A DE Recession? | 3/24/2020

What will be the impact of the Covid-19 virus on Delaware's economy?   There are two extreme views among economists regarding the U.S. economy. The first view anticipates a substantial recession similar to 2008-09. The second expects a severe dip in the second quarter of 2020 with a...

DE School Choice | 2/5/2020

According to the Wall Street Journal, Republican Ron DeSantis owes his gubernatorial victory in Florida to the support of about 100,000 African American women who were advocates for school choice. Of the roughly 650,000 black women who voted in the Florida election, 18% chose Mr. DeSantis. Could thi...

Development by the Numbers | 2/5/2020

If the objective of Delaware’s economic development efforts is jobs, the available data may provide a logic for allocating development resources.   Over any particular year, the net change in employment comes from business start-up and expansion minus business closures and contrac...

A Gross Tax | 1/25/2020

Delaware is one of just five states that levies a gross receipts tax (GRT). A GRT is an excise tax on the gross revenues of a company regardless of whether that company has profits or losses.   Public finance economists view the GRT as inefficient and unsound. It double or triple taxes bu...

Is Delaware losing its Spring? | 1/19/2020

According to the leading index calculated by the Philadelphia Federal Reserve Bank, Delaware can expect a contraction in the state’s economy in the second quarter of 2020. Is there any reason for concern?   Each month the Phila Fed estimates leading indexes for all the states and th...

The Sinkhole in the NCC Economy | 1/15/2020

It took New Castle County (NCC) until 2015 for employment to return to the high water mark hit in 2007. Since 2015 the NCC employment has only inched forward at 0.6% per annum. And the Delaware Department of Labor projects this modest growth rate to continue through 2026.   To his credit ...

A Research and Data Perspective on Delaware’s Minimum Wage | 1/5/2020

State Senator Darius Brown has proposed additional minimum wage increases on top of the increase from the last legislative session. These proposed increases are substantial, raising the Delaware minimum wage from $9.25 to $11.00 in 2020 and then adding $1.00 every year after until a $15.00 minimum w...

Delaware Productivity | 1/5/2020

Productivity is typically measured as the amount of output (the market value) of the goods or services each worker in an industry produces over a year.   Based upon output per worker or productivity, one can identify which industries will pay high wages and maintain competitive prices. Ob...

Delaware and High-Tech Innovation | 12/15/2019

In its recent report on “Growth Centers” the Brooking Institute declares that “the future of America’s economy lies in its high-tech innovation sector.”   Brookings identifies a cohort of 13 innovation industries where R&D expenditures exceed $20,000 per ...

The View from Pew | 12/5/2019

The Pew Center Trust has recently updated its information website on the fiscal health of states. It confirms much of what is known about the State of Delaware’s finances.   On the positive side, as of 2018 Delaware state government could run 20.5 days on rainy day funds if tax reve...