“If, in 1970, you invested $100 in a fund tracking the S&P index, then by 2023 the investment would have grown to $22,000, far more than it would have in other assets such as real estate or government and corporate bonds. Case closed, right? Put your money into an index fund and simply leave it there.”
How much of national income goes to the richest 1%?
“You might expect these numbers to be strongly correlated to a country’s level of economic development. But this isn’t always the case. In the United States, for example, 1% of its population takes home 21% of national income. This is relatively high globally.”
How much of national income goes to the richest 1%?
“You might expect these numbers to be strongly correlated to a country’s level of economic development. But this isn’t always the case. In the United States, for example, 1% of its population takes home 21% of national income. This is relatively high globally.”
Kicking around an idea for "fixing" US complex/abuse-prone partnership tax regime:
one Trade or Business tax that applies to all businesses, in whatever form incl. self-employment
C corporation law applies EXCEPT dividends not taxable
Rate equal to highest individual income tax rate
Everybody gets one layer of tax. Self-employed can get benefit of lower individual rates by paying compensation (deemed in case of sole prop) No basis moving or other shenanigans.
Downsides, which are sort of the flip side of the "shenanigans":
no tax-free way to take appreciated property back out of a business once contributed. But maybe a provision allows distribution tax-free to the owner who contributed property. Let people mulligan but don't let them move stuff around.
no way to get losses out from, e.g. real estate businesses. But maybe let people flexibly group businesses. Can't offset your wages but can offset your other business.
@bibliolater@economics Thats hilarious, coming from a country which exported all its industry to China and is now unable to produce paper masks and rubber gloves during a pandemic.
.... now can you further expand on what you mean by 'prosperity'?
Prosperity in what sense? Just financial prosperity? Prosperity ALL or for a select few? Is there a time limit on that, or is this intended to be "prosperity for said nation's future generations in perpetuity"?
“Topics include functions of capital markets and financial intermediaries, asset valuation, fixed-income securities, common stocks, capital budgeting, diversification and portfolio selection, equilibrium pricing of risky assets, the theory of efficient markets, and an introduction to derivatives and options.”
“Topics include functions of capital markets and financial intermediaries, asset valuation, fixed-income securities, common stocks, capital budgeting, diversification and portfolio selection, equilibrium pricing of risky assets, the theory of efficient markets, and an introduction to derivatives and options.”
Four tips to avoid being bamboozled by political statistics and data
With a plethora of elections around the world in 2024, voters considering their options can expect to be presented with all kinds of numbers and statistics aimed at giving credibility to various claims from various parties. But data, graphs, percentages and surveys can be misleading or manipulated.
So here are four things to remember if you’re trying to navigate what’s behind the numerical spin – or what Mark Twain (and others) referred to as “lies, damned lies and statistics”.
@economics Two #economists were walking down the street. The first economist spotted a £20 note on the ground and stopped to pick it up. The second economist asked "why are you stopping?". The first economist said "to pick up this £20 note". The second economist replied "don't be stupid, if there was a £20 note on the ground somebody would already have taken it". The first economist considered this for a moment, then nodded, and they both walked on.