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Showing posts with label Wealth. Show all posts
Showing posts with label Wealth. Show all posts

9/15/17

The Netherlands - Economy - Individual Wealth: More millionaires in the Netherlands - by Mina Solanki

According to a report by Statistics Netherlands (CBS) based on asset figures from 2007 to 2015, the number of millionaire households in the Netherlands rose by 500 to 106.000 in 2015. The report did not look at the value of the millionaire’s residence or mortgage debt.

Of the 106.000 millionaire households, two-thirds reported employment as their main source of income. The majority of millionaires work in the agricultural industry, financial services, trade, specialised business services, or in the care industry.

About 80 percent of millionaires are entrepreneurs in one way or another, with half taking the title of managing director or major shareholder and a third being self-employed.

Coming in first with the highest percentage, 19 percent of millionaire breadwinners work in the agricultural industry, half of which are active in dairy farming businesses. Many people in this industry are self-employed, and often their money is tied up in their business, for example, in land and equipment.

Financial services came second as the industry in which the most millionaires work.

In 2015, there were 94 Dutch municipalities with 2,5 percent or more residents who had millionaire status. However, in 5 municipalities, 6 percent or more of the residents were millionaires.

The greatest number of millionaires lived in Laren, followed by Bloemendaal, Blaricum, Wassenaar and Rozendaal.

Dutch Millionaires are often married, with 71 percent having tied the knot compared to 45 percent of non-millionaires. Few, 7 percent, had also gone through a divorce, as opposed to 14 percent of non-millionaires.

Read more: More millionaires in the Netherlands

4/4/16

The Middle East : Let’s End America’s Hopeless Wars and Europe's refugee crises - by Andrew J. Bacevich

Total Failure Folks - It is all "Bla-Bla-Bla-Bla"
A hundred years ago, the armies of World War I fought to a bloody stalemate on the Western Front and desperately searched for ways to break it and gain an edge. They field-tested tanks and poison gas, rolling barrages and storm-trooper tactics.

Today, the United States is stuck in an analogous stalemate in the Middle East and Islamic world in general. And we are field-testing all manner of novelties, much like the great armies of Europe mired in the trenches: the so-called Revolution in Military Affairs and counterinsurgency, precision-guided munitions and unmanned aerial vehicles, not to mention such passing fancies as “overwhelming force,” “shock and awe,” and “air occupation.”

Yet as was the case a century ago, the introduction of some new battlefield technique does not necessarily signify progress. On the contrary, it only deepens the stalemate.

To reflect on this longest of American wars—why it goes on and on, and at such a cost of blood and treasure—is to confront two questions. First, why has the world’s mightiest military achieved so little even while absorbing very considerable losses and inflicting even greater damage on the subjects of America’s supposed beneficence? Second, why in the face of such unsatisfactory outcomes has the United States refused to chart a different course? In short, why can’t we win? And since we haven’t won, why can’t we get out?

The answer to these questions starts with questioning the premise. The tendency to see the region and Islamic world primarily as a problem that will yield to an American military solution is, in fact, precisely the problem. To an unseemly and ultimately self-destructive degree, we have endorsed the misguided militarization of U.S. foreign policy. As a consequence, we have allowed our country to be pulled into the impossible task of trying to “shape” the region through martial means.

It’s long past time to stop trying (a conclusion that even President Obama appears to be edging his way toward, judging from his recent comments to The Atlantic). 

The United States plunged militarily into the Middle East out of the mistaken belief that the privileged status that Americans take as their birthright was at risk. Way back in 1948, George Kennan, State Department director of policy planning, noted that the United States then possessed “about 50 percent of the world’s wealth but only 6.3 percent of its population.” The challenge facing U.S. policymakers, he believed, was “to devise a pattern of relationships which will permit us to maintain this position of disparity without positive detriment to our national security.” The overarching aim of American statecraft, in other words, was to sustain the uniquely favorable situation to which the United States had ascended by the end of World War II.

A half century later, that strategy succeeded and the Soviet Union collapsed.

But the passing of the Cold War period left our massive national security apparatus underemployed while rendering obsolete the policy underlying postwar U.S. military policy—energetically preparing for global war in order to prevent it.

The armed services and their various clients came face to face with a crisis of the first order. With the likelihood of World War III subsiding to somewhere between remote and infinitesimal—with the overarching purpose for which the postwar U.S. military establishment had been created thereby fulfilled—what exactly did that establishment and all of its ancillary agencies, institutes, collaborators, and profit-making auxiliaries exist to do?

The US Pentagon wasted no time in providing an answer to that question. Rather than keeping the peace, it declared, the new key to perpetuating Kennan’s position of disparity was to “shape” the global order. Shaping now became the military’s primary job. In 1992, the Defense Planning Guidance drafted under the aegis of Paul Wolfowitz spelled out this argument in detail. Pointing proudly to the “new international environment” that had already “been shaped by the victory” over Saddam Hussein the year before, that document provided a blueprint explaining how American power could “shape the future.”

The Greater Middle East was to serve—indeed, was even then already serving—as the chosen arena for honing military power into a utensil that would maintain America’s privileged position and, not so incidentally, provide a continuing rationale for the entire apparatus of national security. That region’s predominantly Muslim population thereby became the subjects of experiments ranging from the nominally benign—peacekeeping, peacemaking and humanitarian intervention—to the nakedly coercive. Beginning in 1980, U.S. forces ventured into the Greater Middle East to reassure, warn, intimidate, suppress, pacify, rescue, liberate, eliminate, transform and overawe.

They bombed, raided, invaded, occupied and worked through proxies of various stripes. In 1992, Wolfowitz had expressed the earnest hope of American might addressing the “sources of regional instability in ways that promote international law, limit international violence, and encourage the spread of democratic government and open economic systems.” The results actually produced over the course of several decades of trying have never come even remotely close to satisfying such expectations.

The events that first drew the United States military into the Greater Middle East and that seemed so extraordinary at the time—the Iranian Revolution and the Soviet occupation of Afghanistan—turned out to be mere harbingers. Subsequent upheavals have swept through the region in waves: revolutions and counterrevolutions, episodes of terror and counterterror, grotesque barbarism and vast suffering.

Through it all, a succession of American leaders—Republican and Democratic, conservative and liberal, calculating and naive—persisted in the belief that the determined exercise of U.S. military power will somehow put things right. None have seen their hopes fulfilled.

In the 21st century, the prerequisites of freedom, abundance and security are changing. Geopolitically, Asia is eclipsing in importance all other regions apart perhaps from North America itself. The emerging problem set—coping with the effects of climate change, for example—is global and will require a global response. Whether Americans are able to preserve the privileged position to which they are accustomed will depend on how well and how quickly the United States adapts the existing “pattern of relationships” to fit these fresh circumstances.

Amid such challenges, the afflictions besetting large portions of the Islamic world will undoubtedly persist. But their relative importance to the United States as determinants of American well-being will diminish, a process even today already well advanced even if U.S. national security priorities have yet to reflect this fact.

In this context, the War for the Greater Middle East becomes a diversion that Americans "and Europe, which has blindly followed the US's lead in this drama can ill afford".

12/31/14

Corporate Global Control: The Illusion Of Choice: These 10 Companies Are Responsible For Virtually Everything Around You

A chart via Reddit shows how ten huge corporations control the production of almost everything the average person buys, from food to clothes to hygienic products.

$84 billion-company Proctor & Gamble is the largest advertiser in the U.S. and owns enough brands to serve 4.8 million people around the world, according to LinkedIn.

Nestle is famous for its chocolate, but the $200 billion-corporation is also the biggest food company in the world. It also owns L’Oreal, Gerber, Diesel and even pet food makers Purina and Friskies.
Serving two billion people around the world is renowned soap-maker Unilever, which can attribute the majority of its success to its ownership of Q-tips and Skippy peanut butter.

For the complete report click here: The Illusion Of Choice: These 10 Companies Are Responsible For Virtually Everything Around You

1/30/14

Switzerland: "A reality Check" - Davos Disconnects - by Paul Stoller

Since its inception the World Economic Forum (WEF) in Davos, Switzerland has attracted an ever-increasing amount of media attention. This year was no exception.

Four thousand high-powered business executives, global leaders (presidents and ministers) not to forget celebrities like Matt Damon and Goldie Hawn converged on the exclusive Swiss resort to attend sessions, to wine, to dine, to schmooze, to make deals and to be entertained.

Amid the hoopla these "stakeholders" discussed the dangers of technologically induced employment reduction, the possibility of doing business with Iran and the increasing stability of the Eurozone.

This year Davos attendees also discussed the social responsibility of global elites to confront and remedy the persistent presence of income inequality.

Focusing on the Davos debate about the distribution of wealth, Katrin Bennhold of The New York Times quoted Pope Francis, who challenged the attendees to change the dynamic of income inequality.

The message of the Pope said: "The growth of inequality demands something more than economic growth, even though it presupposes it," Pope Francis said in a message read by one of his cardinals at the conference. "It also calls for decisions, mechanisms and processes directed to a better distribution of wealth, the creation of sources of employment and an integral promotion of the poor which goes beyond a simple welfare mentality.

In addition the Pope added his plea to the conference attendees, "I ask you to ensure that humanity is served by wealth and not ruled by it."

Given the tone and texture of his papacy, it is clear that Pope Francis has direct experience of poverty. Can we say the same for the movers and shakers of the global elite who attended the WEF? How can these economic leaders, the vast majority of whom have little direct experience with economic hardship, have any idea what to do about it? A one-hour radically chic sensitivity session is not likely change a corporate ethos in which the world is ruled rather than served by wealth.

Which leads me to a Davos disconnect -- about assumptions. Global elites tend to look upon the world through economic lenses. This practice makes perfect economic sense, but fails to consider sufficiently, as does Pope Francis and most social scientists, the social dimensions of economic relations. From the beginnings of complex society thousands of years ago, economic and social inequality have been inextricably intertwined. Indeed most of our social systems have been constructed to reinforce social inequality rather than to bridge the gap between the haves and have-nots.

Might it not be better for Davos delegates to spend more time among those whose worlds are in desperate states? If that were the case the aforementioned Davos disconnects would be less glaring. If that were the case, WEF dialogues might compel a degree of real economic and social change.

Now that would be a breath of fresh mountain air.

Read the complete report: Davos Disconnects | Paul Stoller

6/24/13

Global Economy: Paul Krugman: Greg Mankiw Forgets 'We Are A Much More Unequal Society Now'

Paul Krugman thinks Harvard economist Greg Mankiw forgot an important detail in his new paper, "Defending The One Percent": Social inequality just keeps growing.

The Nobel Prize-winning economist and New York Times columnist wrote in blog posts Saturday and Sunday that rising social inequality makes it less likely for children born into poor families to earn more money later in life. Krugman illustrates this point with a chart from Miles Corak, an economics professor at the University of Ottawa, that shows a widening gap between how much money the rich and poor spend on their children.

Earlier this month, Mankiw wrote that the top 1 percent of society is richer because they contribute more to society and in essence earn more as a result. But, as Krugman points out, the former economic adviser to President George W. Bush fails to acknowledge how much society has changed in the last 50 years and how those changes lead to differing opportunities for children, depending on the family into which they are born.

"It was a different country, one in which ordinary public high schools were often pretty good, in which good higher education was available cheaply at state universities, in which almost none of the vast apparatus of tutors and private instruction now used by the elite existed," Krugman wrote, referring to how America has changed since 1958, when Mankiw was born.

As Krugman notes, he is not the first to take aim at Mankiw's defense of the richest members of society. Dean Baker, co-director of the Center for Economic and Policy Research, points out that even if the top 1 percent deserve to earn more because of their contributions to society, policy plays a large role in deciding how much they are rewarded for those contributions.

Read more: Paul Krugman: Greg Mankiw Forgets 'We Are A Much More Unequal Society Now'

5/21/13

Microsoft: Bill Gates is once again the richest person in the world - by Shawn Knight

Bill Gates is once again the richest man in the world thanks to the recent success of the company he helped create. The 57-year-old Microsoft co-founder surpassed Mexican investor Carlos Slim yesterday to reclaim the title according to the Blooomberg Billionaires Index as stock value in Microsoft hit a five-year high twice this week.

Microsoft is riding a wave of success that has seen shares climb 28 percent so far this year. Gates owns a substantial amount of stock in Microsoft which as of yesterday, put his net worth at $72.7 billion – an increase of 15 percent year to date. Keep in mind that Gates has already donated some $28 billion of his fortune to the Bill & Melinda Gates Foundation, a charity that he runs with fellow billionaire Warren Buffett.

Interestingly enough, however, less than 25 percent of his total fortune is held in shares of Microsoft. As of late April, the NASQAD revealed Gates held more than 400 million shares in the company.

It’s the first time Gates has been the wealthiest man on the planet since 2007 when he lost the title to Slim. The 73-year-old investor has watched share value in America Movil – the largest wireless provider in the Americas - slide 14 percent thus far this year. Mexico’s Congress recently passed a law designed to regulate the telecom industry which could force Slim to either break up the company or charge lower rates for service.

Read more: Bill Gates is once again the richest person in the world - TechSpot

10/27/12

Britain: Wealth, Capital and Power -"The Rich Don’t Get Richer" - by John Rentoul

I once wrote a book called The Rich Get Richer, which was about a period, the 1980s, when it was true.

Since then, I have spent much of my time trying to point out that, despite what everybody knows, the degree of inequality in Britain has stayed about the same since the sharp increase during the Great Thatcher Divisiveness. In particular, I have pointed out that it was a remarkable achievement for the New Labour governments to have avoided any significant increase in inequality in an open economy such as Britain’s.

One problem with this defence of Labour’s record is that, while information on the distribution of incomes is of high quality, the only consistent and comprehensive data series on the distribution of wealth was abandoned in 2003 because officials at HM Revenue & Customs decided it was “not suitable” for estimating the distribution of wealth. I reported this at the time.*

The reasons are explained more fully in the HMRC’s UK Personal Wealth Statistics 2008-10, which refers us instead to the Office for National Statistics’ Wealth and Assets Survey, the first of which was conducted in 2006-08. I had ignored it because, as the first survey of its kind, it did not tell us anything about trends over time.

However, in July this year the results of the second wave of the Wealth and Assets Survey were published, covering 2008-10. A summary is here, but the interesting bit is Chapter 2, which includes this table:

ATT00001 The Rich Dont Get Richer

Read more: The Rich Don’t Get Richer | John Rentoul | Independent Eagle Eye Blogs

5/12/12

The World's Richest CEOs

The world’s richest chief executives have all either founded or built companies from the ground up, in many cases transforming their industries.

While some of them inherited wealth, most came from modest beginnings. One started as a newspaper boy, another as an insurance salesman, a third as a mortgage broker.

Our list of the 10 richest CEOs spans across four generations; the youngest CEO on the list was born in 1984, the oldest in 1930.

The ranking is based on net worth figures from Wealth-X, a research firm that provides information on ultra high net worth individuals to private banks and consulting firms. Each chief executive's net worth was calculated as of March 16, 2012 and consists of public and private holdings, estimated cash salaries, dividends, and all other investible assets.

Read more: The World's Richest CEOs - CNBC

10/6/11

Power in America: based on local and global economic inequality?

It may come as a surprise to many people but a recent study (Norton & Ariely, 2010) showed that most Americans (high income or low income, female or male, young or old, Republican or Democrat) have no idea on just how concentrated the wealth distribution actually is in the USA.

Generally speaking, wealth is the value of everything a person or family owns, minus any debts. However, for purposes of studying the wealth distribution, economists define wealth in terms of marketable assets, such as real estate, stocks, and bonds, leaving aside consumer durables like cars and household items because they are not as readily converted into cash and are more valuable to their owners for use purposes than they are for resale.We also need to distinguish wealth from income.

Income is what people earn from work, but also from dividends, interest, and any rents or royalties that are paid to them on properties they own. In theory, those who own a great deal of wealth may or may not have high incomes, depending on the returns they receive from their wealth, but in reality those at the very top of the wealth distribution usually have the most income.

Based on the available statistics ((Who rules America) we see that in terms of types of financial wealth, the top one percent of households have 38.3% of all privately held stock, 60.6% of financial securities, and 62.4% of business equity. The top 10% have 80% to 90% of stocks, bonds, trust funds, and business equity, and over 75% of non-home real estate. Since financial wealth is what counts as far as the control of income-producing assets, we can say that 10% of the US population in fact own the United States of America.

The income distribution also can be used as a power indicator.This is not as concentrated as the wealth distribution, but the top 1% of income earners did receive 17% of all income in the year 2003 and 21.3% in 2006. That's up from 12.8% for the top 1% in 1982, which is quite a jump, and it parallels what is happening with the wealth distribution. This is further support for the inference that the power of the corporate community and the upper echelons of the population have been increasing in recent decades.

Thanks to a 2006 study by the World Institute for Development Economics Research -- using statistics for the year 2000 -- we now have information on the wealth distribution for the world as a whole, which can be compared to the United States and other well-off countries. The authors of the report admit that the quality of the information available on many countries is very spotty and probably off by several percentage points, but they compensate for this problem with very sophisticated statistical methods and the use of different sets of data. With those caveats in mind, we can still safely say that the top 10% of the world's adult citizens control about 85% of global household wealth -- defined very broadly as all assets (not just financial assets), minus debts. 

Bottom line: Economic inequality is not only a US problem but also a Global one. It will require a complete revamp and a rewrite of all economic textbooks. This will happen either voluntarily or by force. Unfortunately the window of opportunity for Governments and International Institutions to make these changes on a voluntarily basis is becoming very limited   
 
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