Tag Archives: economics

A Bit of Perspective

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The 1%-ers, the Evil Rich.  How much does it take, really, to become of member of the world-wide crowd of really rich folks, or how much would have to be given up to leave that group?  Jade Scipioni, of FOXBusiness, offered some information from Credit Suisse Research Institute’s 2018 Global Wealth Report last week.

  • the global top 1% requires a net worth of US$871,320
  • the global top 10% requires a net worth of US$93,170
  • the global top 50% requires a net worth of US$4,210

On the other hand, the Federal Poverty Guideline income for a family of four for the US in 2018 is US$25,100, and the median household income in the US is US$62,175 as of last June (income is just one component of net worth, which also includes the value of possessions).  The median net worth in the US is in the neighborhood of US$84,500 for a middle-aged, 50-ish person.  (An aside: that middle-age for an American compares to a life expectancy—total lifetime—of an Angolan of 52 years, 51 years for a Chadian, 50 years in the Democratic Republic of Congo, 53 years in Mali….)

There does seem to be something to this capitalism business.  A free market is both a first and an absolutely necessary step in seeing to our least.

None of this means we shouldn’t care about our own poor, rich though they are in the world.  They live in our neck of the woods, not the world at large.  The responsibility for seeing to the least among us is ours, first—they are our neighbors—and our government’s only last.  It’s useful to keep in mind, though, that we’re not as bad or as bad off as we’re often made out to be.

The full report can be read here.

Quick Thought on Tax Reform

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The Progressive-Democrats won a majority in the House, and the Republicans look like they’re going to expand their majority in the Senate.  That looks like legislative paralysis in the next Congress.

However.

The next Congress won’t be sworn in until 3 January 2019.  That gives two months for the present Congress, with Republican majorities in both houses, to get some remaining stuff done.

Top on that list in my august view is tax reform.  This Congress needs to move to make permanent the individual income tax cuts that otherwise will expire in 2025.  Get it done now, before the Progressive-Democrats, with their gridlock, take sufficient office to block the reform.

A Government Personnel Shakeup

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This one in the Republic of Korea.  RoK President Moon Jae-in has removed many of his economic cabinet members because the RoK’s economy has continued to stagnate.

So far, the government’s prescribed medicine—big increases in public-sector hiring and the minimum wage—hasn’t proved an elixir.

What a surprise—government crowding out the private sector, competing with the private sector for labor, demanding that workers be paid more than their work is worth isn’t economically stimulative.

Unfortunately, Moon is only changing personnel; he’s not correcting policy. Here’s Lee Sang-jae, Eugene Investment & Securities macroeconomy analyst:

Mr Moon’s policy will stay on course and hardly change, just with a second line of its original architects at the helm[.]

Brexit Talks

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In a Wall Street Journal article about the general government paralysis in Great Britain as the Brexit question is allowed to consume all of Parliament’s energy, one statement jumped out at me.

Instead, her [Theresa May’s] premiership is being defined by the Brexit negotiation itself.

What negotiations? Brussels is dictating punitive terms, and May and her team are meekly rolling over and accepting them. They’re even agreeing to discuss an effective partition of Great Britain rather than rejecting the question out of hand and walking out of all of the “negotiations” over the calculated insult and attempt to dismantle Great Britain.

Censorship

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The ramp-up in political spending across Facebook’s social networks, which also include Instagram, is breathtaking: In 2014, digital ad spending was 1% of all political ad spending. Now it’s 22%, or about $1.9 billion, according to the nonpartisan Center for Responsive Politics. Facebook says that politicians have spent nearly $300 million in the US on Facebook ads since May.

And

Politicians who want to reach the same voters their competitors are reaching on Facebook have little choice but to go there, too.

Which helps explain why Facebook was so willing to censor conservative political ads.