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In Canada the top .01% of income earners have an average income of $6 million, and collectively earn 1.5% of our total income. Sounds like a lot until you look at the US, where the top .01% earn an average of $24 million each – which adds up to a 4.5% share of the total.
(from Canadian Business, Dec 9, 2013, Editor’s Letter by Duncan Hood)
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
Hong Kong – Megacities
A peninsula bounded by more than 200 islands – only a handful of them inhabited, Hong Kong is the most densely populated urban region on the planet. In the recent past it has been rocked by economic and financial upheaval. Yet it has come through with some of the most high-tech, counterfeit-proof currency in the world, as well as some of the most complex bank building structures. Hong Kong has more billionaires per capita than anyplace on earth. This episode shows how such a small city accomplished such immense technological feats. The journey begins inside the printing facilities of Hong Kong Printing Limited and follows the currency to the Big 3 banks in Hong Kong, before it is then circulated through the economy.
Robert T. Kiyosaki – The Business of the 21st Century
Investor, Entrepreneur, Financial Education Advocate, and Best-Selling Author of “The Business of the 21st Century – Network Marketing”
For the past ten years I have devoted my life to finding the most effective and practical ways to help people transform their lives in the 21st century by learning how to build genuine wealth,through Network Marketing / MLM
Through our Rich Dad books, my partners and I have written about many different types and forms of enterprise and investment. But during these years of intensive research, I have come across one business model in particular that I believe holds the greatest promise for the largest number of people to get control of their financial lives, their futures, and their destinies.
If you’re worried about losing your job through down-sizing or just want to take charge of your future by taking control of your income source, you need The Business of the 21st Century!
That’s why, for the past several years, I has been a staunch supporter of Network Marketing / MLM / Multi-Level Marketing. Like many people, I was skeptical about the industry at first … until I personally learned first-hand what network marketing is all about — IT’S ABOUT HELPING PEOPLE — NORMAL PEOPLE, getting from the POOR side of the quadrant into the RICH quadrants.
Like billionaires, DONALD TRUMP and WARRAN BUFFET, ROBERT sold on NETWORK MARKETING. He will share my insights with you on why he believes it is the business of the 21st century — and why now is the perfect time for YOU to take advantage of the opportunities it offers!
ROBERT T. KIYOSAKI is going to show you why you need to build your own business, and exactly what kind of business. But this isn’t just about changing the type of business you’re working with; it’s also about changing you. We will show you how to find what YOU need to grow the perfect business for you, but for your business to grow, you will have to grow as well…
Welcome to the Business of the 21st Century — ROBERT T. KIYOSAKI.
What I Learned While Making a Movie About Happiness: Roko Belic
The more you own, the more you know you don’t own – Aristotle Onassis