Random Thoughts

The rich get richer and the poor get poorer. I heard this statement quite a bit lately particularly in light of the sub-prime mortgage and general housing crisis in the US. The country has enjoyed significant economic prosperity and both Clinton and Bush boasted economic growth under their reign. Unfortunately, the beneficiaries of the economic boom are not people from all economic backgrounds, but rather the top 10%. To make things worse, Bush gave tax cuts mainly targeting the top 10%. Being more of a numbers guy, I always wanted showing the validity of the-rich-get-richer-n-the-poor-get-poorer statement. Thanks to Wikipedia , I have finally found it!! Both the mean and median net worth of families for the bottom 50% of the population has remained absolutely flat while the 75th-90th percentile see a decent growth and the top 10% enjoy the most appreciation on their net worth. So, if you factor in inflation, the-rich-get-richer-n-the-poor-get-poorer probably holds true. The g

World economics has been an interest of mine for a long time and I will start blogging about it here. Questions like how and if the US can continue its dominance and prosperity, what role China and India will play in the world and what the future holds for the likes of Ethiopia and Eritrea fascinate and worry me quite a bit. To the best of my non-economist abilities, I will address these questions in the future. My first entry derives some general conclusions from statistics on economic aid from developed countries to developing and third-world countries that I found on BBC . It is no surprise the US leads in this category and a better measure of generosity would be one where the amount of aid is given as a percentage of the country's GDP or revenues. Considering this aid is coming from governments as opposed to NGO's, it would be more informative to calculate this aid as a percentage of a government's revenue. Unfortunately, what BBC reports is the amount of aid as a