Number Of North Dakota Millionaires Jumps -- November 11, 2015

The Bakken Economy

Data points from The Washington Times:

• the number of North Dakotans reporting 7-figure incomes has more than doubled since 2010
• 2014: 1,120 North Dakotans with AGI of more than $1 million
• 2013: 1,014 North Dakotans with AGI of more than $1 million

Number of state tax returns:

• 2014: 486,311
• 2013: 466,256
• an increase of 4%

North Dakota's average AGI:

• 2014: a record $73,359
• 2013: $71,538

2012 nationwide AGI data:

• income split, 50% above, 50% below:  $36,000
• income split, 25% above, 75% below: $73,000
• income split, 10% above, 90% below: $125,000

2011 nationwide AGI data:

• income split, 50% above, 50% below:  $35,000
• income split, 25% above, 75% below: $70,000
• income split, 10% above, 90% below: $120,000

From wiki:

• the overall median personal income for all individuals over the age of 18 was $24,062 ($32,140 for those age 25 or above) in the year 2005
• the overall median income for all 155 million persons over the age of 15 who worked with earnings in 2005 was $28,567

Memo to self: send note to Jane Nielson.

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Speaking of Growth

A lead story over at Finance!Yahoo right now is about the growth prospects of Facebook. Just a few weeks ago I suggested:

Amazon and/or Facebook will get into the flight reservation business (one or the other will buy Travelocity, Orbitz, or start fresh). October 23, 2015. Three stories converge: Amazon reports surprise profit 3Q15; Facebook introduces universal search across entire social network; and, airlines try to win customer loyalty by keeping fliers informed. 

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Minimum Wage

There's a lot of talk about minimum wage right now. I don't have a dog in that fight. I used to be really, really against a minimum wage mandated by the "state" but it no longer worries me. The free market economy will manage it just well.

I think for me, personally, it's likely the $15 minimum wage will be good for me.

As I understand it, the $15 minimum wage will pretty much only effect the service industry, such as fast food restaurants and motels/hotels. There are a lot of jobs being done in California by undocumented workers, but that's another story.

We don't eat out that much and when we do, the overall bill won't increase all that much due to the minimum wage. But one can expect that the employer will be much more selective in the individuals hired when paying them high wages. Might the employer hire fewer workers and thus delay / slow down service? Not to worry. Free market capitalism and technology will take care of that concern. In fact, a $15 minimum wage is likely to hasten better technology in fast food restaurants. Applebee's is adopting.

When we go to a more upscale restaurant, my wife is a very generous tipper. Fifteen percent is the floor and my wife generally leaves 20 - 30 percent. Her mom was a waitress.  The extra price of the meal due to a mandated $15 minimum wage won't have much effect on our total expense, but it will most likely mean a happier server and kitchen staff.

We also don't stay in hotels/motels very often, but my hunch is that the increase in minimum wage will have minimal effect on those rates, though room rate increases will be blamed on the minimum wage. And again, we always leave a room tip for the "maid" upon leaving; again overall price won't affect us much.

I'm not worried that the minimum wage will set a floor or lead to inflation or will mean that future welders will decide to become "maids" or waiters instead. The big concern for almost everyone right now is deflation, not inflation. Those on government pensions and/or social security have probably noticed no annual increases lately.

Should I be worried about whether it's "right or wrong" in a free market economy to mandate a minimum wage? That's not the question; it's already mandated. The question is simply how much.

Again, this is another non-issue that the GOP would be well advised to ignore. Will an increase in the minimum wage affect jobs? Probably. But does that really affect anyone voting for Donald Trump or Carly Fiorina or Ben Carson or Jeb Bush? I doubt it. When a politician asked whether he/she supports a $15 minimum wage, he/she should simply say he/she is going to work for more jobs with better pay. If $15 / hour gets us there, great.