Dry, Dry Dry
Another dry and smoky day. We hover in the high 80s and already have had our first 90-degree day. But it remains cool in the early morning and humidity has not yet been oppressive. But soon.
Looking at the National Weather Service I see that we had a cool April with really warm weather only the last week of the month. We had some really cold weather in the middle of the month that brought down the monthly average. But our average temp over the last year remains above average. And dry. Rainfall is 70% below average for 2007 so far — half a foot deficit after just 4 months. NWS offers a cheery summer forecast:
SEASONAL OUTLOOK… THE OFFICIAL FORECAST FOR THE MONTHS OF MAY THROUGH JULY CALLS FOR A GREATER CHANGE OF ABOVE NORMAL TEMPERATURES AND A NEAR EQUAL CHANCE OF ABOVE OR BELOW NORMAL RAINFALL. SINCE THERE IS A LOW CHANCE OF INCREASED RAINFALL OVER OUR AREA…IT IS LIKELY THAT PROLONGED DROUGHT CONDITIONS WILL PERSIST ACROSS THE AREA INTO THE EARLY PART OF SUMMER.
Something to look forward to. Just how bad it is can be seen in this Jeff Gammons photo of Lake Okeechobee
Actually, they are closer to normal rainfall totals than we are.
Another World
The Wall Street Journal, a stimulating and responsible paper outside of its editorial pages, looks at real CEO compensation. That is, what is paid beyond salary. The numbers and perks really are beyond imagination for we mere mortals making 5- or low 6-figure salaries. At the top of the WSJ list is the Merrill Lynch CEO at $91.38 million. Looks more impressive when you include all the zeros: $91,380,000. If you just look at his salary of $700,000 you would think it a reasonable sum. But he gets so much more: a cash bonus of $18.5 million, $1.95 million for his pension plan, and stock options worth more than $68 million. And these worthy amounts do not include his car compensation of $212,000 and his aircraft allowance of $149,000. Should he retire at age 55, the present value of his retirement plan is more than $24 million.
Yeah, sure, he brings value to his company and, in turn, to the American economy. Yeah, sure, we need rewards commensurate with talent and success. But the Democrat in me leads me immediately to think of this when I see these kinds of salaries:

In 2005 we saw GDP growth of 3.2% and productivity gains of 2.1%. Yet the bottom 90% of workers actually lost income (-0.6%). That is, when you add up the income of everyone who made less than a six-figure salary in 2005 and calculate the effect of inflation on that figure, the total salary is less than it was a year earlier.
Only those in the top 10% ($125,000 and up in household income) and especially the top 1% ($1.8 million and up) saw substantial gains. To find a CEO on the WSJ list merely in the top 1% of income earners you’ll have scroll all the way down to the bottom where dwells those for whom income is just the slightest contribution to their wealth.
You can see as well how skewed the growth is as well. The 95th-99th percentile group (starting at $166,000) saw double the growth as the 90th percentile, 99th+ percentile nearly double the growth of the group below and the top .5% enjoyed income growth more than double the high flyers just below them and 8 times higher than those making a mere $125K/year.
Where is the Vast Wealth the U.S. Generates Going?
A good question. Recent data from Bureau of Economic Analysis and the Congressional Budget Office reveals the answer to this question.
Figure A shows that a larger percentage of corporate income is going into profits and interest. A firm must spend less on employee compensation to allot more to capital income. A smaller percentage goes into employee compensation even though each dollar spent on compensation produces more value for the corporation than that same dollar yielded only the year before.

Since the top 1% of earners own a disproportionate share of capital assets, this redistribution of corporate income disproportionately benefits the richest of Americans. We can see that in Figure B.

Capital income is not just concentrated in the top 1% of earners, but is becoming increasingly so. Note the rise of the angle of growth. The increase in the concentration of capital income between 2000 and 2004 grew as quickly as it did in the preceding 11-year period (1989-2000). And look at the percentages. Nearly 6 of every 10 dollars in capital income goes to 1% of American citizens.
Who needs unions when we have our CEOs looking out for our best interests?
Where Are You?

—From U.S. Census Bureau via JEC Democrats
You can find an excellent discussion of income distribution at VisualizingEconomics.com


Took me thirty minutes to get through the security line and flight to Houston and to OKC both were packed. Times are getting better for the airlines but at the expense of passenger service and comfort. I decided to check no luggage just to not stress their baggage handling capabilities beyond their breaking point.
I didn’t want this to be me and my bag.
Do these travelers look absolutely whipped or what? Of course, this is 9 AM and probably everyone already took a flight to Atlanta. Getting up at the crack of dawn to get through security, walking sideways down narrow plane aisles, squeezing into tiny seats, barely enough time to wolf down your biscottis before the attendants are back through whisking up your snack remains. Then you single-file your way off the plane and wait around on seats with no backs for the connecting flight and repeat the process over again.
But it is lovely and clean.





Written and directed by Laurence Kasdan’s son, this movie attempts to deliver big ideas about relationships between men and women but cannot rise above the perspective of the young and confused male lead. The director does not seem to know any more about relationships than a typical 25 year-old. So while the scenery is pretty and Meg Ryan’s house appears to be decorated in colors that compliment her eyes. But the dialogue reaches for meaning but never rises above platitudes and obvious truths. Too bad.




