American Economics Thread


Equation

Lieutenant General
You mad bro?
50175417.jpg
 
"Too big to fail" policies are alive and well continuing to curse the average American since the late 2000's financial crisis, systematically ingraining the opportunity gap and drastically worsening inequality.

Empirical financial evidence from this article:
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...
More businesses closed than opened during the post-2008 “recovery” than opened
...
gallupstartups.png


And businesses with fewer than 50 employees accounted for only 1 in 6 jobs created since 2005. In the three decades preceding the 2008 crash, by contrast, In other words, startups created 2.9 million jobs a year while established firms lost 1.5 million jobs a year.
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Asset prices recovered, but there was no way that ordinary folk could get in on the gravy train. Private equity firms raised billions to buy foreclosed homes and rent them to people who used to own their own homes at much higher total cost. The national homeownership rate has fallen from 69% to 64% since the crisis, and rents are rising at 4% a year, much faster than incomes.
homeownervscpi2-1024x680.png
 

AssassinsMace

Lieutenant General
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I don't know why this didn't happen sooner. And it's probably too late because now it looks like they're circumventing a democratic process overriding a popular movement. After Obama's NSA scandal arrogance that made US hi-tech international sales fall, Trump is going to destroy the US economy if he's actually going to pull the trigger on all his threats regarding trade. When he gets all American jobs back to the US, is he going to force the world to buy American like he'll make Mexico pay for the wall? While prices for American products skyrocket due to increased labor costs making it unaffordable for most Americans and certainly the rest of the world, what's to stop foreign rivals from outsourcing making their products far less expensive than made in America? No US company is going to survive in that environment.
 

Bernard

Junior Member
New York Is The City With The Most Billionaires, Not Beijing
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New York City is still the world capital for the ultra-rich. Seventy-nine billionaires call the Big
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home, holding a combined $364.6 billion in wealth. These include two of the world’s 10 richest people: industrialist
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and media titan
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.

Despite the enduring allure of America’s wealthiest city, Asian metropolises are increasingly becoming billionaire magnets. Asia’s financial capital, Hong Kong, jumped ahead of Moscow into the number two spot this year. Its 68 billionaire residents are worth a combined $261.3 billion.

Contrary to a widely circulated report from Chinese research firm Hurun last week calling Beijing “The New Billionaire Capital of the World,” the city is just fourth in line, with 51 residents holding three-comma fortunes, according to Forbes’ research. This year the Chinese capital surpassed London, home to 48 billionaires.

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Forbes’ net worth calculations discount a portion of shares pledged as collateral for debts. Our methodology also excludes fortunes shared by a husband and wife or by an extended family, unless net worths are at least $1 billion per individual. Forbes used stock prices and exchange rates from Feb. 12 for the 2016 Billionaires List.

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Hurun’s wealth list includes all fortunes shares by a husband and wife and those of individuals rather than families “where possible,” according to Hurun founder Rupert Hoogewerf. Hurun‘s calculations were a snapshot of wealth from Jan. 15.

In all, six of the top 10 cities with the most billionaires this year were in Asia. These included China’s other economic powerhouses, Shanghai and Shenzhen; India’s financial hub, Mumbai; and South Korea’s high-tech capital, Seoul. San Francisco, with its concentration of tech billionaires, is the only other American city in the top 10 (if you counted the entire metropolitan region and Silicon Valley, it would come in second, with 70 billionaires).

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The popularity of Asia’s urban centers is not surprising. More billionaires hail from the Asia-Pacific region than any other region of the world – 590 compared to 540 from the United States. More than 70 newcomers to the World’s Billionaires List in 2016 were Chinese nationals, more than double the number of Americans. Still, there are more than twice as many American billionaires as Chinese ones (540 vs. 252), holding four times as much wealth ($2.4 trillion vs. $594 billion).

Hong Kong and Beijing may well overtake New York as the billionaire capital soon – but not yet.

Here is the full list of the top 10 cities home to the most billionaires:

1. New York

Billionaires: 79

Combined net worth: $364.6 billion

2. Hong Kong

Billionaires: 68

Combined net worth: $261.3 billion

3. Moscow

Billionaires: 60

Combined net worth: $217.6 billion

4. Beijing

Billionaires: 51

Combined net worth: $149.9 billion

5. London

Billionaires: 48

Combined net worth: $187.7 billion

6. Mumbai

Billionaires: 32

Combined net worth: $115.1 billion

7. Shanghai

Billionaires: 31

Combined net worth: $66.1 billion

8. Seoul

Billionaires: 30

Combined net worth: $73.9 billion

9. Shenzhen

Billionaires: 30

Combined net worth: $78 billion

10. San Francisco

Billionaires: 28

Net worth: $74.5 billion


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taxiya

Brigadier
Registered Member
New York Is The City With The Most Billionaires, Not Beijing
manhattan1-e1456777601118-1200x678.jpg

New York City is still the world capital for the ultra-rich. Seventy-nine billionaires call the Big
Please, Log in or Register to view URLs content!
Please, Log in or Register to view URLs content!
home, holding a combined $364.6 billion in wealth. These include two of the world’s 10 richest people: industrialist
Please, Log in or Register to view URLs content!
and media titan
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.

Despite the enduring allure of America’s wealthiest city, Asian metropolises are increasingly becoming billionaire magnets. Asia’s financial capital, Hong Kong, jumped ahead of Moscow into the number two spot this year. Its 68 billionaire residents are worth a combined $261.3 billion.

Contrary to a widely circulated report from Chinese research firm Hurun last week calling Beijing “The New Billionaire Capital of the World,” the city is just fourth in line, with 51 residents holding three-comma fortunes, according to Forbes’ research. This year the Chinese capital surpassed London, home to 48 billionaires.

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400x400.jpg

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Forbes’ net worth calculations discount a portion of shares pledged as collateral for debts. Our methodology also excludes fortunes shared by a husband and wife or by an extended family, unless net worths are at least $1 billion per individual. Forbes used stock prices and exchange rates from Feb. 12 for the 2016 Billionaires List.

Hurun’s wealth list includes all fortunes shares by a husband and wife and those of individuals rather than families “where possible,” according to Hurun founder Rupert Hoogewerf. Hurun‘s calculations were a snapshot of wealth from Jan. 15.

In all, six of the top 10 cities with the most billionaires this year were in Asia. These included China’s other economic powerhouses, Shanghai and Shenzhen; India’s financial hub, Mumbai; and South Korea’s high-tech capital, Seoul. San Francisco, with its concentration of tech billionaires, is the only other American city in the top 10 (if you counted the entire metropolitan region and Silicon Valley, it would come in second, with 70 billionaires).

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The popularity of Asia’s urban centers is not surprising. More billionaires hail from the Asia-Pacific region than any other region of the world – 590 compared to 540 from the United States. More than 70 newcomers to the World’s Billionaires List in 2016 were Chinese nationals, more than double the number of Americans. Still, there are more than twice as many American billionaires as Chinese ones (540 vs. 252), holding four times as much wealth ($2.4 trillion vs. $594 billion).

Hong Kong and Beijing may well overtake New York as the billionaire capital soon – but not yet.

Here is the full list of the top 10 cities home to the most billionaires:

1. New York

Billionaires: 79

Combined net worth: $364.6 billion

2. Hong Kong

Billionaires: 68

Combined net worth: $261.3 billion

3. Moscow

Billionaires: 60

Combined net worth: $217.6 billion

4. Beijing

Billionaires: 51

Combined net worth: $149.9 billion

5. London

Billionaires: 48

Combined net worth: $187.7 billion

6. Mumbai

Billionaires: 32

Combined net worth: $115.1 billion

7. Shanghai

Billionaires: 31

Combined net worth: $66.1 billion

8. Seoul

Billionaires: 30

Combined net worth: $73.9 billion

9. Shenzhen

Billionaires: 30

Combined net worth: $78 billion

10. San Francisco

Billionaires: 28

Net worth: $74.5 billion


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I never liked the idea that any Chinese city get into this list. More billionaires means more low-income people, smaller tax base to the state, lesser legitimacy of the state in the eyes of commoners, therefore a weaker country.

History of the fall of many dynasties and forthcoming civil wars has taught us the lesson. I hope the communist does not become another dynasty for everyone's sake.
 

Equation

Lieutenant General
New York Is The City With The Most Billionaires, Not Beijing
manhattan1-e1456777601118-1200x678.jpg

New York City is still the world capital for the ultra-rich. Seventy-nine billionaires call the Big
Please, Log in or Register to view URLs content!
Please, Log in or Register to view URLs content!
home, holding a combined $364.6 billion in wealth. These include two of the world’s 10 richest people: industrialist
Please, Log in or Register to view URLs content!
and media titan
Please, Log in or Register to view URLs content!
.

Despite the enduring allure of America’s wealthiest city, Asian metropolises are increasingly becoming billionaire magnets. Asia’s financial capital, Hong Kong, jumped ahead of Moscow into the number two spot this year. Its 68 billionaire residents are worth a combined $261.3 billion.

Contrary to a widely circulated report from Chinese research firm Hurun last week calling Beijing “The New Billionaire Capital of the World,” the city is just fourth in line, with 51 residents holding three-comma fortunes, according to Forbes’ research. This year the Chinese capital surpassed London, home to 48 billionaires.

Please, Log in or Register to view URLs content!

400x400.jpg

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Forbes’ net worth calculations discount a portion of shares pledged as collateral for debts. Our methodology also excludes fortunes shared by a husband and wife or by an extended family, unless net worths are at least $1 billion per individual. Forbes used stock prices and exchange rates from Feb. 12 for the 2016 Billionaires List.

Hurun’s wealth list includes all fortunes shares by a husband and wife and those of individuals rather than families “where possible,” according to Hurun founder Rupert Hoogewerf. Hurun‘s calculations were a snapshot of wealth from Jan. 15.

In all, six of the top 10 cities with the most billionaires this year were in Asia. These included China’s other economic powerhouses, Shanghai and Shenzhen; India’s financial hub, Mumbai; and South Korea’s high-tech capital, Seoul. San Francisco, with its concentration of tech billionaires, is the only other American city in the top 10 (if you counted the entire metropolitan region and Silicon Valley, it would come in second, with 70 billionaires).

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The popularity of Asia’s urban centers is not surprising. More billionaires hail from the Asia-Pacific region than any other region of the world – 590 compared to 540 from the United States. More than 70 newcomers to the World’s Billionaires List in 2016 were Chinese nationals, more than double the number of Americans. Still, there are more than twice as many American billionaires as Chinese ones (540 vs. 252), holding four times as much wealth ($2.4 trillion vs. $594 billion).

Hong Kong and Beijing may well overtake New York as the billionaire capital soon – but not yet.

Here is the full list of the top 10 cities home to the most billionaires:

1. New York

Billionaires: 79

Combined net worth: $364.6 billion

2. Hong Kong

Billionaires: 68

Combined net worth: $261.3 billion

3. Moscow

Billionaires: 60

Combined net worth: $217.6 billion

4. Beijing

Billionaires: 51

Combined net worth: $149.9 billion

5. London

Billionaires: 48

Combined net worth: $187.7 billion

6. Mumbai

Billionaires: 32

Combined net worth: $115.1 billion

7. Shanghai

Billionaires: 31

Combined net worth: $66.1 billion

8. Seoul

Billionaires: 30

Combined net worth: $73.9 billion

9. Shenzhen

Billionaires: 30

Combined net worth: $78 billion

10. San Francisco

Billionaires: 28

Net worth: $74.5 billion


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China still has more women billionaires than anywhere in the world.


I never liked the idea that any Chinese city get into this list. More billionaires means more low-income people, smaller tax base to the state, lesser legitimacy of the state in the eyes of commoners, therefore a weaker country.

History of the fall of many dynasties and forthcoming civil wars has taught us the lesson. I hope the communist does not become another dynasty for everyone's sake.

Fall came from the poor leaderships NOT the system alone. China's has uplifted 800 million out of poverty including hundreds of millions into middle class than any other country in the history of man kind. So far the CPC are working pretty darn good, even far better than Reaganomics or Hope and Change.
 
Speaking of billionaires and the poor, this should not be a surprise about any economy:
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The Chilling Math of Inequality
Mar 15, 2016 7:00 AM EDT
By
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Economists have offered various
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for the frustrating slowness of global growth, from excessive debt to a shifting balance of power bringing an end to an American century. A new analysis suggests there's one that deserves greater attention: the chilling effect of inequality.

Think of an economy as a large network of individuals and firms who make and use things, interact and exchange with one another. Any party can, in principle, transact with any other, buying and selling, the only constraint being the budget of the buyer. Economists have studied network models of this sort -- called random exchange economies -- to explore how normal trading activity might (or might not) make an economy approach equilibrium.

Now some European physicists
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such a model to examine a different question: How does a significant change in inequality affect the overall level of exchange? Their study makes use of some fairly abstruse mathematics coming from physics, developed precisely for messy network problems of this kind. What they find is troubling, although not all that surprising -- rising inequality tends to undermine exchange.

The reason is quite simple. As inequality gets more pronounced, a larger fraction of the population faces more stringent budget constraints, and the spectrum of possible economic interactions open to them narrows. Fewer people have the wherewithal to engage in economic activity. This mathematical economy actually demonstrates a sharp transition, akin to the abrupt freezing of a liquid, as the level of inequality exceeds a certain threshold. Worryingly, the wealth distribution in the U.S. over the past few decades has been moving ever closer to this critical edge.

To be sure, the model is far from complete, and can only suggest possibilities. That said, it gets at the intricacies of exchange in a way that traditional macroeconomic models do not. Moreover, the effect of budget constraints on people's economic capabilities makes intuitive sense. There is every reason to believe that more realistic models would show a similar dynamic, changed only in minor details.

This inequality mechanism has nothing to do with ordinary recessions and the usual business cycle. Significant changes in the distribution of wealth take place much more slowly -- an attribute consistent with what many economists have identified as the different and more profound nature of the current global slump. The concept of secular stagnation that Larry Summers has popularized could have a number of contributing causes, including rising inequality.

If so, the inequality diagnosis opens up interesting possibilities for policy solutions. The researchers found another interesting effect -- a “trickle up” flow of wealth quite different from the usual “trickle down” picture of supply-side economics. In an economy with appreciable inequality, capital tends to flow from those with less to those with more, generating a cascade of transactions along the way. Hence, policy interventions aiming to spur economic activity should work better if they inject money into the system at the lower end, rather than from the top.

This fits with
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that quantitative easing -- in which central banks purchase securities -- may ultimately be misguided. Such a policy is supposed to encourage spending by propping up the prices of stocks and bonds, which tends to boost wealth only at the top end of the distribution. Central bankers might have a more powerful and beneficial effect if they instead injected money directly into the accounts of citizens, who could then use it to pay down debts or spend as they like.

The idea of such "people's quantitative easing" is
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, and for
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. It would more directly attack the budget constraints holding back the vast number of individuals on whom economic growth depends.
 

delft

Brigadier
Speaking of billionaires and the poor, this should not be a surprise about any economy:
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The not very reliable models economists use suggest that if ordinary people get enough money this will cause inflation. The central bankers do want inflation but only some two percent per year, not the 20 % or so necessary to reduce the prices of houses to a level bearable for ordinary working people.
 

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