Global economy

Insurance Market Activity Promote Economic Growth TAGS: | | | | |

insurance

Insurance market activity, both as a provider of risk transfer and indemnification, may put up to economic growth by allowing different types of risks to be controlled more efficiently and by mobilizing domestic savings. During the past decade, there has been faster outgrowth in insurance market activity, particularly in emerging markets given the process of liberalization and financial integration, which increases questions about its influence on economic growth. The author tests whether there is a causal relationship between insurance market activity (life and non-life insurance) and economic growth. Using the generalized method of moments for dynamic models of panel info for 56 countries and for the 1976-2004 period, he finds robust evidence of a causal relationship between insurance market activity and economic growth. Both non-life and life insurance have a positive and substantial causal effect on economic growth. The results were driven in the case of life insurance by high-income countries. On the other hand, both developing countries and high-income drive the results in the case of non-life insurance.

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Free Trade Area of the Americas TAGS: | | |

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“Never in America has there been a matter requiring more good judgment or more vigilance, or demanding a clearer and more thorough examination.” So said Jose Marti, Cuba’s independence hero of the first effort by the United States to unite the two halves of the Americas in 1889. By the early 2000s, the region’s governments were still stumbling on toward that goal, but hardly in step.

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Culture is central conservative truth

The central conservative truth is that is culture, not politics, that determines the success of a society. The central liberal truth is that politics can change a culture and save it from itself.

Daniel Patrick Moynihan

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Nonmarket parasites on a market world TAGS: | | | | |

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“Robost growth has also produced a number of anomalies. Within an increasingly globalized and disciplined world, certain countries – those endowed with natural resources, especially petroleum and natural gas – are getting free rides.

They are surfing the wave of global growth, getting rich without having to play by most of the rules that govern the global economy. This phenomenon is the strange but inevitable outgrowth of the success of everyone else. These countries are the nonmarket parasites on a market world.”

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Inequality of Wealth in America TAGS: | | | |

us inequality

Video showing through the awesome graphic truth about the distribution of wealth in the United States.

According to Wikipedia, in 2007, the top 10% wealthiest possessed 80% of all financial assets. In 2007 the richest 1% of the American population owned 34.6% of the country’s total wealth, and the next 19% owned 50.5%. Thus, the top 20% of Americans owned 85% of the country’s wealth and the bottom 80% of the population owned 15%. In 2011, financial inequality was greater than inequality in total wealth, with the top 1% of the population owning 42.7%, the next 19% of Americans owning 50.3%, and the bottom 80% owning 7%. However, after the Great Recession which started in 2007, the share of total wealth owned by the top 1% of the population grew from 34.6% to 37.1%, and that owned by the top 20% of Americans grew from 85% to 87.7%. The Great Recession also caused a drop of 36.1% in median household wealth but a drop of only 11.1% for the top 1%, further widening the gap between the top 1% and the bottom 99%.

According to PolitiFact and others, in 2011 the top 400 Americans “have more wealth than half of all Americans combined.”
In 2013 wealth inequality in the U.S. was worse than in most developed countries other than Switzerland and Denmark. In the United States, the use of offshore holdings is exceptionally small compared to Europe, where much of the wealth of the top percentiles is kept in offshore holdings. While the statistical problem is European wide, in Southern Europe statistics become even more unreliable. Less than a thousand people in Italy have declared incomes of more than 1 million euros. Former Prime Minister of Italy described tax evasion as a “national pastime”.

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