 75%

Delaware’s insurance commissioner has requested a waiver of the Federal rule requiring health insurers to spend 80 percent of each premium dollar on medical care. This is the wrong waiver. If Delaware would simply open itself to health insurance competition the terms of the balance between company costs and medical payouts would be dictated by consumers.   A more important waiver for Delaware to be seeking at this time is from the Federal Medicaid rules. Rhode Island has led

CEPA estimates the population of undocumented immigrants in Delaware to be 20,250 as of 2008. This includes 14,880 undocumented immigrants in New Castle County, 2,225 in Kent County and 3,150 in Sussex. These estimates are derived from the latest Bureau of Census data on the foreign born population for Delaware and the counties. Based upon research by the Urban Institute, 26% of the foreign born population is considered to be undocumented immigrants. That number is then adjus

The national base realignment and closure program (BRAC) is transforming the Aberdeen Proving Ground into a major center for high tech research and development. Employment at Aberdeen will hit about 22,000 by late 2011. The bulk of these employees will be civilians in occupations such as computer science, IT, engineering, physics, chemistry, and mathematics. Will Delaware benefit from the Aberdeen explosion? The BRAC effect Will the tremendous expansion at the Aberdeen Provin

The mantra of President Obama is to raise taxes on the rich rather than cut the size of government. In Delaware, the governor, supported by the legislature, has already done this. Effective January 1, 2010 the top marginal tax rate applied to personal income of $60,000 or more was raised from almost 6% to almost 7%, and there have been no significant cuts in state government. What are the assumptions behind this thinking? If no significant cuts in the size of government are m

Are union rates over represented in determining Delaware’s prevailing wage rates? Is there alternative Federal data that would more accurately represent construction-market wage rates in Delaware? Would this save the Delaware Department of Labor (DDoL) the expense of compiling and generating annual prevailing wage rates? This report examines and answers these questions, and suggests a more efficient determination of Delaware’s prevailing wage rates. Normal.dotm 0 0 1 65 376 C

The Caesar Rodney Institutes Center for Economic Policy and Analysis has updated its 2010 comprehensive report on the methodology used by the Delaware Department of Labor (DDOL) in the calculation of the states prevailing wage and the methodology continues to be seriously flawed and tilted toward the union construction wage rates. The prevailing wage rate schedule published annually by the DDOL for all three counties must be followed for any capital project receiving state fu

The recently passed health care reform bill not fix health care. It intends to fix the insolvent governments bankrupt insurance products, Medicare and Medicaid, but probably wont do that either. It does raise taxes on everyone who pays taxes, currently 53% of the citizen population. It will not increase access to actual health care for anyone. It will ration delivery of health care, first to Medicare and Medicaid recipients, then in 8 years to everyone. It needs to be repeale

Under Governor Markell the Delaware Economic Development Strategic Fund has gone wild. Annual loans and grants from the Fund are up almost three fold. Why the flurry of activity? Will it pay off?   The reason for the flurry of activity is straightforward. Delaware currently has a 67,000 job gap to regain the ground that has been lost is the past four years. This includes: an additional 32,000 jobs to climb back to the peak level of total employment, 20,000 jobs to regain the