Is the American Dream Alive or Dead? It Depends on Where You Look PDF Summary

Is the American Dream Alive or Dead? It Depends on Where You Look PDFIn “Guns, Germs, and Steel,” Jared Diamond first championed the notion that geography has had a profound influence on the distribution of human wealth.

Now, in the appropriately titled report “Is the American Dream Alive or Dead,” the Economic Innovation Group demonstrates that the American reality of today can be described along the same lines.

Which is a scary notion.

But, unfortunately, is backed by data.

Who Should Read “Is the American Dream Alive or Dead? It Depends on Where You Look”? And Why?

Whether you believe in the American dream or not, this article is certainly a wakeup call – for the latter to see their fears validated by the available data, and for the former to realize that, even if still alive, it’s all but a nightmare for millions.

Economic Innovation GroupAbout the Economic Innovation Group

The Economic Innovation Group (EIG) is a bipartisan public policy organization founded half a decade ago with the mission “to advance solutions that empower entrepreneurs and investors to forge a more dynamic economy throughout America.”

To do that, EIG combines research and data-driven approaches to thoroughly examine some of the most pressing economic challenges facing the United States.

The organization considers itself “a leading voice in bringing geographic inequality into the national conversation.”

“Is the American Dream Alive or Dead? It Depends on Where You Look PDF Summary”

Ever since being both invented and overused ad nauseam by Horatio Alger Jr. in the second half of the 19th century, the nature and the reality of the American Dream have been explored by a host of great American writers in some of USA’s essential works of literature.

However, whether it’s F. Scott Fitzgerald’s “Great Gatsby” or Steinbeck’s “Of Mice and Men,” Arthur Miller’s “Death of a Salesman” or Hunter S. Thompson’s “Fear and Loathing in Las Vegas” – these books all seem to have in common a profound distrust in Alger’s vision, neatly summed up in George Carlin’s famous quip: “it’s called the American dream because you have to be asleep to believe it.”

Well, many still do, George: if you work hard enough – they think – you can reach the top of the ladder, no matter how many steps you need to climb on the way to there.

In EIG’s report “Is the American Dream Alive or Dead?”, we learn that things are not as pink.

On the contrary, in fact: the American Dream is unequivocally at risk, since “more than half of all U.S. counties [exert] a negative impact on children’s future earnings.”

You heard that right:

Basically half of America can only sleep through the American Dream!

Why?

Because they live in the wrong counties.

Really:

Place matters. While many like to think of the United States as a country where anyone willing to work hard can succeed, the reality for many is more complicated. The American Dream lies far out of reach for young people across much of the country not due to any individual shortcomings, but due to the unique mix of social, cultural, and economic forces at work in their communities—forces that condition and affect, if not always determine, lifetime outcomes.

Based on data coming from 2,869 US counties, EIG has discovered that “economic prosperity and economic mobility are positively and meaningfully correlated.”

Meaning: upward mobility is possible in prosperous counties, but unlikely in the poor ones which suffer from high rates of inequality as well!

The ratio is staggering:

Three out of five children under the age of 18 (so, 60% of underage Americans) live in counties where the American Dream is all but a nightmare.

If the American Dream is a “twofold promise of prosperity and mobility,” then “neither is in good health,” since both promises are alive and well in only 420 (i.e., one-seventh) of the examined counties. These are mostly located on the East Coast and the metropolitan areas on the West Coast, as well as the upper and the industrial Midwest and Texas.

The Southeast, on the other hand, and the remote desert Southwest (populated by Native Americans), abounds in counties in which the American Dream is merely a distant prospect.

Most of the counties have less than 100,000 people, “but altogether 14.5 million Americans live in these corners effectively vacated by the American Dream.”

In between these extremes, EIG analyzes two more groups of counties: such where mobility is possible, but the upward move doesn’t mean prosperity as well (the American dream is within reach) and such which are prosperous, but immobile (the American dream is fenced off).

The American Dream is fenced off in 28% of USA’s prosperous counties where 47.5 million Americans live in wild inequality.

On the other hand, the American dream is within reach against the odds for about 1.4 million Americans living in the few counties “that are still able to reconcile distress with mobility.”

The conclusion?

If the American Dream is to become more accessible, the country needs a more geographically inclusive pattern of growth, and it needs to tackle the determinants of mobility at their roots, neighborhood by neighborhood, at the same time.

Key Lessons from “Is the American Dream Alive or Dead? It Depends on Where You Look”

1.      The American Dream Is a Twofold Promise of Prosperity and Mobility
2.      The Four States of the American Dream
3.      The Stats Behind the American Dream

The American Dream Is a Twofold Promise of Prosperity and Mobility

By definition, the American Dream promises two things: that if you work hard, you’ll be able to move up the social ladder and become rich.

EIG’s report studies the data of almost 3,000 counties to see in which condition is the American Dream in relation to these two promises.

The Four States of the American Dream

After studying the data, EIG then categorizes each county in one of the four possible categories: prosperous and mobile counties (the American Dream is alive and well), prosperous and immobile (the American Dream is fenced off), distressed and mobile (the American Dream is within reach) and distressed and immobile (the American Dream is a distant prospect).

The Stats Behind the American Dream

Overall, over 60 percent of Americans under the age of 18 are growing up in counties which are geographically and environmentally incapable of fostering economic mobility.

The American dream is alive and well in 72% of USA’s prosperous countries examined by EIG (about 71 million people), mostly located in the Upper Midwest and Northern Plains.

The rest 28% (which encompass 47.5 million people) lack policies capable of translating prosperity into mobility and are, thus, fencing off the American Dream from many dreamers.

Against the odds, about 10% of America’s distressed counties (only 1.4 million people) still manage to foster upward mobility, rendering the American Dream within reach.

However, for the rest of the Americans living in USA’s poor counties (14.5 million), the American Dream is merely a distant prospect.

Like this summary? We’d like to invite you to download our free 12 min app, for more amazing summaries and audiobooks.

“Is the American Dream Alive or Dead? It Depends on Where You Look Quotes”

The American Dream can be summed up as a two-fold promise of prosperity and mobility. Neither is in good health. Click To Tweet

Overall, the majority (51 percent) of counties in the United States exert a negative impact on the economic mobility of low-income children. Click To Tweet

Fewer than 10 percent of the country’s distressed counties manage to provide disadvantaged children with a ladder to higher incomes in adulthood. Click To Tweet

Altogether 14.5 million Americans live in… corners effectively vacated by the American Dream. Click To Tweet

The American Dream does indeed exist; our task is to expand its reach. Click To Tweet

Our Critical Review

The concluding sentence of EIG’s report may be the most important you’ll read this year if you still believe in the American Dream or, at least, in some things such as compassion and humanity:

The American Dream does indeed exist; our task is to expand its reach.

We’ll just leave it at that.

www.pdf24.org    Take this summary with you and read anywhere! Download PDF:   

How Futures Trading Changed Bitcoin Prices PDF Summary

How Futures Trading Changed Bitcoin Prices PDFSome hail it as the future; others warn that it may be the newest economic bubble.

Either way, few people haven’t heard of bitcoin by now.

In this May 2008 FRBSF Economic Report, authors Galina Hale, Arvind Krishnamurthy, Marianna Kudlyak and Patrick Shultz take a careful look at “How Futures Trading Changed Bitcoin Prices.”

Who Should Read “How Futures Trading Changed Bitcoin Prices”? And Why?

“How Futures Trading Changed Bitcoin Prices” is not exactly an article for people who have been, are, or are planning to trade with bitcoins or bitcoin futures.

Simply put, there isn’t any investment advice here – especially not in relation to Bitcoin.

However, there is an interesting conclusion concerning the relation of price dynamics and futures trading in general.

Which should make this article interesting for any future investor or trader.

About Galina Hale, Arvind Krishnamurthy, Marianna Kudlyak and Patrick Shultz

Galina B. Hale Galina B. Hale is a research advisor in the Economic Research Department of the Federal Reserve Bank of San Francisco.

Arvind KrishnamurthyArvind Krishnamurthy is a Professor of Finance at the Stanford Graduate School of Business, with a Ph.D. in Financial Economics from MIT.

Marianna Kudlyak and Patrick Shultz are both research advisors in the Economic Research Department of the Federal Reserve Bank of San Francisco.  

“How Futures Trading Changed Bitcoin Prices PDF Summary”

Nobody knows who Satoshi Nakamoto is, or even if it is one person for that matter.

But many people know that, almost a decade ago, he/she/they developed the bitcoin and devised the first blockchain database.

The first decentralized digital currency, bitcoin was hailed by the leaders of the bitcoin movement as “inherently anti-establishment, anti-system, and anti-state,” not to mention “fundamentally humanitarian.”

Now, between January 2009 and February 22, 2017, bitcoin’s price never exceeded $1,150.

And, then it suddenly started skyrocketing, reaching $19,511 on December 17, 2017.

Coincidentally, the day bitcoin reached its peak was the very same day the Chicago Mercantile Exchange (CME) opened up a futures market for the cryptocurrency.

In barely a month, bitcoin’s price fell to half of its peak price and is currently at half of that, selling at about $6,000 per bitcoin.

So, you can’t blame the authors of “How Futures Trading Changed Bitcoin Prices” for seeing much more than just a coincidence between bitcoin’s fall and the opening of the futures market for bitcoins.

Even less so if you take into consideration that the same happened in the home financing market in the 2000s, when “financial innovations in securitization and groupings of bonds” attracted optimistic investors, before instruments were created which “allowed pessimistic investors to bet against the housing market.”

Similarly, the advent of blockchain introduced a new financial instrument, bitcoin, which optimistic investors bid up, until the launch of bitcoin futures allowed pessimists to enter the market, which contributed to the reversal of the bitcoin price dynamics.

Simply put, before December 17, 2017, there was no way for pessimists to bet on the decline in bitcoin prices.

The only ones who traded were optimists who, by buying bitcoins, were betting on the rise of bitcoin.

It’s always easier to bet on the rise because all you need to do is just buy a bitcoin.

However, once CME futures trading for bitcoin was launched, pessimists entered the equation.

Now, they could finally bet on the bitcoin prices going down, by short selling the digital currency.

The prophecy was, once again, self-fulfilling: as many people took short positions on the digital currency, its price started falling, and this triggered even more pessimism.

According to the authors, this pricing dynamic happens over and over again:

Once derivatives markets become sufficiently deep, short-selling pressure from pessimists leads to a sharp decline in value.

Now, the only question left is: do we know the real price of bitcoin?

Of course, this is not an easy question to answer.

However, in time, by analyzing some fundamentals such as mining costs, transactional demand, regulatory governance and the use and benefits of rival cryptocurrencies, investors will reach a clearer picture of bitcoin’s value.

By then – it’s all a speculation.

Key Lessons from “How Futures Trading Changed Bitcoin Prices”

1.      Bitcoin Was the First Decentralized Digital Currency
2.      Bitcoin’s Decline Coincided with the CME’s Opening of a Futures Market for the Cryptocurrency
3.      In the Future, Sell Before the Futures

Bitcoin Was the First Decentralized Digital Currency

Bitcoin is a cryptocurrency, i.e., a digital currency not backed by any asset of intrinsic value.

Launched in 2009, it was the first decentralized digital currency since its system was designed to work without administrators or a central bank.

Bitcoin’s Decline Coincided with the CME’s Opening of a Futures Market for the Cryptocurrency

Between 2009 and February 22, 2017, bitcoin’s price was relatively steady, never passing the $1,150 threshold.

However, during the next 11 months, it skyrocketed, and on December 17, 2017, one bitcoin was selling at a price of nearly $20,000.

That very same day, the Chicago Mercantile Exchange opened the futures market for bitcoin.

This provided pessimists with a mechanism to express their opinion about bitcoin by short selling. In merely a month, the price of bitcoin halved, and half a year after that, it revolves in the realm of $6,000 per bitcoin.

In the Future, Sell Before the Futures

“How Futures Trading Changed Bitcoin Prices” argues that Bitcoin’s price volatility is consistent with the rise and collapse of the home financing market of the 2000s, i.e., that, once again, the price dynamics was reversed once futures were launched.

If the logic of the authors is sound, be sure to sell before the futures start trading during the next investing craze.

Like this summary? We’d like to invite you to download our free 12 min app, for more amazing summaries and audiobooks.

“How Futures Trading Changed Bitcoin Prices Quotes”

The launch of bitcoin futures allowed pessimists to enter the market, which contributed to the reversal of the bitcoin price dynamics. Click To Tweet

The rapid run-up and subsequent fall in price after the introduction of futures does not appear to be a coincidence. Click To Tweet

As speculative dynamics disappear from the bitcoin market, the transactional benefits are likely to be the factor that will drive valuation. Click To Tweet

Optimists bid up the price before financial instruments are available to short the market. Click To Tweet

Once derivatives markets become sufficiently deep, short-selling pressure from pessimists leads to a sharp decline in value. Click To Tweet

Our Critical Review

“How Futures Trading Change Bitcoin” is a well-written, tightly-structured, thought-provoking analysis of a hotly debated topic. Highly recommended.

www.pdf24.org    Take this summary with you and read anywhere! Download PDF:   

Trade War Brewing? PDF Summary

Trade War Brewing? PDFWorld Trade in 2018

Evidently, the battlefield is now remodeled to serve the purposes of the New Era.

Two Major Superpowers are on the brink of full-scale Trade War that can shape the course of the economic future.

Let’s find out what makes this warfare so unique.

Who Should Read “Trade War Brewing?”? And Why?

Almost the entire planet has grown tired of endless conflicts and battles. As it turns out, the bloodshed is now converted into an intellectual war, which calls into question our integrity and principles.

In the “Trade War Brewing?“ Report you’ll be introduced to the eventual aftermath of this clash and more.

Dive right in!  

About The Economist Intelligence Unit

The Economist Intelligence Unit wants to be labeled as entirely independent research and analysis organization.

“Trade War Brewing? PDF Summary”

American Administration led by the 45th US President Donald J. Trump released a report on the reasons for increasing tariffs on steel and aluminum imports from Eastern and Central Asia.

For the apparent logic to safeguard America’s interest, the Chinese manufacturers and importers are pushed back by additional fees imposed on them.

Although no one believes that China would act indifferent to the provocations, people at least hope that this little issue will not grow into a full-scale Trade Conflict. American Trade Organization is deliberately testing the Chinese readiness to play alongside the restrictions.

Indeed, this is a double-edged sword because China in response can enforce trade restrictions on agricultural products. So, according to experts, this war for the moment is not anywhere near its end.

Due to the political and economic sake of the world, a full-scale trade war has to be prevented. Global supplies and needs being met rely on the cooperation of these two Giants on the World Arena.

Logically, increased barriers and tariffs on imports and exports could reduce the power of the wide-ranging supply chains.

So basically, both countries will suffer economically due to the higher fees. From what we see right now, the world trade growth ratio is at serious risk in terms of slowing down the global progress.

As a result, many Republicans in Congress may wind up in a middle of nowhere, by losing their seats. In other words, if the global community continues to behave immaturely, world trade will suffer in years to come.

The idea of integrating the supply chains may inflict an insignificant recession on the US Economy in 2020. Moreover, dragging down US-China relations is not something the World Trade Organization (WTO) strives for.

Such an unfortunate escalation may endanger their credibility. Losing its influence means having lesser authority in managing the global supply network.

China may file a complaint to its American counterparts about the steel and aluminum fees. As a matter of fact, Central and Eastern Asia depend on American metals.

Following a negotiation can eventually mean that one of the parties may receive the go-ahead from the WTO. Favoring one or the other country may leave the other one exposed to external influences.

An American Victory could spark a whole different behavior in protecting the country’s supplies and asserting dominance. In case of Chinese Victory, WTO could encourage the Americans to stick to the tariffs and cast doubt upon global agreements.

Each decision will inflame instability in the global arena, and further destabilize the fragility of world-trade liberalization.

Japan is growing increasingly closer with its European allies and is inclined to nurture the Trans-Pacific Partnership. On the other end, US isolation may represent a turning point in the worldwide dominance as far as trade is concerned.

Like this summary? We’d Like to invite you to download our free 12 min app, for more amazing summaries and audiobooks.

“Trade War Brewing? Quotes”

After setting the global trade agenda for the past 70 years, the current position of the Trump administration has left the US isolated. Click To Tweet With the US turning away from multilateral trade liberalization… China now has the opportunity to help to set the rules of engagement. Click To Tweet

Our Critical Review

In all honesty, we don’t believe that we possess the means and expertise to gauge such an in-depth overview of the situation.

One thing is for certain; neither country wants to be on the receiving end of sanctions and outcomes which depict a fruitless economy.  

www.pdf24.org    Take this summary with you and read anywhere! Download PDF: