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Economy Hums and Mining Rebounds Up North

According to a post in the Duluth News Tribune, iron mining firms have rebounded from the slump they experienced a few years ago and the economy in Minnesota is humming along. Just think what the economy would look like up there if Minnesota were to capitalize its vast copper, nickel, platinum group element, and titanium deposits, which would add $3.7 billion in annual economic activity, create more than 1,900 mining jobs and support 6,566 indirect and induced jobs, with total wages of $635 million, and generate nearly $198 million in tax dollars for state and local governments. Story from the Tribune is below. Iron...

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In the first quarter of 2018, Minnesota’s economic growth lagged that of the nation

Data released today by the Bureau of Economic Analysis shows that Minnesota's economic growth lagged that of the United States as a whole in the first three months of the year. While the United States grew at a rate of 1.8%, Minnesota's GDP grew at 1.6%. This marked the third straight quarter, and the fourth out of the last five, in which our state's economy has grown at a slower rate than that of the United States. Minnesota's growth rate ranked it 26th among the states and the District of Columbia. ...

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In the 1980s, Minnesota cut its top rate of income tax by 8 percentage points. What happened to income tax revenues?

State income tax receipts were higher both in dollar terms and as a share of Minnesota's GDP when the top rate of income tax was 9% than when it was 17%. On this evidence, reducing tax rates will neither 'starve the beast', as some on the political right hope, nor lead us back to a Dickensian dark age, as some on the political left fear. ...

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Mrs. Greene Goes to Washington: Trump Administration to Roll Back the Dayton-Smith-DFL Union Dues Skimming Scheme

To be clear, if the Obama rule is fixed, the unions that have been certified would unfortunately continue until they are decertified—that is why MNPCA is not giving up in Minnesota. Decertification is the only way to get rid of these predatory unions; that and a declaration from Congress that they are illegal. But the state of Minnesota could no longer deduct union dues for the SEIU and deposit it in their coffers. ...

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Prevailing wage laws freeze less skilled workers out of labor markets, just like minimum wage laws

The employment-participation rate for 16- to 19-year-olds in Minnesota fell from 69.8 percent in 2000 to 52.3 percent in 2016, a decline of 17.5 percentage points. Unemployment rates for black and Hispanic workers in Minnesota continue to be above those for whites. To a large extent, these are the results of policy decisions, such as prevailing and minimum wage laws. Politicians should stop scratching their heads wondering where these problems come from, and act to solve them. ...

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Why Automation Sometimes Races But More Often Chugs

Jobs Lost, Jobs Gained: Workforce Transitions in a Time of Automation is a study by McKinsey & Company, released in 2017, that examines work around the world “that can be automated through 2030 and jobs that may be created in the same period." McKinsey’s “scenarios” suggest that by 2030, somewhere between 75 million to 375 million workers, which will be three to 14 percent of the worldwide workforce, will “need to switch occupational categories.”...

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