States With The Fastest Growing Economies

This article was originally published on 24/7 Wall St. 

The U.S. economy grew 2.4% in 2015. This is the most the economy has grown in more than five years, and is a slight improvement on 2014’s 2.2% growth.

The economies of all but two states grew in 2015, some substantially more than others, and for a variety of reasons. California and Oregon each grew by 4.1%, more than any other state. Alaska and North Dakota contracted, while several states saw increases of less than 0.5%.

The professional and business services industry, the information industry, and the real estate, rental and leasing industry contributed most prominently to the nation’s growth last year.

Click here to see the states with the fastest growing economies.

Click here to see the states with the slowest growing economies.

In an interview with 24/7 Wall St., Clifford Woodruff, an economist with the Bureau of Economic Analysis, explained that the biggest drain on state economies last year was the mining sector. Indeed, the mining sectors of 34 states declined last year, including declines of at least 10% in 20 of these. He went on to say that the national decline in oil prices has likely contributed to this drop in the sector.

The impact of a suddenly weak energy industry was most apparent in North Dakota. The state had been one of the fastest growing in the country, both in terms of population and GDP over the past few years, as the development of the Bakken shale oil formation led to a substantial boom. The state had the largest economic growth of any state in four of the five years through 2014, including a 21.7% increase in 2012. In 2015, the state economy contracted by 2.1%, more than any other state.

On the whole, populations grew substantially more in the states with the fastest-growing economies, and stagnated or declined in the worst performers. Population growth exceeded 0.4% in only one of the 10 states with the weakest economies in 2015. All of the 10 states with the strongest economies surpassed the national population growth rate of 0.8%.

Woodruff explained that population growth does not necessarily lead to GDP growth, as states can import goods from other states or countries without producing more goods locally. He added, however, that it makes sense that the two figures usually move in step. “Obviously, the more people that there are, the more products, the more food, the more houses they’re going to need.”

Based on figures published by the Bureau of Economic Analysis, 24/7 Wall St. reviewed 2015 real GDP growth rates in all 50 states. The real gross domestic product measurement accounts for the effects of inflation on growth. GDP figures published by the BEA for 2015 are preliminary and subject to annual revision. Real GDP figures for past years have already been revised. Population data are from the U.S. Census Bureau and reflect estimated growth between 2014 and 2015. We also used data on poverty from the U.S. Census Bureau’s American Community Survey (ACS). Both 2014 and 2015 unemployment rates are annual averages and are from the Bureau of Labor Statistics (BLS).

These are the states with the fastest (and slowest) growing economies.

10. North Carolina
>2015 GDP growth: 2.7%
> 2015 GDP: $442.5 billion (9th largest)
> 1-yr. population change: 1.0% (14th highest)
> 2015 unemployment: 5.7% (17th highest)

North Carolina’s economy grew at a 2.7% pace in 2015, the 10th fastest growing state economy. This was an improvement from 2014, when the state’s economy grew by 2.1%, which was 21st in the country that year. This economic growth pushed the state from the 10th largest economy in the country to the ninth, replacing Georgia. The finance, insurance, and real estate as well as the professional and business services industries contributed significantly to the state’s economic growth — expanding by 3.5% and 6.3%, respectively, in 2015. The state’s professional industry has recorded a 4% or higher growth rate in five of the past six years.

9. Nevada
>2015 GDP growth: 2.8%
> 2015 GDP: $126.2 billion (18th smallest)
> 1-yr. population change: 1.9% (3rd highest)
> 2015 unemployment: 6.7% (2nd highest)

Nevada’s economy grew at a 2.8% pace in 2015, slightly faster than the national 2.4% growth rate. Growth was largely driven by the 7.4% expansion of the finance, insurance and real estate industry, the largest in the state by economic output. The mining industry, which contracted by 13.8%, was one of the biggest drags on the state’s economy. Like all states with rapid economic growth, the number of people who call Nevada home is going up. The state’s population increased by 53,000 in 2015, a 1.9% increase.

Despite relatively rapid economic expansion, Nevada’s economy remains relatively weak. The state’s 6.7% 2015 unemployment rate is the highest in the country and far higher than the 5.3% nationwide rate.

 

8. Washington
>2015 GDP growth: 2.9%
> 2015 GDP: $397.3 billion (14th largest)
> 1-yr. population change: 1.5% (7th largest increase)
> 2015 unemployment: 5.7% (17th highest)

Washington’s economy grew at a 2.9% pace last year, surpassing the 2.4% national growth rate. One of the biggest contributions to the state’s economy came from its retail sector, which expanded by 9.4%. According to the National Retail Federation, a retail trade association, the retail industry is Washington’s largest private sector employer, directly supporting about one in every five jobs in the state. Other major contributions to Washington’s economic growth came from its information sector and its finance, insurance, real estate, rental, and leasing industries.

7. Florida
>2015 GDP growth: 3.1%
> 2015 GDP: $789.8 billion (4th largest)
> 1-yr. population change: 1.8% (4th largest increase)
> 2015 unemployment: 5.4% (22nd highest)

Florida is one of just seven states where GDP grew by at least 3% in 2015. The Sunshine State’s GDP, which remains the fourth largest in the country, increased to approximately $790 billion. Population tends to increase more rapidly in states with more robust economic growth, and Florida is no exception. The state’s population increased by 1.8% in 2015, the fourth largest growth in the country.

6. Utah
>2015 GDP growth: 3.3%
> 2015 GDP: $131.2 billion (19th smallest)
> 1-yr. population change: 1.7% (6th largest increase)
> 2015 unemployment: 3.5% (5th lowest)

Utah’s economy grew at a 3.3% pace in 2015, faster than all but five other states. One of the largest contributions to the state’s GDP came from its finance, insurance, real estate, rental, and leasing sector, which expanded by 4.5% over the year. Nationwide, the sector expanded by a much slower 1.8%.

Utah’s rapid economic growth may have helped maintain low unemployment in the state. Just 3.5% of Utah’s workforce is unemployed, much less than the 5.3% national 2015 unemployment rate.

5. Montana
>2015 GDP growth: 3.5%
> 2015 GDP: $41.1 billion (4th smallest)
> 1-yr. population change: 0.9% (15th largest increase)
> 2015 unemployment: 4.1% (11th lowest)

Montana’s economy expanded from $39.7 billion in 2014 to $41.1 billion in 2015, a 3.5% growth rate. Over roughly the same time period, the state’s jobless rate dropped from 4.7% to 4.1%. Economic growth was largely spurred by expansion in many of the state’s largest industries, including manufacturing, which grew at a rapid 12.5% pace. The mining industry was the biggest drag on the economy, contracting by 6.1%. 

4. Colorado
>2015 GDP growth: 3.6%
> 2015 GDP: $288.8 billion (18th largest)
> 1-yr. population change: 1.9% (2nd largest increase)
> 2015 unemployment: 3.9% (10th lowest)

Colorado’s economy grew at a robust rate for the second straight year. The state’s GDP growth rate of 4.1% in 2014 was third in the country. In 2015, Colorado’s 3.6% GDP growth rate was fourth largest. While there are exceptions, larger economic expansions tend to coincide with greater population growth. Each new resident will consume more goods and generate more economic output. Not surprisingly, Colorado’s population grew by nearly 2% in 2015, second fastest in the country and well above the national population growth rate of 0.8%.

The state’s finance, insurance, and real estate industry as well as its professional sector contributed substantially to Colorado’s economic growth, expanding by 4.6% and 5.0%, respectively.

 

3. Texas
>2015 GDP growth: 3.8%
> 2015 GDP: $1.48 trillion (2nd largest)
> 1-yr. population change: 1.8% (5th largest increase)
> 2015 unemployment: 4.5% (18th lowest)

The Texas economy grew by 3.8% in 2015, faster than any state other than Oregon and California. Texas has nearly one-third of the nation’s crude oil reserves, and its economy is heavily dependent on the price of oil. As oil prices have fallen in recent years, the economies of many of the most oil-dependent counties in the state also suffered. While the statewide unemployment rate fell from 5.1% in 2014 to 4.5% in 2015, the jobless rate in many of the state’s top oil-producing counties increased. Still, economic growth in the state was led by the mining sector, which grew at a rapid 12.4% pace. By comparison, the U.S. mining sector as a whole grew at a 5.1% pace in the same period and actually declined in most states.

2. California
>2015 GDP growth: 4.1%
> 2015 GDP: $2.21 trillion (the largest)
> 1-yr. population change: 0.9% (16th largest increase)
> 2015 unemployment: 6.2% (7th highest)

California’s $2.2 trillion GDP is the largest in the country. Its 4.1% economic expansion in 2015 was also the fastest in the U.S., tied only with Oregon. Growth was driven primarily by the professional and business services industry as well as the information industry, which grew by 7.0% and 10.3%, respectively.

The size of the state’s economy may not be surprising — with 39.1 million residents, California is also the most populous state in the country. As it is, there are not enough jobs in the state to accommodate the workforce. California’s 2015 unemployment rate of 6.2% is nearly a full percentage point higher than the national jobless rate of 5.3%.

1. Oregon
>2015 GDP growth: 4.1%
> 2015 GDP: $199.4 billion (25th largest)
> 1-yr. population change: 1.5% (9th largest increase)
> 2015 unemployment: 5.7% (17th highest)

Oregon’s GDP expanded by 4.1%, at the same pace as its neighbor to the south. State economic output increased from $191.6 billion in 2014 to $199.4 billion in 2015. Despite rapid economic growth, unemployment in Oregon remains higher than it is nationwide. The state’s 5.7% jobless rate is nearly half a percentage point higher than the national 5.3% unemployment rate.

Manufacturing, Oregon’s largest industry, had among the greatest impacts on the state economic growth in 2015, expanding by 5.7%. Manufacturing is likely to have a continued positive effect on the economy. In May 2016, the state legislature pledged $7.5 million for a manufacturing innovation center to train the next generation of industry workers.

Uber Brings Gridlocked Sao Paulo Commuters Another Option: Helicopter Rides

For commuters who imagine soaring above Sao Paulo's notorious traffic jams, ride-hailing app Uber is offering to make that daydream a reality, starting at around $20.

Brazil's biggest city on Monday became the first in the world where Uber Technologies Inc [UBER.UL] offers on-demand chopper rides between airports, hotels and convention centers.

With more than 400 aircraft and nearly as many helipads, Sao Paulo has a helicopter fleet that rivals those of New York and Tokyo, but commuting by air remains an option mostly for millionaires.

Uber aims to change that with a month-long pilot program.

ASSOCIATED PRESS

A passenger checks Uber on his cell phone as he waits for a helicopter he requested through the application, at a hotel in Sao Paulo, Brazil, Tuesday, June 14, 2016.

Promotional prices through Thursday start at 66 reais ($19) per seat for a lift from Helicentro Morumbi, in one of Sao Paulo's richest neighborhoods, to the Blue Tree hotel across the river. The distance is nearly four miles (6 km), as the chopper flies.

A ride from the Blue Tree Faria Lima onward to Guarulhos International Airport costs 271 reais during the promotion. A car can take one to three hours to make that trip, depending on traffic.

Uber media representatives declined to say how much prices would rise after Thursday or how many helicopters would be made available by the three companies operating the flights. Uber aims to get as much as five times the flight time out of each helicopter compared to standard use, according to a spokeswoman.

ASSOCIATED PRESS

A helicopter carrying a passenger who booked his trip using Uber flies over Sao Paulo, Brazil, Tuesday, June 14, 2016.

The Sao Paulo pilot program, connecting four airports and five other helipads, is Uber's biggest step yet in a partnership with Airbus Group, announced in January.

Uber experimented in recent years with helicopter rides to the Coachella and Bonnaroo music festivals from nearby U.S. airports that cost as much as $3,000 to book a full helicopter and door-to-door SUV rides.

Spanish rival Cabify, which launched its Sao Paulo car service on Monday, is also in talks with three flight providers and plans to offer helicopter rides in the city by the end of the year, as it already does in Mexico City.

Walgreens Is Walking Out On Scandal-Struck Theranos

Things just got much worse for Theranos.

On Sunday, pharmacy giant Walgreens abandoned the embattled blood-testing startup accused of failing to deliver accurate results with its tests. The move came roughly nine months after The Wall Street Journal exposed major problems with the company's technology, which claimed to be able to run more than 240 blood tests using just a drop of blood. 

"We have carefully considered our relationship with Theranos and believe it is in our customers' best interests to terminate our partnership," Brad Fluegel, Walgreens' senior vice president and chief health care commercial market development officer, said in a statement. 

The announcement strikes yet another major blow against Theranos, the 13-year-old startup that once boasted former Secretaries of State Henry Kissinger and George P. Schultz as board members.

Nearly two weeks after the Journal published its exposé, the U.S. Food and Drug Administration said tiny vials Theranos used to collect patients' blood were not approved medical devices. In January, Walgreens suspended sending tests through Theranos' California laboratory, sparking a standoff between the two companies. According to a February report in the Financial Times, lawyers for Theranos believed there was "little legal basis for terminating the partnership." But the damage was already done. 

“They’ve been unhappy with the relationship and it’s really a question of working through the contractual and legal arrangements,” an unnamed person familiar with the matter told the FT of Walgreens' position. “They’re not interested in the Theranos deal.”

In March, federal regulators proposed banning Theranos founder and CEO Elizabeth Holmes from the blood testing industry for two years. 

"Quality and safety are our top priorities and we are working closely with government officials to ensure that we not only comply with all federal regulations but exceed them," Brooke Buchanan, a Theranos spokeswoman, wrote in a statement on Sunday. "We are disappointed that Walgreens has chosen to terminate our relationship and remain fully committed to our mission to provide patients access to affordable health information and look forward to continuing to serve customers in Arizona and California through our independent retail locations."

It's unclear how much the deal was worth.

By backing out of the partnership, Walgreens puts Theranos' finances in further jeopardy. Two weeks ago, Forbes downgraded the company's value from $9 billion to $800 million. In doing so, the magazine -- whose lists evaluating the world's richest people and companies are considered the most definitive measure of wealth -- valued Holmes' net worth at about nothing. 

"At such a low valuation, Holmes' stake is essentially worth nothing," reporter Matthew Herper wrote in a report announcing the reassessment. "Theranos investors own preferred shares, which meanes they get paid back before Holmes, who owns common stock." 

Holmes was previously valued at about $4.5 billion. 

Microsoft Agrees To Acquire LinkedIn For $26.2 Billion

(Reuters) - Microsoft Corp <MSFT.O> agreed to buy LinkedIn Corp <LNKD.N> for $26.2 billion in cash, the companies said in a statement on Monday.

The offer of $196 per share represents a premium of 49.5 percent to LinkedIn's Friday closing price.

"Today is a re-founding moment for LinkedIn," Reid Hoffman, chairman of LinkedIn's board, said in a statement.

Jeff Weiner will remain chief executive of LinkedIn, reporting to Microsoft CEO Satya Nadella.

The deal is expected to close in 2016.

 

(Reporting by Supantha Mukherjee in Bengaluru; Editing by Saumyadeb Chakrabarty)

Who Is Trump Hotels' Perfect Customer?

Donald Trump's name is on many, many hotels. 

Unlike some other Trump-branded real estate where the name is simply licensed, the Trump family has "intimate involvement" with the hotels, and guarantees "full implementation of the Trump brand standard," according to the Trump Hotels website.

What exactly is this Trump brand standard, and who is it appealing to?

The basic theory of luxury hotel website branding is that it should be aspirational. Most hotels have very few people in their photos, so that you can imagine yourself sprawled out on the plump pillows, or relaxing calmly by the empty pool.

At the Ace Hotel in New York City, popular with the young creative set, the camera focuses on a guitar sitting in an empty room, just begging you to imagine yourself rocking out on your stay. At the Ritz Carlton Waikiki, lavish rooms with floor-to-ceiling windows overlook the green Hawaiian ocean. Hilton's Paris La Defense hotel portrays a lone businessman checking in, surrounded by an empty lobby.

Trump hotels, though, they have people. The landing pages for Trump Hotel websites portray a rotating selection of images of people using the hotel facilities in some capacity. The photos often feature older men. They are white and very tan. It's not uncommon for those older men to be accompanied by thin young women, who are mostly also white. Everyone is having a great time and don't at all look dead inside. 

The Huffington Post contacted Trump Hotels for comment, but has yet to hear back.

Here are some examples of people enjoying Trump Hotels, courtesy of the Trump Hotels website:

 

"I love to explain things to you."

Trump Hotels

"Really, I love it."

Trump Hotels

"Are you sure that guy isn't following us?"

Trump Hotels

At the end of this story, one of them turns out to be a ghost.

Trump Hotels

Either she doesn't have internal organs or they were a little overzealous with the photoshop.

Trump Hotels

"Your ear is so much nicer than my first wife's."

Trump Hotels

"Have you ever read King Lear?"

Trump Hotels

What man doesn't want to watch a woman (his daughter, probably) think about the food she isn't eating?

Trump Hotels

Literally, this black person is bathing a white person.

Trump Hotels

"Paint me like one of your flamingos."

Trump Hotels

Editor’s note: Donald Trump regularly incites political violence and is a serial liar, rampant xenophobe, racist, misogynist and birther who has repeatedly pledged to ban all Muslims — 1.6 billion members of an entire religion — from entering the U.S.

Exxon Supports A Carbon Tax Except When There Is A Vote On A Carbon Tax

ExxonMobil has long maintained that it supports a carbon tax in the United States. 

For instance, here's Suzanne McCarron, ExxonMobil vice president of public and government affairs, in the Los Angeles Times on Mar. 14: "When governments are considering policy options, ExxonMobil believes a revenue-neutral carbon tax is the most effective way to manage carbon emissions."

Here's Exxon's CEO Rex Tillerson at last month's shareholder meeting: "Our valuation of those [policy] alternatives suggests that a carbon tax is the most efficient way to implement policy design to influence behavior."

These are not new or isolated comments. Tillerson has publicly said Exxon supports a carbon tax -- which helps combat global warming by putting a price on the greenhouse gases in fuels -- since 2009. He said back then that "a carbon tax strikes me as a more direct, a more transparent and a more effective approach," compared to more cap-and-trade regulation, which creates a complex market for the right to emit greenhouse gases.

So where does the company stand now that the House of Representatives is set to vote on a non-binding resolution that rails against a carbon tax?

"We’re not commenting on the resolution," Exxon spokesman Alan Jeffers told The Huffington Post in an email. He went on to detail the company's long-standing support of a carbon tax and many of the policies benefits that the resolution denies exists.

In 2015, David Hasemyer and Bob Simison of Inside Climate News detailed how Exxon's public support of a carbon tax has never been matched by a practical commitment to backing a carbon tax politically. Exxon's reluctance to comment on the carbon tax vote in the House Friday is, at least, a continuation of that consistent strategy.

Parents Say Panera Gave Allergic Girl Peanut Butter In Her Grilled Cheese

A Boston-area family is suing Panera Bread, claiming their highly allergic 5-year-old daughter was given two dollops of peanut butter in her grilled cheese sandwich despite repeated warnings to the restaurant of her allergy.

In a lawsuit filed against the chain last week, John and Elyssa Russo of Natick, Massachusetts, claim their daughter had to be hospitalized overnight after the family ordered a meal online on Jan. 28, The Boston Globe reports.

The Russos say they specifically noted their daughter's peanut allergy on the online order form, and so were mystified as to why the extra ingredient had been added to her meal.

“Is this somebody doing this on purpose?" John Russo later asked a manager at the Natick Panera, in his own telling. "Because it’s two freakin’ tablespoons of peanut butter on this sandwich and it’s a grilled cheese."

The Russos didn't realize there was peanut butter in the sandwich until the girl had already bitten into it. She vomited and broke out in hives later that evening, the family says.

Scott Olson/Getty Images

A restaurant manager reportedly apologized for the mistake and blamed it on a "language" issue.

Russo said the manager apologized for the mistake and blamed it on a “language” issue.

A Panera spokesman declined to comment directly on the suit when reached by The Huffington Post Monday.

"Panera takes the issue of food allergens, including the reported incident at our franchise bakery-cafe, very seriously,” the spokesman said in an email. “We have procedures in place across the company to minimize exposure and risk for our guests and associates. We do not comment on pending litigation."

The suit was filed in Massachusetts' Middlesex County Superior Court on Thursday.