THE DON JONES INDEX…

 

GAINS POSTED in GREEN

LOSSES POSTED in RED

  12/17/14…  15,303.82

  12/10/14…  15,288.76

 6/27/13…  15,000.00

 

(THE DOW JONES INDEX: 12/17… 17,068.87; 12/10… 17,533.15; 6/27/13… 15,000.00)

 

LESSON for DECEMBER 17th, 2014

 

The chart below, tracking a century of income inequality in the United States, England and France is from Thomas Piketty’s “Capital in the 21st Century”.  We asked, last week, if there was anything that popped out to explain these numbers.

Here’s the answer…

It’s the Depression… and war.

The top 0.1% took home 4.97% of the national income in 1928 before falling back to 4.62 in 1929.  (Counting capital gains, that percentage was over 6% and even increased a bit until Black Friday before starting to fall.)  By 1931, the superrich were down to 3.60%... bounced around a bit and even recovered before Pearl Harbor’s labor shortage lowered their take to 2.40 by 1944.  Then, after the war, America overpowered its war-ravaged European competitors (note the precipitous fall of the French and British) and the top tenth of a percentage’s take remained below 2% until the 6th year of the Reagan administration.  Thereafter, it climbed from 1.87 to 3.22% in only two years, and has continued to rise no matter which party was in power.

So, is the solution to income inequality war and depression?

Piketty has another solution, and this has defenders and detractors.  We’ll take a look at it next.

Don Jones enjoyed a week of modest gains… the savings at the pump for most offsetting the plunging Dow for a few.  In fact, the experts were quick to pronounce that the falling oil prices so distressed Wall Street that a repeat of 1929 looms.  Were they right?

 

 

Top 0.1% share

 

Top 0.1% share

 (inc. cap. gains)

Top 0.1% annual income (2012 $)

 

Bot. 90% annual income (2012 $)

 

Top 0.1% avg. income (2010 eu.)

 

Top 0.1% avg .income (2010 £)

 

Top 0.1% avg. income (2010 £)

 

Top 0.1% avg. income (2012 $)

 

 

USA

USA

USA

USA

France

U.K. *

U.K. **

USA

1913

5.86

3.17

1,014,120

-

-

907,020

-

1,341,692

1914

5.87

3.57

992,899

-

-

866,173

-

1,308,792

1915

4.86

3.41

829,163

-

375,545

837,351

-

1,415,979

1916

5.46

3.41

1,014,022

-

445,886

786,365

-

1,648,673

1917

5.03

3.74

950,580

11,291

450,674

663,645

-

1,422,357

1918

4.29

4.18

768,301

10,755

370,074

622,560

-

1,085,795

1919

4.23

4.66

742,095

10,608

410,165

605,431

-

1,018,128

1920

3.70

5.07

578,327

9,676

371,929

535,268

-

755,663

1921

3.91

5.41

539,631

7,880

409,976

543,182

-

695,329

1922

4.16

5.80

647,642

8,884

440,023

644,919

-

864,467

1923

3.75

4.67

649,911

10,290

458,914

688,380

-

857,967

1924

4.13

4.20

707,003

9,709

428,984

689,501

-

945,676

1925

4.41

4.38

761,597

9,649

430,832

680,208

-

1,050,180

1926

4.53

5.12

791,307

9,771

382,885

667,853

-

1,111,360

1927

4.71

5.86

829,703

9,738

362,204

691,249

-

1,183,598

1928

4.97

6.13

892,323

9,686

382,595

705,155

-

1,324,692

1929

4.62

6.24

864,729

10,536

359,331

700,202

-

1,285,022

1930

4.01

5.37

681,354

9,665

339,702

658,755

-

978,242

1931

3.60

4.40

554,698

8,564

304,789

602,244

-

786,838

1932

3.97

4.88

514,390

6,958

291,045

573,325

-

687,618

1933

4.01

4.94

506,223

6,940

287,052

575,023

-

687,910

1934

3.90

5.86

541,275

7,608

283,775

600,634

-

727,101

1935

3.85

4.20

578,403

8,503

296,488

619,564

-

783,693

1936

4.45

5.03

734,407

9,108

300,920

654,024

-

992,557

1937

4.15

4.32

716,851

9,796

291,051

627,976

-

958,834

1938

3.49

3.69

554,750

9,062

273,960

628,576

-

737,728

1939

3.71

3.91

628,541

9,392

270,059

600,994

-

831,209

1940

3.80

3.96

674,225

9,862

202,686

500,761

-

890,152

1941

3.66

3.83

759,240

12,234

190,919

442,785

-

987,428

1942

3.16

3.27

760,680

15,551

181,930

410,949

-

971,377

1943

2.81

3.03

783,165

18,761

150,630

398,079

-

948,778

1944

2.40

2.59

661,713

18,847

116,823

388,372

-

824,531

1945

2.47

2.90

666,740

18,153

119,316

382,025

-

805,003

1946

2.52

2.92

682,353

17,734

162,221

418,043

-

837,816

1947

2.33

2.61

611,051

17,545

140,953

394,871

-

762,799

1948

2.48

2.75

662,115

17,672

140,677

369,559

-

824,794

1949

2.38

2.59

627,266

17,440

168,504

337,216

-

790,711

1950

2.70

3.17

768,870

18,797

177,205

346,265

-

903,526

1951

2.25

2.61

659,498

19,674

185,893

317,756

-

821,584

1952

2.01

2.34

607,496

20,528

192,393

285,071

-

749,572

1953

1.83

2.09

578,838

21,661

197,413

278,188

-

712,055

1954

1.86

2.32

580,165

21,168

206,625

274,834

-

720,259

1955

1.77

2.40

588,724

22,738

223,103

280,334

-

745,996

1956

1.70

2.29

596,618

23,908

232,374

264,509

-

751,880

1957

1.70

2.13

597,335

24,059

249,681

260,403

-

747,779

1958

1.65

2.14

563,413

23,177

236,574

260,346

-

704,468

1959

1.58

2.26

570,071

24,599

240,101

265,446

-

713,775

1960

1.50

2.07

549,060

25,015

263,606

294,979

-

690,610

1961

1.47

2.27

542,995

25,219

279,960

-

-

684,338

1962

1.42

2.03

545,981

26,083

283,565

290,904

 

685,387

1963

1.40

2.00

549,079

26,751

289,261

285,934

-

695,303

Top 0.1% share

 

Top 0.1% share

 (inc. cap. gains)

Top 0.1% annual income (2012 $)

 

Bot. 90% annual income (2012 $)

 

Top 0.1% avg. income (2010 eu.)

 

Top 0.1% avg .income (2010 £)

 

Top 0.1% avg. income (2010 £)

 

Top 0.1% avg. income (2012 $)

 

USA

USA

USA

USA

France

U.K. *

U.K. **

USA

 

  1963

1.40

2.00

549,079

26,751

289,261

285,934

-

695,303

   1964

1.44

2.07

592,923

28,193

305,443

302,994

-

730,829

 

1965

1.50

2.17

643,684

29,400

318,432

317,962

-

787,139

1966

1.55

2.10

695,441

30,494

327,263

284,278

-

869,177

1967

1.56

2.26

717,978

31,205

349,530

271,870

-

892,692

1968

1.56

2.41

741,674

32,257

344,432

270,941

-

915,737

1969

1.45

2.14

699,654

32,807

350,421

274,157

-

866,632

1970

1.41

1.78

683,366

33,135

361,719

256,399

-

843,783

1971

1.40

1.87

673,756

32,929

385,686

256,532

-

831,344

1972

1.40

1.95

701,087

34,360

409,483

258,582

-

866,360

1973

1.39

1.82

713,585

34,956

455,809

288,449

-

870,848

1974

1.54

1.85

768,236

33,657

429,968

289,649

-

943,525

1975

1.48

1.72

696,810

31,759

439,076

257,742

-

864,566

1976

1.46

1.73

703,391

32,621

460,992

233,559

-

877,164

1977

1.48

1.78

719,213

32,936

444,419

214,221

-

895,698

1978

1.50

1.79

744,231

33,549

459,681

220,077

-

929,276

1979

1.54

2.07

765,245

33,563

479,112

236,938

-

963,453

1980

1.58

2.13

761,052

32,413

463,265

-

-

969,478

1981

1.57

2.20

751,155

32,204

459,010

255,782

-

958,608

1982

1.68

2.44

785,909

31,324

421,983

268,193

-

1,034,361

1983

1.74

2.74

806,687

30,794

399,442

266,564

-

1,090,271

1984

1.85

2.83

887,561

31,708

399,525

285,376

-

1,222,576

1985

1.94

3.08

947,933

32,120

408,715

332,104

-

1,279,840

1986

1.87

4.05

926,091

32,394

439,016

359,901

-

1,277,691

1987

2.43

2.99

1,234,365

32,330

476,957

-

-

1,706,924

1988

3.22

3.94

1,721,770

32,788

500,955

-

-

1,910,880

1989

3.00

3.54

1,597,253

32,769

535,444

-

-

2,271,764

1990

3.07

3.49

1,624,972

32,345

539,607

-

-

2,331,403

1991

2.75

3.17

1,412,251

31,654

506,182

-

-

2,014,429

1992

3.20

3.57

1,656,077

31,174

477,935

-

-

2,430,711

1993

2.98

3.41

1,519,965

30,887

463,050

-

460,050

2,166,099

1994

2.97

3.41

1,543,797

31,371

467,073

-

463,897

2,199,112

1995

3.16

3.74

1,688,283

31,768

461,132

-

489,868

2,394,583

1996

3.36

4.18

1,836,782

32,166

471,688

-

647,661

2,622,334

1997

3.61

4.66

2,051,575

33,115

471,769

-

679,954

2,971,659

1998

3.79

5.07

2,258,602

34,493

497,354

-

752,665

3,325,330

1999

4.01

5.41

2,483,675

35,509

527,544

-

775,161

3,701,358

2000

4.29

5.80

2,699,591

35,799

552,560

-

842,337

4,038,060

2001

3.86

4.67

2,371,977

35,500

584,639

-

821,522

3,462,103

2002

3.63

4.20

2,147,943

34,067

597,207

-

767,500

3,157,193

2003

3.67

4.38

2,140,050

33,368

601,774

-

750,952

3,205,178

2004

4.04

5.12

2,415,956

33,744

619,407

-

858,306

3,720,932

2005

4.47

5.86

2,736,684

33,688

649,112

-

1,027,389

4,273,522

2006

4.60

6.13

2,863,201

33,961

712,374

-

1,126,318

4,440,422

2007

4.63

6.24

2,968,045

34,816

-

-

1,241,888

4,706,390

2008

4.44

5.37

2,698,228

32,817

-

-

-

4,271,982

2009

3.97

4.40

2,271,194

31,166

-

-

1,330,111

3,620,594

2010

4.21

4.88

2,417,857

30,840

-

-

931,151

3,888,576

2011

4.22

4.94

2,408,908

30,458

-

-

922,433

3,790,049

2012

4.74

5.86

2,782,302

30,439

-

-

-

 

 

THE DON JONES INDEX

 

CHART of CATEGORIES w/ VALUE ADDED to EQUAL BASELINE of 15,000.00

(REFLECTING… approximately… DOW JONES INDEX of June 27, 2013)

See a further explanation of categories here…

Simply recording gains or losses is deceptive, because some of the indices here represent GOOD things (like incomes and life expectancy) while others represent BAD things (unemployment, terror).  So, increases in good things and decreases in bad things are considered GOOD (and are depicted in GREEN) – decreases in good things and increases in the bad are considered BAD (and are depicted in RED).

The sum of good things, less the sum of bad things, equals the week’s gain (or loss) to Don Jones.

 

 

ECONOMIC FACTORS (60%)

 

DON JONES PERSONAL ECONOMIC INDEX  (45% of TOTAL INDEX POINTS)

 

 

INCOME

(24%)

BASE

6/27/13

              RECKONINGS

   LAST    CHANGE   NEXT

DON

12/10/14

DON

12/17/14

OUR SOURCE(S) and COMMENTS

Wages (hourly, p/c.)

10%

1500 points

12/3/14          nd        12/24/14

1516.89

1516.89

 http://www.tradingeconomics.com/united-states/wages   10.34 nd

Median Income (dc)

4%

600

12/17/14      +0.04%   12/24/14

607.15

607.38

http://www.usdebtclock.org/   28,600 611

 

Unemployment

4%

600

12/3/14          nd     December

806.27

806.27

http://data.bls.gov/timeseries/LNS14000000    5.8 nd

 

         Official #mil.

2%

300

12/17/14      -0.39%    12/24/14

376.66

378.12

http://www.usdebtclock.org/       9.095 060

 

     Unofficial #mil.

2%

300

12/17/14      -0.28%    12/24/14

388.67

389.76

http://www.usdebtclock.org/       17.807 757

 

Workforce Participation

       Number

       Percentage

2%

300

12/17/14                       12/24/14

                   +0.04%   

                    -0.03%

295.03

294.89

Americans in/not in workforce (mil.)

In: 147.371 423 Out:  92.481 503 Total: 239,972

http://www.usdebtclock.org/   %  61.49

 

 

 

OUTGO

15%

 

 

 

 

 

Total Inflation

9%

1350

12/17/14        -0.30            12/24/14

1318.08

1322.03

http://www.bls.gov/news.release/cpi.nr0.htm      0.0  -0.3

Food*

2%

300

12/17/14       +0.20      12/24/14

288.63

288.05

http://www.bls.gov/news.release/cpi.nr0.htm    +0.1 +0.2

Gas

2%

300

12/17/14        -6.60      12/24/14

316.81

337.72

http://www.bls.gov/news.release/cpi.nr0.htm    -3.0 -6.6

 

Medical Costs

2%

300

12/17/14       +0.40      12/24/14

291.71

290.54

http://www.bls.gov/news.release/cpi.nr0.htm    +0.2 +0.4

WEALTH

6%

 

 

 

 

 

Dow Jones

 2%

300

12/17/14        -2.65%      12/24/14

325.63

317.01

Dow Jones index    17,068.87

Home Sales

Home Valuations

 

 1%

 1%

150

150

12/17/14  sales +1.74%    12/24/14

12/17/14  price -0.62%     12/24/14

187.97

193.65

187.97

193.65

http://www.realtor.org/topics/existing-home-sales 5.26 nd

http://www.realtor.org/research-and-statistics   208.3

Debt (Personal)

2%

300

12/17/14        +0.13%     12/24/14

284.75

284.38

http://www.usdebtclock.org/   52,242 310

 

UNITED STATES ECONOMIC INDEX  (15% of TOTAL INDEX POINTS)

 

NATIONAL

 

Revenues (trillions.)

10%

 

2%

 

 

300

 

 

12/17/14       +0.19%     12/24/14

 

 

345.82

 

 

 

345.82

 

http://www.usdebtclock.org/        3.078  084

Expenditures (tl.)

2%

300

12/17/14       +0.17%     12/24/14

293.39

 

292.90

http://www.usdebtclock.org/        3.558 564

U.S. Natl. Debt (tl.)

3%

450

12/17/14       +0.03%     12/24/14

415.93

 

415.79

http://www.usdebtclock.org/      18.010 016

Total Debt* (tl.)

3%

450

12/17/14       -0.33%     12/24/14

446.19

 

447.66

http://www.usdebtclock.org/      59.482 59.285

*   U.S. Total Debt includes household, business, state and local government, financial institutions and the Federal Government  (source – Federal Reserve)

 

 

      GLOBAL                    5%

 

 

Foreign Debt (tril.)

 

2%

 

 

300

 

12/17/14     +0.03%    12/24/14

 

320.23

 

 

   320.12

 

 

http://www.usdebtclock.org/       6.042 6.044

 

Exports (bl.)

1%

150

12/17/14        nc          12/24/14

159.53

   159.53

http://www.census.gov/foreign-trade/statistics/highlights/congressional.html   197.5 nc

Imports (bl.)

1%

150

12/17/14        nc          12/24/14

140.51

   140.51

http://www.census.gov/foreign-trade/statistics/highlights/congressional.html  241.0

Trade Deficit (bl.)

1%

150

12/17/14        nc          12/24/14

148.02

   148.02

http://www.census.gov/foreign-trade/statistics/highlights/congressional.html   43.4

SOCIAL FACTORS (40%)

 

 

LIBERTY and SECURITY INDEX           (15%)

 

 

      ACTS of MAN

       9%

World Peace

3%

450

12/17/14

 -0.3%

12/24/14

412.23

410.99

The upside – pressured by the Pope, America finally decides to recognize Cuba.  The down?  Castro’s old patrons are broke and looking to distract their people by…. War?

 

Terrorism

2%

300

12/17/14

+0.7%

12/24/14

274.48

274.48

Massacres in Pakistan and Australia… could the CIA torture papers be to blame?

 

Freedom

2%

300

12/17/14

+0.2%

12/24/14

294.98

295.57

Finally… it’s legal to smoke Cuban cigars.  But just when it seems to be illegal to smoke or even possess tobacco anywhere.

 

Corruption

1%

150

12/17/14

nc

12/24/14

166.06

166.06

SONY hacking proves a mixed blessing… bad for the actors and executives caught at their worst, a bonanza for the tabloids.

 

Crime Rates

1%

150

2013

+0.1%

unknown

148.80

148.65

The race “riots” over, it’s back to ordinary, extraordinary Christmas crime – crooks driving stolen trucks through store windows, bad guys trailing FedEx and UPS trucks and scarfing up presents.

 

 

 

 

     ACTS of GOD

       6%

      (with, in some cases, a little… or lots of… help from men, and a few women)

 

Environment

3%

450

12/17/14

+0.1%

12/24/14

431.28

431.71

After a few violent weeks, relative calm returns to the weather.

 

Natural Disasters      

3%

450

12/17/14

+0.1%

12/24/14

395.70

395.10

Giant fire destroys L.A. city block under construction… but is it really natural, or the work of arsonists with unknown motives?

 

 

LIFESTYLE and JUSTICE INDEX        (13%) 

 

 

Education      

 

4%

 

600

 

12/3/14

 

nc

 

As arises

 

593.41

 

593.41

 

School’s out for the holidays.  Good for the kids… maybe not so good for the parents.

 

Equality

4%

600

9/10/13

nd

As arises

710.13

710.13

IEEconomics calls US wage growth third worst in the world. http://stats.oecd.org/Index.aspx?DataSetCode=IDD  .038 nd

 

Health (Life Exp.)

2%

300

12/17/14

+0.5%

As manifest

292.24

293.70

A bunch of doctors say that life expectancy in the U.S. is up by six years.  Don’t say where, how or when… but it’s good news we’ll take.

 

Health (Other)

2%

300

       12/3/14

+0.2%

  As manifest

292.85

292.26

Coming down the chimney just in time for the holidays… that flu without a name which vaccines seem to be useless against

 

Justice

1%

150

12/17/14

nc

unknown

152.89

152.89

Politicians and judges are taking the rest of the year off.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MISCELLANEOUS and TRANSIENT INDEX        (13%)

 

All transient incidents

10%

1000

12/17/14

-0.2%

12/24/14

972.38

972.38

Aside from the suspected North Korean SONY hacks, Don Jones more likely to be worried if someone is stealing his identity through Staples

Misc. cultural foibles      

3%

300

12/17/14

+0.1%

12/24/14

299.39

299.69

  Damn the troubles, it’s Christmas.  Gas up the tank and go visit grandma.

                

 

 

SUMMARY:

The Don Jones Index for the week of December 10th through December 17th was UP 15.06 points.

The Don Jones Index is sponsored by the Coalition for a New Consensus: retired Congressman and Independent Presidential candidate Jack “Catfish” Parnell, Chairman; Brian Doohan, Administrator/Editor.  The CNC denies, emphatically, allegations that the organization, as well as any of its officers (including former Congressman Parnell, environmentalist/America Firster Austin Tillerman and cosmetics CEO Rayna Finch) and references to Parnell’s works, “Entropy and Renaissance” and “The Coming Kill-Off” are fictitious or mere pawns in the web-serial “Black Helicopters” – and promise swift, effective legal action against app parties promulgating this and/or other such slanders.

 

Comments, complaints, donations (especially SUPERPAC donations) welcome at: feedme@generisis.com