This article begins to explain how Americans aren't saving enough present day. The likelihood of running out of money during retirement is very high. Yes, they may have a large sum of money saved up, on average an average family will have about $104,000, to live the life that they are accustomed to living before retirement. In the article they suggests that working adults need to put more money aside in investments in order to be well supplied for retirement. In turn, they blame Wall Street for this struggle. But they are right. With Social Security funds pretty much disappearing then people are being forced to take the responsibility on their shoulders and invest and its inevitable. ""The goal: to get Americans to put their money in low-cost index funds." I agree.
http://www.nytimes.com/2015/03/04/business/americans-arent-saving-enough-for-retirement-but-one-change-could-help.html?ref=economy
Thursday, March 5, 2015
Wednesday, March 4, 2015
Happiest Global Economies?
http://www.bloomberg.com/news/articles/2015-03-03/the-15-happiest-economies-in-the-world
This week Bloomberg calculated the "misery index". As one can assume, this composite index contains measurements from inflation to unemployment that cause negative utility to consumers. Thailand and Switzerland were deemed the least miserable countries. The United States placed eighth. Bloomberg credited unemployment as the reason that the United States did not "medal" in their rankings. Denmark also had a very strong showing in sixth place, followed by China. Denmark is forecasted to lead the world in GDP per capita this year at a whopping $67,619. Thailand's place at the top was surprising, but this was due to an unemployment rate of under 1%. Additionally, this low unemployment rate has failed to initiate inflation. If you are interested, Venezuela was ranked as the most miserable country.
I found the title of this article slightly misleading. It was titled "The 15 Happiest Economies in the World", but this ranking was based off of the lowest countries in the "misery index". This backward system appears to be ranking countries as the least worst. While I question the system, these figures can be extended to our study of growth as an outcome of an economic system. The traditional indicators do not capture well-being or happiness. For example Bhutan is using a gross national happiness index (GNH) as an indicator of progress in an economy. There definitely is room to explore factors that indicate genuine progress and well-being that are not captured by GDP. What do you think?
This week Bloomberg calculated the "misery index". As one can assume, this composite index contains measurements from inflation to unemployment that cause negative utility to consumers. Thailand and Switzerland were deemed the least miserable countries. The United States placed eighth. Bloomberg credited unemployment as the reason that the United States did not "medal" in their rankings. Denmark also had a very strong showing in sixth place, followed by China. Denmark is forecasted to lead the world in GDP per capita this year at a whopping $67,619. Thailand's place at the top was surprising, but this was due to an unemployment rate of under 1%. Additionally, this low unemployment rate has failed to initiate inflation. If you are interested, Venezuela was ranked as the most miserable country.
I found the title of this article slightly misleading. It was titled "The 15 Happiest Economies in the World", but this ranking was based off of the lowest countries in the "misery index". This backward system appears to be ranking countries as the least worst. While I question the system, these figures can be extended to our study of growth as an outcome of an economic system. The traditional indicators do not capture well-being or happiness. For example Bhutan is using a gross national happiness index (GNH) as an indicator of progress in an economy. There definitely is room to explore factors that indicate genuine progress and well-being that are not captured by GDP. What do you think?
China's big chess move against the U.S: Latin America
http://money.cnn.com/2015/03/04/news/economy/china-latin-america-relations-united-states/index.html
Over the past year, Chinese banks have increased their investments in Latin America by 71% and the country plans to double its trade volume with the region over the next decade. China has also helped to fund Argentina's nuclear power plant, Bolivia's first satellite, and more. This relationship is beneficial to Latin America and China because Latin American countries badly need cash and China wants more economic influence with countries near the U.S. However, there are some signs that the China-Latin America relationship is starting to strain. The demand for goods in China, paired with the end of the commodity boom is slowing economic ties, but China is committed to a long-term relationship.
I think it is important that the US invests more in Latin America. Over the last ten years, US investment in Latin America has gone down while investment in Asia has skyrocketed. It is important the US finds an appropriate balance between the two, so that we keep our allies closer to home.
Over the past year, Chinese banks have increased their investments in Latin America by 71% and the country plans to double its trade volume with the region over the next decade. China has also helped to fund Argentina's nuclear power plant, Bolivia's first satellite, and more. This relationship is beneficial to Latin America and China because Latin American countries badly need cash and China wants more economic influence with countries near the U.S. However, there are some signs that the China-Latin America relationship is starting to strain. The demand for goods in China, paired with the end of the commodity boom is slowing economic ties, but China is committed to a long-term relationship.
I think it is important that the US invests more in Latin America. Over the last ten years, US investment in Latin America has gone down while investment in Asia has skyrocketed. It is important the US finds an appropriate balance between the two, so that we keep our allies closer to home.
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