Posts filed under “Wages & Income”
You all the know urban legend of the conversation between F. Scott Fitzgerald and Ernest Hemingway.
Fitzgerald: “Let me tell you about the very rich. They are different from you and me.”
Hemingway: “Yes, they have more money.”
It never happened, but it points to an interesting question: Why are we in America so fascinated with other people’s wealth?
We talk about it, make movies about it, track it incessantly. We have the Bloomberg Billionaire Index and the Forbes 400. We track the heirs to the Wal-Mart fortune, and took note when the Koch Brothers wealth surpassed $100 billion.
There seems to be an unhealthy obsession with other people’s money in America. I plead guilty to contributing to this. Whether it is about hedge fund managers or the wealthiest New Yorkers, I have posted chart after chart on the subject. My focus is usually — but not always — an explanatory warning on the dangers of excessive fees for investors. That was the underlying focus of my presentation, Romancing Alpha, Forsaking Beta.
However, the most viral thing I have ever posted at Bloomberg View was a chart highlighting the difference between the Rich and the 0.01%.
It looks as if you can buy happiness, after all. At least, in limited amounts, and up to a point. That seems to be the conclusion based on a recent survey by the Pew Research Center, part of the Pew Charitable Trust. Pew notes that Israel, the U.S., Germany and the U.K. have the happiest…Read More
Economic Commentary Income Inequality and Income-Class Consumption Patterns LaVaughn M. Henry Federal Reserve Bank of Cleveland, 10.06.2014 As income inequality has increased in the United States, researchers have rightfully asked whether it has also led to inequality in relative consumption. This is an important question because consumption is clearly a better measure of an…Read More
Source: MoJo Last time we looked at this subject, we noted that There’s Rich, Then There’s the 0.01%. Since then, the disparity between rich and poor, as well as the rich and the really rich have widened further. As the chart above shows, the gap between the bottom 90% (in pink) and the…Read More
For a long time, the fund managers at Yale’s endowment were the industry’s gold standard. Inevitably, as in so many things Ivy, this was noticed by rival Harvard. The so-called Yale Model, developed by David Swensen and his colleague Dean Takahashi, was rich with alternative investments, private equity, commodities and real estate and other items…Read More