Vol. 4, 2010-22 | August 5, 2010 | http://dx.doi.org/10.5018/economics-ejournal.ja.2010-22 Housing Wealth Isn’t Wealth Willem H. Buiter Citigroup, London Abstract A fall in house prices due to a change in fundamental value redistributes wealth from those long housing (for whom the fundamental value of the house they own exceeds the present discounted value of their planned future consumption of housing services) to those short housing. In a closed economy representative agent model (the special
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Political and Economic freedom is not an easy task to examine but it's not a difficult idea to grasp. What is freedom? Freedom starts with the ability to have self-control. In a free society, everyone has legal control of their mind and body as there is "an equal distribution of legal rights and in which each and every person has as much legal rights as possible" (Hughes). The concept of freedom refers to a certain type of political empowerment such as equal empowerment. Freedom entitles political
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The gap between rich and poor Since 2008, the investigated bank, Lehman Brothers has gone bankrupt. It was one of the most significant turning points of the economic crisis of 2008. Because of the economic crisis, the economy of the U.S. has begun to fall. Even though wealthy people lost some of their profit due to the economic crisis, it doesn’t affect a lot for their property. Poor people are most affected by the economic crisis. They have to face a lot of problems, including unemployment and
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Depression Cycle Strategy : Money How to Get It and Keep It Adopted from Doug Casey, Chairman, Casey Research Regardless of the cycle at present and even if you are already wealthy, some thought on this topic is worthwhile. What would you do if some act of God or of government, a catastrophic lawsuit, or a really serious misjudgment took you back to Square One ? One thing about a real depression is that everybody loses. Thus, the winners are those who lose the least. Since October 1971 we
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Krystal Graham “Occupy Wall Street” Business Ethics Professor: Steven Curry “Occupy Wall Street” The “Occupy Wall Street” movement has become a big deal since it began in the fall of 2011. This movement was inspired by international protests, with thousands arriving in New York City answering the call, soon spreading to well over 500 cities. I would like to discuss more of the details of the movement, the moral and economic implications, as well as the different ethics theories to see
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viable and many “facts” were skewed. It was made in a very intelligent way though, to make what they were saying seem like they were good facts and statistics. One thing that really stood out when I was watching was when they were talking about the Bush tax cuts and how rich people saved more money from those cuts then poor people. They do not explain percentages though. For example, say person A makes $10 and person B makes $100. If person A saves 10% of that, he is saving $1. If person B saves 5%, less
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The Finance & Accumulation Protocol to achieve financial independence -The Basics of Money and its accumulation- "You will never achieve wealth in spending money, wealth can only be achieved in saving money." -Helmut Ament- Why do we Fail with Money? We fail with Money and we don’t build wealth and financial security because we make a few key, consistent errors. These are common errors that are caused by our mental “hard-‐wiring” and our inability to calculate the long-term
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philanthropists also tend to give to popular nonprofit organizations that do not really need their contributions. The extremely wealthy give most of their donations to local charities, so that they get recognition for future business connections, as well as tax
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Many people work very hard, but they never seem to earn enough. In Rich Dad, Poor Dad, Robert Kiyosaki explains how to escape this "rat race" and achieve financial independence. According to our general perception everybody should go to school, get high grades and then get a good job, right? Wrong! Well, at least if financial independence is what you are aiming at. Our education system is the number one cause of why so many people struggle financially. Schools teach people how to work for money,
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Disparity in our Schools If economics has taught us anything it is that throughout human history wealth is unusual and poverty is normal. This can be seen just by looking at the distribution of the world’s income; and yet because of the difference wealth makes on people’s lives it is still something that everyone strives to have. The reason everyone strives so hard to gain wealth is because of the fact that if you have money you can better your own and your family’s life. In many countries including
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