http://www.ambitgambit.com/2009/05/27/china-and-the-us-conjoined-at-the-hippocket/ Ambit Gambit Sat, 11 Feb 2012 19:31:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.ambitgambit.com/2009/05/27/china-and-the-us-conjoined-at-the-hippocket/comment-page-1/#comment-3112 MB Thu, 28 May 2009 13:33:54 +0000 http://localhost/ambit/?p=3536#comment-3112 Ronda is right. The Inequality Trust has evidence that 'on each of eleven different health and social problems: physical health, mental health, drug abuse, education, imprisonment, obesity, social mobility, trust and community life, violence, teenage births, and child well-being... outcomes are very substantially worse in more unequal societies.' (http://www.equalitytrust.org.uk) Also, as Arjay implies, the USA's supposed ‘total net worth’ of $329 trillion is way over the top. For someone who lives there and 'loves the culture there,' George Friedman is clearly going to be biased. If Friedman’s ‘total net worth’ is referring to total household net worth, then about 85% of this total is usually made up of estimated property values. Property values have long been a bubble, even before recent times. They are artificially inflated by social customs, hierarchy and politics. The inflated values are sustained for political reasons, otherwise social and household financial arrangements would become too chaotic. So the vast bulk of this ‘total net worth’ isn’t real – it’s a huge overestimate. As has been said before, people in countries such as the USA have been making most of their money by selling property to each other and borrowing money from overseas to pay for it. Hardly a convincing way to create wealth. If Friedman is including the wealth of such types as Gates and Buffett in his figure, then if they were to move overseas, the whole thing would be shot. So to claim that the USA has a ‘total net worth’ of $329 trillion is ludicrous. Ronda is right. The Inequality Trust has evidence that ‘on each of eleven different health and social problems: physical health, mental health, drug abuse, education, imprisonment, obesity, social mobility, trust and community life, violence, teenage births, and child well-being… outcomes are very substantially worse in more unequal societies.’ (http://www.equalitytrust.org.uk)
Also, as Arjay implies, the USA’s supposed ‘total net worth’ of $329 trillion is way over the top. For someone who lives there and ‘loves the culture there,’ George Friedman is clearly going to be biased.
If Friedman’s ‘total net worth’ is referring to total household net worth, then about 85% of this total is usually made up of estimated property values.
Property values have long been a bubble, even before recent times. They are artificially inflated by social customs, hierarchy and politics. The inflated values are sustained for political reasons, otherwise social and household financial arrangements would become too chaotic. So the vast bulk of this ‘total net worth’ isn’t real – it’s a huge overestimate.
As has been said before, people in countries such as the USA have been making most of their money by selling property to each other and borrowing money from overseas to pay for it. Hardly a convincing way to create wealth.
If Friedman is including the wealth of such types as Gates and Buffett in his figure, then if they were to move overseas, the whole thing would be shot. So to claim that the USA has a ‘total net worth’ of $329 trillion is ludicrous.

]]> http://www.ambitgambit.com/2009/05/27/china-and-the-us-conjoined-at-the-hippocket/comment-page-1/#comment-3113 Ronda Jambe Thu, 28 May 2009 06:55:59 +0000 http://localhost/ambit/?p=3536#comment-3113 The net worth of the US is hardly distributed evenly, but debt will fall on all shoulders. The graph of the changing distribution of wealth in the US (and to a lesser extent, Australia) is close to an exponential curve. This is one of my hobbyhorses: when curves go vertical, something breaks. Watch that space. The net worth of the US is hardly distributed evenly, but debt will fall on all shoulders.
The graph of the changing distribution of wealth in the US (and to a lesser extent, Australia) is close to an exponential curve. This is one of my hobbyhorses: when curves go vertical, something breaks. Watch that space.

]]> http://www.ambitgambit.com/2009/05/27/china-and-the-us-conjoined-at-the-hippocket/comment-page-1/#comment-3114 Arjay Wed, 27 May 2009 20:35:00 +0000 http://localhost/ambit/?p=3536#comment-3114 I'm quite impressed Rhonda.This is not your usual eco friendly article.Glad to see you are ambidextrous and can understand economic issues. I have but one issue with George Friedman about the US having a net worth of $329 trillion.[ie.$329,000,000,000,000.00]With a pop of 308 million this means that the net worth of every person is over $1 million.Why are the US people on average then so poor? Who owns all the wealth? Presently the US Govt debt is $11 trillion.This a debt is $35,000.00 for every person. I’m quite impressed Rhonda.This is not your usual eco friendly article.Glad to see you are ambidextrous and can understand economic issues.
I have but one issue with George Friedman about the US having a net worth of $329 trillion.[ie.$329,000,000,000,000.00]With a pop of 308 million this means that the net worth of every person is over $1 million.Why are the US people on average then so poor? Who owns all the wealth?
Presently the US Govt debt is $11 trillion.This a debt is $35,000.00 for every person.

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