A Quote by Carrie Lam
While easy to understand, the income-based poverty line has limitations. Specifically, the median monthly household income measures only income without considering assets.
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My rich dad taught me to focus on passive income and spend my time acquiring the assets that provide passive or long term residual income...passive income from capital gains, dividends, residual income from business, rental income from real estate, and royalties.
Given the relativity concept, poverty cannot be eliminated. Indeed, an economic upturn with a broad improvement in household income does not guarantee a decrease in the size of the poor population, especially when the income growth of households below the poverty line is less promising than the overall.
As income from work has become more concentrated in America, the super rich have invested in businesses, real estate, art, and other assets. The income from these assets is now concentrating even faster than income from work.
The collective income of all these people - the bottom half - is less than three percent of global household income, and so there is a grotesque maldistribution of income and wealth.
The poverty line in the U.S., for example, has nothing to do with the poverty line in India. It is a relative poverty line. It is reset from time to time but it is related to U.S. median income, so if I set that to be the absolute poverty line everyone in India would essentially be poor.
If you are born into a family below the national median income, we provide you with an additional $500, and for every contribution made to a child's account below the national median income, we match it dollar for dollar - the federal government will.
The bottom quarter of the human population has only three-quarters of one percent of global household income, about one thirty-second of the average income in the world, whereas the people in the top five percent have nine times the average income. So the ratio between the averages in the top five percent and the bottom quarter is somewhere around 300 to one - a huge inequality that also gives you a sense of how easily poverty could be avoided.
If I collected all the diamonds in the world, I'd have no 'income' but I'd have a lot of 'assets'. Would my company be worth nothing because I have no income? A lot of Net companies are collecting assets. They have to be measured with a new set of metrics.
Over the period from 1988 to 2005, the income share of the top five percent has grown by about 3.5 percent of global household income, and the shares of all the other groups have diminished. The greatest relative reduction was in the bottom quarter, which lost about one third of its share of global household income, declining from 1.155 to 0.775 percent, and now is even more marginalized.
A lot of our sources for income-inequality measures come from household surveys in which people report how much they earned in the last year, how much income they have, and so on. Those are not as well funded as they should be. We need to have those numbers.
China's continued growth and rising household income are creating opportunities for lower-income economies in low-cost manufacturing.
The key to financial freedom and great wealth is a person's ability or skill to convert earned income into passive income and/or portfolio income.
The income tax is a twentieth-century socialist experiment that has failed. Before the income tax was imposed on us just 80 years ago, government had no claim to our income. Only sales, excise, and tariff taxes were allowed.
For every challenge we face - unemployment, poverty, crime, income growth, income inequality, productivity, competitiveness - a great education is a major component of the solution.
First, in order to build a business, you have to be able to sell because Sales = Income. When income is lacking, it's usually because the owner doesn't like to, doesn't know how to, or is simply reluctant to sell. Without sales, however, you have no income.
Only now are increasing numbers of political and social scientists beginning to realize that Kelso's theories provide a private-property-based alternative to the imminent passage of a government-distributed "guaranteed income" or "negative income tax."
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