Archive for the ‘Levels’ Category

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Do you know where the wealth is?

Friday, March 25th, 2011

According to new research from Harvard Business School, most Americans have no idea how wealth is distributed in this country.

Here’s a handy chart from the study that pretty clearly illustrates how Americans think wealth is distributed, how they wish it was distributed, and how it’s actually distributed:

wealth-actual-and-perceived.gif
(click chart to download a pdf of the study)

Did you know that there was such a huge difference between the very top and the very bottom of the wealth scale?

  • - The top 1% (about 3 million people out of 300 million) holds 50% of the nation’s total wealth, and the top 20% owns 85%.
  • – The bottom 20% of Americans (about 62 million people) owns less than 5%.

There’s an interesting discussion on the New York Times about why this might be the case, why Americans underestimate income inequality, and whether we should even care.

Are you surprised? What would you have guessed?

Guess what? You’re probably committing tax fraud on a regular basis! Yes, you!

Wednesday, March 23rd, 2011


(photo credit: swanksalot)

Did you know that New York State requires residents to pay sales tax on items they order from Amazon.com?

Not at the time of purchase, because Amazon doesn’t calculate state taxes. But when you file your state tax return every year, you’re supposed to tell the state exactly how much unpaid sales tax you owe on everything you’ve purchased from out-of-state retailers (i.e., almost everything you buy online). And at the end of the year, you’re supposed to write a check for that amount.

Which, of course, nobody does. So states have been trying to pass laws requiring online retailers like Amazon, FatWallet, and Overstock to collect sales tax at the time of purchase.

Why all the sudden fuss? Well, most states are facing multi-billion-dollar budget deficits these days, and unpaid sales tax on online purchases could add up to more than $10 billion this year. Aside from selling the local park to a private company, taxes and traffic tickets are really the only ways a state can hope to raise the money it needs.

When you’re low on cash, don’t you suddenly start thinking about all the money that’s owed to you?

Click here to learn about hidden taxes, tax evasion in Switzerland, and tax breaks for do-gooders.

Why are gas prices so wildly different around the world?

Tuesday, March 22nd, 2011


(photo credit: Drew__)

If you’ve been in Europe recently, you’ve probably noticed all those extra digits in the price of “petrol.” In the U.S., we’re horrified at the idea of paying $4 a gallon for gas, but in Norway they’ve already blown past the equivalent of $9.

But… why? Is it harder to pump oil in to Norwegian gas stations? Is greater demand among the Norse driving prices up? Not even.

There are a few reasons, but according to Aaron Smith at CNN, it’s pretty much all about the government. Governments can either charge their citizens extra to buy gas (by taxing it) or the pay them to buy gas (by handing out subsidies, which lower the price per gallon).

Taxing gas is useful because the money pays for government programs. And handing out subsidies is useful if you want to keep your population happy. (You see this a lot in oil-producing nations like Saudi Arabia. It’s hard to be angry at the super-wealthy ruling elite when they’re basically paying for your gasoline.)

The moral of the story: Stuff is only worth what someone says it’s worth. $3 or $10, you still need it to make your Hummer go.

How much do you think you should pay to fill up your gas tank?

How the Stock Market Reacts to a Natural Disaster

Friday, March 18th, 2011


(photo credit: ehnmark)

After so much media coverage devoted to videos of water swallowing up cities, we were interested to see this Reuters article from Monday about the financial implications of Japan’s bad luck.

The stock market is operating under very rare conditions, and some of the news was really surprising. For example, this is the worst hit the market has taken in two years… but it’s the worst natural disaster the country has ever seen. Why didn’t the markets totally crash?

As a matter of fact, some stocks and sectors were actually doing very well on Monday. Here are some interesting facts from the report:

  • - The construction industry was booming, probably because demand for rebuilding will soon be enormous.
  • - Stock in the company that owns one of the nuclear power plants in danger of meltdown – Tokyo Electric Power – dropped 24% almost immediately.
  • - The technology sector, once one of Japan’s strongest, took a nosedive.
  • - Investors were selling off their long-term bonds* (20 years or more), which means that they’re not confident Japan will be able to repay their bond debts in the future.
  • - The earthquake happened on Friday. By Monday, the Bank of Japan was ready to announce that it would inject 15 trillion yen (about $187 billion) into the economy to support it during the crisis. (Kind of like the U.S. Treasury has been doing here to keep the economy afloat during the recession.)
  • - This vote of confidence inspired investors to purchase more short-term bonds (10 years or less).

This just goes to show you that changes in the stock market are all about what investors predict. These predictions can be rational or irrational, but the speculation never ends – no matter what happens.

* A bond is a kind of debt sold by governments and corporations to raise money. Basically, when you buy a bond, you’re buying the seller’s promise to pay you back (usually with a fixed interest rate) on a predetermined date.

Gen Y Gets a Job: Pretty Young Professional Talks with TILE

Wednesday, March 16th, 2011

What do you do when your fancy degree gets you a job answering the phone and filing papers for someone else?

Amanda Pouchot and Kathryn Minshew from prettyyoungprofessional.com have some helpful advice.

Smart Philanthropy in the Wake of a Disaster

Wednesday, March 16th, 2011


(photo credit: Kei!)

When something really bad happens in the world, we all feel hurt. And helping each other out is one of the best ways to alleviate that pain. But that common sense advice about not shopping when you’re hungry and not investing when you’re anxious also applies to giving.

Saundra Schimmelpfennig at the Chronicle of Philanthropy shared some advice on how to give smart in an urgent time of need. She encourages “disaster philanthropists” to think carefully before pledging their money to an emotionally compelling cause.

Here are some of her points that we think are especially important:

  • Make sure the organization you’re donating to actually has permission to operate in the affected area. (This is a no-brainer, but some governments refuse or limit access to foreign aid organizations.)
  • Consider giving to organizations that were operating successfully in-country before the disaster. They may have more resources and connections than many of the big-name international nonprofits.
  • Don’t be sucked in by projects that tug at your heartstrings. Sure, donating to an animal shelter seems like the natural thing to do after seeing this picture, but does directing your resources there really address the most critical needs on the ground?
  • Give aid organizations the freedom to choose what your donation pays for. They know better than you what the most important projects are.
  • Don’t forget about the disaster as soon as the news outlets do. Most of the expense and hard work happens after the initial emergency relief efforts end. Rebuilding houses, schools, communities, and lives can take years. Your donation will mean just as much in six months as it does today.

Ready to make an impact? Text a friend and ask them to donate with you. With two researchers on the job, you can probably find a perfect organization – and double your donation in the process!

Want to help? Stop talking and roll up your sleeves.

Tuesday, March 15th, 2011


Japan 2011 © JIJI PRESS

Even when disasters happen in far-away places, you can still help. Donating money is a great place to start, but don’t stop there. Hosting a fundraiser is as easy as inviting some friends over for lunch or making a page on crowdrise.org.

And Alanna Shaikh says that volunteering in your hometown is a lot more valuable than you might think:

“There is a lot of work at aid agency headquarters that can be done by committed volunteers, and that work often has a huge impact. Everything that a volunteer does pushes down overhead costs and frees up money for the organization to spend on international relief.

I was an Oxfam American volunteer back in the day, and I helped transcribe field interviews for qualitative surveys, edit and format documents, and prepare press releases. It was interesting work, and it was part of what led me to the work I do now. At International Medical Corps, our volunteers drafted situation reports, answered correspondence, and did literature reviews, among other things.”

Check out DoSomething.org, idealist.org, or the website of your favorite aid organization to get some ideas.

Want to help? Stop talking and roll up your sleeves.

Tuesday, March 15th, 2011


Japan 2011 © JIJI PRESS

Even when disasters happen in far-away places, you can still help. Donating money is a great place to start, but don’t stop there. Hosting a fundraiser is as easy as inviting some friends over for lunch or making a page on crowdrise.org.

And Alanna Shaikh says that volunteering in your hometown is a lot more valuable than you might think:

“There is a lot of work at aid agency headquarters that can be done by committed volunteers, and that work often has a huge impact. Everything that a volunteer does pushes down overhead costs and frees up money for the organization to spend on international relief.

I was an Oxfam American volunteer back in the day, and I helped transcribe field interviews for qualitative surveys, edit and format documents, and prepare press releases. It was interesting work, and it was part of what led me to the work I do now. At International Medical Corps, our volunteers drafted situation reports, answered correspondence, and did literature reviews, among other things.”

Check out DoSomething.org, idealist.org, or the website of your favorite aid organization to get some ideas.

Today at TILE: Japan

Monday, March 14th, 2011

Today at TILE we talked about the devastating earthquake and tsunami that hit Japan last Friday. Appropriately, everyone is focusing their attention on saving lives, containing nuclear radiation from damaged reactors, and doing everything they can to help. But after the initial rubble is cleared, what are the potential aftershocks to the Japanese economy? Will more than just buildings and towns need to be rebuilt? How can we help from so far away?

(more…)

Gen Y Gets a Job: Pretty Young Professional Talks with TILE

Monday, March 14th, 2011

What do you do when your fancy degree gets you a job answering the phone and filing papers for someone else?

Amanda Pouchot and Kathryn Minshew from prettyyoungprofessional.com have some helpful advice.

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