Warren Buffett & Bill Gates on Measuring Performance, Wealth, Billionaires, Financial Crisis
Performance measurement is the process of collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component. It can involve studying processes/strategies within organizations, or studying engineering processes/parameters/phenomena, to see whether output are in line with what was intended or should have been achieved.
Performance measurement has been defined by Neely 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
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.
The Garden Mindset: Michael Lindenmayer
The Economical Gap: Distribution of wealth in China
The focus is on the economical gap in China. More specifically how the distribution of Chinese wealth is a huge problem.
Paul Pholeros: How to reduce poverty? Fix homes
In 1985, architect Paul Pholeros was challenged by the director of an Aboriginal-controlled health service to “stop people getting sick” in a small indigenous community in south Australia. The key insights: think beyond medicine and fix the local environment. In this sparky, interactive talk, Pholeros describes projects undertaken by Healthabitat, the organization he now runs to help reduce poverty–through practical design fixes–in Australia and beyond.
Paul Pholeros is a director of Healthabitat, a longstanding effort to improve the health of indigenous people by fixing their living environment and housing.
WHY YOU SHOULD LISTEN TO HIM?
“Change comes slowly,” says architect Paul Pholeros. He should know; he has spent the last 30 years working on urban, rural, and remote architectural projects throughout his native Australia and beyond. In particular, he is focused on improving the living environments of the poor, understanding that environment plays a key and often overlooked role in health.
An architect himself, Pholeros met his two co-directors in the organization Healthabitat in 1985, when the three were challenged by Yami Lester, the director of a Aboriginal-controlled health service in the Anangu Pitjatjantjara Lands in northwest South Australia, to “stop people getting sick.” The findings from that project have guided their thinking ever since, as Pholeros and his partners work to improve sanitation, connect electricity, and provide washing and water facilities to indigenous communities. Above all, the teams focus on engaging these local communities to help themselves–and to pass on their skills to others. In this way, a virtuous circle of fighting poverty is born.
Since 2007, Healthabitat has expanded its work beyond Australia, working on similar projects in the Kathmandu Valley in Nepal. In 2011, the firm was awarded the international UN Habitat and Building and Social Housing Foundation’s World Habitat Award, and a Leadership in Sustainability prize from the Australian Institute of Architects. In 2012, Healthabitat was one of the six Australian representatives at the Venice International Architectural Biennale.
“Paul Pholeros is an architect specifically honoured for his 30 years’ work in indigenous housing. His firm, Healthabitat, set up in 1987 with the medic Paul Torzillo and the public health officer Stephan Rainow, does not build new houses but simply “fixes” ones that are not working. They have developed a testing kit that fits in a suitcase, a preferred list of robust, low-maintenance appliances and a standard set of tools, so that local people can be trained in the work. In the past decade they have fixed 6500 houses across remote Australia and a new two-year contract covers 600 more. So you’d have to say he’s across the issue.” Elizabeth Farrelly, the Sydney Morning Herald
80% of Americans only share 7% of the money in the US
Mexico’s wealth gap
Billionaires profit during jobless recovery
The stock market is enjoying record highs, and the mainstream media is touting a recovery in the nation’s housing sector. There are more billionaires than ever around the world, but this economic boon is not being felt in all parts of the U.S. economy. While the wealthiest have seen their paychecks soar, the pain on Main Street continues as Americans struggle to find work and keep their homes.
Bono: The good news on poverty (Yes, there’s good news)
Human beings have been campaigning against inequality and poverty for 3,000 years. But this journey is accelerating. Bono “embraces his inner nerd” and shares inspiring data that shows the end of poverty is in sight … if we can harness the momentum.
Bono, the lead singer of U2, uses his celebrity to fight for social justice worldwide: to end hunger, poverty and disease, especially in Africa. His nonprofit ONE raises awareness via media, policy and calls to action.
WHY YOU SHOULD LISTEN TO HIM?
Irreverent, funny, iconoclastic and relentless, Bono has proven himself stunningly effective in encouraging and cajoling the world’s most powerful leaders to take seriously the challenge of disease and hunger and seize the historic opportunity we now have to beat extreme poverty, especially in Africa, through technological innovation, smart aid, transparency and investments which put citizens in charge.
As lead singer of U2, Bono performed at Live Aid in 1985, which inspired him to travel to Ethiopia with his wife, Ali. There they spent several weeks helping with a famine relief project. The experience shocked him and ignited a determination to work for change. In Bono’s own words, “What are the blind spots of our age? It might be something as simple as our deep-down refusal to believe that every human life has equal worth”. In 2005, the year of Make Poverty History, Bono became one of the inaugural winners of the TED Prize; he used his wish to raise awareness and inspire activism.
In 2002, he co-founded DATA (Debt, AIDS, Trade, Africa), which later became the advocacy and campaign organization, ONE. Today ONE has more than 3 million members who pressure politicians around the world to improve policies to empower the poorest. Thanks to these efforts, along with those of partners and grassroots leaders in Africa, these policies have delivered results. For example, eight million people are now on life preserving antiretoviral medications, malarial death rates have been halved in eight target countries, 50 million more children are in school and 5.4 million lives have been saved through vaccines.
In 2006, Bono and Bobby Shriver launched (RED) to engage the private sector in the fight against AIDS in Africa. (RED) Partners direct a portion of their profits from (RED)-branded products, services and events directly to the Global Fund to Fight AIDS, Tuberculosis and Malaria. In just six years, (RED) has contributed more than $200 million – every penny of which goes directly to HIV/AIDS programs with the goal of eliminating mother-to-child transmission of HIV. To date, (RED) dollars have helped the lives of more than 14 million people in Africa through education, testing, counseling, and treatment programs.
Bono also co-founded EDUN with his wife Ali. EDUN is a global fashion brand which does business in an number of countries in Africa and beyond, sourcing materials and manufacturing clothing. In Uganda, EDUN is supporting over 8,000 farmers in their move from subsistence to sustainable business practices.
Granted knighthood in 2007 and dubbed a “Man of Peace” in 2008, Bono mobilized in 2010 following the devastating earthquake in Haiti, performing the song “Stranded” with bandmate The Edge — and Rihanna and Jay-z — during the for Hope for Haiti Now telethon. The event was watched by 83 million people in the United States alone and raised a reported $58 million for relief.
Bono’s journey in activism spans a generation and where he is coming from, and above all where he is going, is something we should all pay close attention to.
Esme E. Deprez discusses “Poor Forever?” on CNN
Esme E. Deprez, a reporter at Bloomberg News and Bloomberg Businessweek, discusses her article, “Poor Forever: Connecticut‘s Ribbon of Hardship,” on CNN’s Starting Point with Soledad O’Brien on July 5, 2012. The article (http://www.businessweek.com/articles/2012-07-05/connecticuts-ribbon-of-hardship) explores the growing gap between rich and poor in the U.S. and highlights the latest research on income inequality and social/economic mobility, which shows that the more unequal a society is, the greater the likelihood that children will remain in the same economic standing as their parents.
Dr. Wayne Dyer is an internationally renowned author and speaker in the field of self-development. He is the author more than 30 books, has created numerous audio programs and videos, and has appeared on thousands of television and radio shows. Wayne holds a doctorate in educational counseling from Wayne State University and was an associate professor at St. John’s University in New York.
At her Harvard commencement speech, “Harry Potter” author JK Rowling offers some powerful, heartening advice to dreamers and overachievers, including one hard-won lesson that she deems “worth more than any qualification I ever earned.”
JK Rowling penned the bestselling Harry Potter page-turners — a spellbinding, seven-installment fantasy of wizards, warlocks and decidedly British texture that brought her from rags to riches.
Why you should listen to her:
A single mother who battled poverty and depression as she struggled to launch her writing career, Joanne “JK” Rowling was to become perhaps the most famous contemporary fiction writer in the world, with her Harry Potter series of children’s books — a chronicle of the adventures of an adolescent wizard of the same name. The fourth volume of the series, Harry Potter and the Goblet of Fire, was the fastest-selling book in history.
Since completing the series, Rowling has put her fortune toward philanthropic projects dealing with poverty, multiple sclerosis and other issues through her own Volant Charitable Trust.
“I’d give a lot to know how many teenagers (and preteens) texted this message in the days following the last book’s release: DON’T CALL ME TODAY I’M READING.” Stephen King
It’s the surprise call no one wants to get. Your wife has been killed in a random shooting as your young son looked helplessly on. Your suffering and loss quickly overwhelms you, and now, with a family to feed, you’re unable to gather the will to continue on and provide for your two boys. No one truly gets over the pain of losing a loved one… but they can learn to get through it – and even grow from it.
What is a Breakthrough?
A breakthrough is a moment in time when the impossible becomes possible. When something happens that shapes you, that moves you. Maybe you meet someone that inspires you. Maybe it’s a tool or a strategy that you learn. Maybe you finally get so fed up you won’t settle for the life that you have any more. It’s when something inside of you clicks and everything changes. You take massive action and you transform your life.