What are some continuing uncertainties for the us economy?

1. What are some continuing uncertainties for the us economy?

2. Content • Immigration problems • Stock market bubble • Obama Care • Income and wealth distribution

3. Immigration problems • The U.S. Department of Homeland Security (DHS) estimates that there were 11.5 million undocumented, or unlawful, foreign-born persons in the U.S. in January 2011. • These estimates are based on the fact that the number of foreign-born persons appearing in U.S. Census surveys is considerably greater than the actual number of foreign-born persons who are permitted to reside lawfully in the U.S. according to immigration records • Lostjobs, depreciated wages, stolen taxpayer resources, and increased numbers of crimes and domestic terrorism. • Illegalimmigrants are stealing over 125 Billion dollars worth of American taxpayer resources each year. • They are breaking our laws and yet as taxpayers we are forced to pay for their education, their healthcare needs, increased infrastructure to handle their presence in our land, and increased costs in our courts and prisons

4. Immigration problems

5. Immigration problems

7. Illegal immigration costs U.S. taxpayers about $113 billion a year at the federal, state and local level. The bulk of the costs — some $84 billion — are absorbed by state and local governments.

8. Stock markets bubble • Stocks are getting to their maximum record (JP Morgan, Citi group, etc) • economy has beengrowingfrustratinglyslowlyforalmostfiveyears, stocks havebeenrising • e.g.: nvestment in theStandard & Poor 500-stock indexwouldhavedoubledfromearly 2009 throughearly 2013 and thengainedanadditional 18 percentoverthelastyear. • stocks havebeen more expensiveonlythree times overthepastcenturythanthey are today (1920, 1990 and 2007) • Stocksseem more appealingthansafe, low-returninvestments.  • “Thereis no waytopredictthefuture”, but the fact is stock prices are historically high • Advise: be conservative investi in adiversifiedindexfunds.

9. Income inequality and wealth distribution • Income inequality in OECD countries is at its highest level for the past half century. The average income of the richest 10% of the population is about nine times that of the poorest 10% across the OECD, up from seven times 25 years ago. Only in Turkey, Chile, and Mexico has inequality fallen, but in the latter two countries the incomes of the richest are still more than 25 times those of the poorest. • The economic crisis has added urgency to the need to address inequality. Uncertainty and fears of social decline and exclusion have reached the middle classes in many societies. Arresting the trend of rising inequality has become a priority for policy makers in many countries.

10. Income and Wealth Distributions • The U.S. poverty rate in 2011 was higher compared to all other OECD countries other than Israel, Mexico and Turkey. Gini coefficient: measures income inequality, 1 means 1 person possess al income and 0 that income is equally distributed among all individuals

11. Obamacare Backgroundinformation • Prior tothepassage of Obamacare, manypeoplefeltthatthe US healthcaresystemwastooexpensivegiventheslightlyhigherquality of careprovidedinthe US comparedwithothercountries. Theyassertedthatsomethinglike 40 millionpeople in the US didnothavehealthinsurance What? • Newhealthcarereformlaw in America • Goals of obamacare: Goals:(1) to extend insurance to a much larger group of peoplethan what existed before, (2) to make insurance more affordable and bend the cost curve, (3) to improve the qualityof health care in the US and make it more readily accessible. • E.g. of measures: expandcoverage (ends Pre-ExistingConditionExclusionsforChildren, endsArbitraryWithdrawals of InsuranceCoverage, GuaranteesRighttoAppea, CoversPreventiveCare, increasechoice of doctor)

12. Obamacare • Cons of Obama care: • Threatenedtheflexibility and freedom of choiceformillions of healthcareconsumers and providersbyinterposingthe federal governmentbetweenmanypeople in theprivatehealthcaremarket. • PlacedsevereburdenonolderAmericanstofund extended benefitstoyoungerlowincomeAmericans. • ForcedhealthyAmericanstosubsidizethecosts of takingcare of stillotherpeoplewhohave pre-existing medical conditions.

13. Obamacare • Approval rate:

14. Obama care Economic problems • Businesswhichemploys 50 or more full time workerswill be requiredtobuyfederallyqualifiedhealthinsuranceplansforthemorsuffer a penalty • Therewill be greatertaxes: 20 new orhighertaxe, e.g. taxespaidonhighlevelexpensivehealthinsurancepremiumspaidbytherich, new wealthgainstax, payrolltaxfor Medicare to rise,taxeson medical devices and expensivepharmaceuticals.

15. Conclusion • Immigration, income and wealth distribution, health care and stock markets are long term structural problems for USA economy • Problems cannot be solved in short term but need be addressed with a holistic view where all socio-economic actors are involved