Economy
IMF: Income Inequality Worsens in Most Developed Countries
Originally I had scheduled the article below for posting on next Friday. After reading yesterday’s The New York Times editorial on Occupy Wall Street protests I decided to publish it today. From the Times editorial: Extreme inequality is the hallmark of a dysfunctional economy, dominated by a financial sector that is driven as much by [...]
The Next U.S. Crisis Could be Worse Than the Previous One
The U.S. markets made a dramatic turnaround today with the S&P 500 soaring 4.1% in the final 50 minutes of trading. Up until few weeks ago US stocks had held up well compared to European stocks as investors assumed the European debt crisis would have a smaller impact here. However despite the perceived strength of [...]
Why You Should Listen to Warren, Not Buffett
Mr.Warren Buffett is one of the US billionaires and chairman of the Berkshire Hathaway Inc. Ms.Elizabeth Warren is an attorney, Harvard law professor, and a United States Senate candidate. I came across an interesting article with the same title as above by John DeFeo in TheStreet.com The reason for Warren’s newfound Internet stardom is simple. [...]
Why Higher Taxes Are Not a Barrier to Economic Growth
The U.S. has one of the lowest individual income tax rates among the developed countries. For example, the top individual tax rate used to be 91% in 1960. For the 17 years from 1965-1981, the top individual marginal tax rate was 70%. However President Ronald Reagan reduced it drastically from 70% to 28%. Currently the top [...]
The World’s Ten Biggest Employers
I came across an interesting article in The Economist magazine recently that discussed about the biggest employers in the world. When the economy is sluggish private sector is unable to create jobs due to the lack of demand for goods and services. For example, despite having over a Trillion dollar in cash, U.S. companies have [...]
U.S. Household Debt: A Major Impediment To Any Economic Recovery
The size of the U.S. economy is about $14.66 Trillion. However over 70% of the GDP is based on consumption spending. As a result any recovery is highly dependent on the U.S. consumer whose household debt is still too high by historical standards. This is in sharp contrast to U.S. companies which hold over $1.0 [...]
