Saturday, 24 June 2017

Pension Liabilities - serious problem but overhyped

No one will deny that with an aging population and dropping birth rates the pension systems in many - if not most - countries is in serious trouble sooner or later. But dramatic talk of tens of billions of 'unfunded' liabilities is off the mark. Of course one can look at the spending side, add up the expected numbers and discount them to the present. All very well, but then you have to do the same for the other side of the equation. No individual would say he has 'unfunded' liabilities by adding up his expected lifetime spending, at age 35 for example. Doing this would find nearly all citizens are technically bankrupt. So please listen, economists, politicians, journalists and assorted 'experts'. Try to solve the REAL pension problems rather than engage in scaremongering for political purposes. Prevent early retirement (esp in the public sector), prevent abuses in the corporate sector (huge pensions for a few fat cats), prevent costly subsidies on pension saving by the well-off, prevent expensive private pension schemes that can charge high fees while being treated to lavish tax and regulatory support that only benefits providers.
Illinois victim of dysfunctional public pension system

Friday, 16 June 2017

8 billionaires have the combined wealth of half the world's population

Just another reason why it is pathetic that the economics tribe - Universities, Think Tanks - fiddles around with tiny changes in GDP, employment or interest rates while missing the elephant in the (political economy) room!
These 8 billionaires have the combined wealth of half the world's population

Thursday, 15 June 2017

Millionaires own a record 45% of the world's wealth

The really frightening thing is that this trend is continuing! We don't need explanations but solutions! Maybe Economists and Policy Makers should not focus on the next tiny shift in GDP growth but on the BIG picture - how to reverse this trend to ever-more concentration in the world's wealth! What do all the talking heads on CNBC and Bloomberg etc have to say? Or tenured professors sit in sheltered glasshouses and flit from conference to conference - pocketing handsome fees - while neglecting their students.
Millionaires own a record 45% of the world's wealth — and their share is growing

Tuesday, 13 June 2017

Growing Employer Abuse of the Non-Compete Clause

These clauses are just a tool to prevent competition, are not only hurting the workers concerned but as a consequence also the consumers. In addition they build a moat that allows the 1% to prosper at the expense of the many. Blanket abolishment is the only solution to this abuse of power.
Growing Employer Abuse of the Non-Compete Clause

The 11 most expensive yachts in the world

Thank God for Tax and Copyright laws that favor the 0.01%!
The 11 most expensive yachts in the world

Tuesday, 6 June 2017

Corporate Mergers - positive or negative for Economy?

The near-permanent dealmaking has reached frenetic proportions during the past 20 years. Are all these mergers really necessary to sustain a growing economy that benefits employers and workers alike? Is Anti-Trust really up to the challenge of assessing all transactions? Should there be higher tax burdens imposed?
CITI: 'One of the scariest charts to look at' could create major concerns about the market

Monday, 5 June 2017

Universal Basic Income - logical mistake

If one makes the extreme assumption that all work will be done by machines, - who is going to be able to buy their services? So there is something missing in all the talk of automation taking over all the work.
niversal Basic Income Is Neither Universal Nor Basic - Bloomberg