Content tagged with "economics"
The article discusses the concept of litigation financing, where investors fund legal fees for plaintiffs they believe will win, and then take a cut of the proceeds. This was exemplified in a case involving an ex-executive from AIG who is suing the government over the AIG bailout, with investors contributing about 15% of the legal costs. The article also mentions that hedge funds also invest in lawsuits, with one firm raising $260 million for a fund that only invests in litigation between institutions.
The document discusses the concept of “externalities” in politics and economics, which are side effects of actions that affect a party who did not choose to be affected. It explains that evaluating an externality involves two main aspects: assessing the degree of the externality and comparing it to the benefit provided by the action causing the externality. The document uses the example of an environmental issue like toxic fumes from a factory and an abortion, highlighting the difficulty in agreeing on the degree of damage caused and the benefits provided by these externalities.
The student loan bubble in the USA is predicted to burst, with total student loan debt surpassing credit card debt in the country at $850 billion. The student loan market is lucrative due to the government’s guarantee of the loans, which offers no risk to the lending institution and increases the pool of potential students for colleges. However, any tightening of the student loan market would be disastrous for colleges, causing tuition rates to fall.
The article discusses the impact of the wealthy on the cost of living, arguing that their demand for urban living is leading to increased rents and pushing the lower class out of downtown areas. The author suggests that the wealth of the wealthy indirectly drains the finances of the lower-class, as their ability to afford high rents means a market for more expensive housing, leading to an increase in average rents. The author concludes that the problem arises when the rich get richer and the poor get poorer, and the cost of living increases with them.
Improving the plight of the working poor can be a trickier problem than you think.
The video, shown at a Rotary lunch by the president of a local technical school, emphasizes that college isn’t for everyone and that success should be based on a love for the work and a good income potential. It also highlights the fact that increasing the number of college graduates does not automatically create jobs, and introduces the term “gray collar jobs” to describe jobs that require a certificate or associate’s degree but not a bachelor’s degree. The video also raises concerns about the lack of breadth in technical education.
The author suggests that the U.S. economy requires a significant number of Americans to be irresponsible with their money, as their irresponsible spending helps keep the economy functioning. They argue that if these Americans were to become more responsible with their money, the economy would collapse. The author suggests that if the wealthy were to pay more in taxes, it might be better for them to do so, as it would allow the middle and lower class to continue their irresponsible behavior.