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Spanx Billionaire Sara Blakely On Giving Her Fortune Away
Warren Buffett & Bill Gates on Measuring Performance, Wealth, Billionaires, Financial Crisis
as “the process of quantifying the efficiency and effectiveness of past actions”, while Moullin defines it as “the process of evaluating how well organisations are managed and the value they deliver for customers and other stakeholders”. Discussion on the relative merits of these definitions appeared in several articles in the newsletter of the Performance Management Association.
Wikipedia – Performance Measurement
The wealth effect is an economic term, referring to an increase (decrease) in spending that accompanies an increase (decrease) in perceived wealth.
The effect would cause changes in the amounts and distribution of consumer consumption caused by changes in consumer wealth. People should spend more when one of two things is true: when people actually are richer, objectively, or when people perceive themselves to be richer—for example, the assessed value of their home increases, or a stock they own goes up in price.
Demand for some goods (especially Inferior goods) typically decreases with increasing wealth. For example, consider consumption of cheap fast food versus steak. As someone becomes wealthier, their demand for cheap fast food is likely to decrease, and their demand for more expensive steak may increase.
Consumption may be tied to relative wealth. Particularly when supply is highly inelastic – or in the case of monopoly – one’s ability to purchase a good may be highly related to one’s relative wealth in the economy. Consider for example the cost of real estate in a city with high average wealth (for example New York or London), in comparison to a city with a low average wealth. Supply is fairly inelastic, so if a helicopter drop (or gold rush) were to suddenly create large amounts of wealth in the low wealth city, those who did not receive this new wealth would rapidly find themselves crowded out of such markets, and materially worse off in terms of their ability to consume/purchase real estate (despite having participated in a weak Pareto improvement). In such situations, one cannot dismiss the relative effect of wealth on demand and supply, and cannot assume that these are static. (see also General equilibrium).
However, according to David Backus, an NYU economist, the wealth effect is not observable in economic data, at least in regards to increases or decreases in home or stock equity. For example, while the stock market boom in the late 1990s (q.v. dot-com bubble) increased the wealth of Americans, it did not produce a significant change in consumption, and after the crash, consumption did not decrease.
Economist Dean Baker disagrees and says that “housing wealth effect” is well-known and is a standard part of economic theory and modeling, and that economists expect households to consume based on their wealth. He cites approvingly research done by Carroll and Zhou that estimates that households increase their annual consumption by 6 cents for every additional dollar of home equity.
The wealth effect and the Paradox of Thrift are contradictory. The paradox assumes, incorrectly, that people will spend when they feel wealthy, based on the wealth effect, but not when they are actually more wealthy.
Wikipedia – The Wealth Effect
Buffett Grandson: Our Plans to Change the World
Sept. 17, 2013 (Bloomberg) — Howard W. Buffett, executive director of the Howard G. Buffett Foundation, talks about his public management class at Columbia University and new book “40 Chances: Finding Hope in a Hungry World.” Buffett is the son of Berkshire Hathaway Inc. Director Howard Buffett and grandson of Chairman Warren Buffett. He speaks with Betty Liu on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)
How to Become a Culture-Changer: Evan Grae Davis
Husband, father, adventurer, activist; Evan Grae Davis has traveled the world with camera in hand for nearly two decades advocating for social justice through writing and directing short documentaries and educational videos championing the cause of the poor and exploited.
Evan recently released his first feature length documentary film asking why nearly 200 million women are missing in the world today– killed, aborted and abandoned simply because they are girls.
It’s a Girl is currently screening in hundreds of locations around the world, including colleges and universities, film festivals, at the European and British Parliaments and, recently, on Capitol Hill in Washington DC. With nearly half a million people joining the cause to end gendercide so far as a result of his film, Evan is on a mission to mobilize a movement to restore dignity and value to the girls of India and China.
What I Learned While Making a Movie About Happiness: Roko Belic
Who Is the Richest Person in the World? Carlos Slim on International Philanthropy (2007)
Carlos Slim Helú (born January 28, 1940) is a Mexican business magnate, investor, and philanthropist. Slim has been ranked by Forbes as the richest person in the world since 2010. His extensive holdings in a considerable number of Mexican companies through his conglomerate, Grupo Carso, SA de CV, have amassed interests in the fields of communications, technology, retailing, and finance. Presently he is the chairman and chief executive of telecommunications companies Telmex and América Móvil.
América Móvil, which in 2010 was Latin America’s largest mobile-phone carrier, accounted for around US$49 billion of Slim’s wealth by the end of 2010. His corporate holdings as of March 2013 have been estimated at US$73 billion.
In 1995 he established Fundación Telmex, a broad-ranging philanthropic foundation. This followed the creation of his eponymous non-profit philanthropic foundation, Fundación Carlos Slim Helú in 1986. In 2007 Slim announced that the latter body had been provided with an asset base of $4 billion and that it would be establishing Carso Institutes for Health, Sports and Education. Furthermore, it was to work in support of an initiative of Bill Clinton to aid the people of Latin America. Because Mexican foundations are not required to publish their financial information, it is not possible to confirm Slim’s claims of charitable giving through a public source.
Among the activities of Fundación Telmex has been the organisation of Copa Telmex, an amateur sports tournament which in 2007 was recognised by Guinness World Records as having the most participants of any such tournament in the world, a record which it extended in 2008. Together with Fundación Carlos Slim Helú, this organisation announced in the same year that it was to invest more than $250 million in Mexican sports programmes, from grass-roots level to Olympic standard.
The Fundación Carlos Slim Helú sponsors the Museo Soumaya in Mexico City which contains the world’s second-largest (and largest private) collection of Rodin sculptures, including The Kiss. Named after Slim’s late wife, Soumaya Domit, the Museo Soumaya holds 66,000 pieces, including religious relics, works by Leonardo Da Vinci, Pablo Picasso, Pierre-Auguste Renoir, and coins from the viceroys of Spain. In particular, the museum holds the largest Dalí collection in Latin America. It was inaugurated in 2011 by the President of Mexico, Nobel Prize laureates and other celebrities.
In 2000, Slim, along with ex-broadcaster Jacobo Zabludowsky organized the Fundación del Centro Histórico de la Ciudad de México A.C. (Mexico City Historic Downtown Foundation), with the objective to revitalizing and rescuing Mexico City’s historic downtown area to enable more people to live, work and find entertainment there. He has been Chairman of the Council for the Restoration of the Historic Downtown of Mexico City since 2001.
In 2011 he, along with the President of Mexico, Mexico City Mayor and Mexico City Archbishop, inaugurated the first phase of Plaza Mariana close to Basilica de Guadalupe. The complex, whose construction was funded by Slim, includes an evangelization center, museum, columbarium, health center, market and parking lot.
In May 2011, Slim was mentioned in Forbes’ World’s Biggest Givers after donating $4 billion to his foundation.
Bill Gates On His New Idea: Catalytic Giving
The Garden Mindset: Michael Lindenmayer
Living A Family Philanthropic Legacy: Conversation with Anne Springs Close
Moderated by: Virginia Esposito, President of the National Center for Family Philanthropy
An intimate conversation with Mrs. Anne Springs Close, Chairman of The Springs Close Foundation, who will share her experiences, challenges, surprises, and lessons learned in philanthropy. This conversation will inspire philanthropists who shape the social sector and work to leave behind similar legacies of charitable success and generosity.
Justin Bieber: Budding Venture Capitalist
The pop star is putting his money into tech startups like Spotify.
Prospecting and Philanthropic Planning
Author Margaret May Damen, CLU®, ChFC®, CFP®, Founder and President of the Institute for Women and Wealth and two faculty members from The American College discuss who the most likely prospects for philanthropic planning services are and how to find them.