Many Americans tend to assume we’re the greatest nation. After all, people from other countries are frequently trying to move here. For the most part, we have a strong economy, we’re well educated, we make decent money, and we have the NFL, NBA, and MLB for gosh sakes. The U.S. rules.
Except when it doesn’t. The state of our economy is greatly influenced by what goes on in other countries. For example, as the Ukraine-Russia conflict increases the risk profile in Europe, the United States could benefit from greater global capital inflow. On the other hand, should Russian aggression become more pronounced, our government officials may soften the pressure they have placed on regulators to decrease the U.S. defense budget – requiring politicians to look elsewhere for a solution to the country’s deficit woes.
[CLICK HERE to read the article, “Old Embers Never Die,” at Guggenheim, May 8, 2014.]
[CLICK HERE to read the article, “May market update: Positive signs,” at Fidelity, May 8, 2014.]
It’s important – yet often difficult – for Americans to recognize that as powerful as our nation is, we’re not the only players out there. The new millennium firmly entrenched a global economy in which events that happen in far flung countries can impact us, and vice versa. Therefore, it pays to pay attention.
[CLICK HERE to read the article, “Uneven global economy a test for central banks,” at CNBC.com, May 15, 2014.]
[CLICK HERE to read the article, “Global Economy Watch: May 2014,” at Price Waterhouse Coopers, May 2014.]
[CLICK HERE to read the article, “Global economy strengthening but significant risks remain, says OECD in latest Economic Outlook,” at The Organisation for Economic Co-operation and Development, May 6, 2014.]
Some are predicting this could be the era of Chinese consumerism, creating a foundation for China to become the world’s largest economy. In addition, there are increasing signs that India would not be far behind to outpace China’s success.
[CLICK HERE to read the article, “Why global recovery could depend on China’s taste for luxury,” at The Guardian, May 10, 2014.]
[CLICK HERE to read the article, “China is an economic powerhouse, but size isn’t everything,” at The Guardian, May 8, 2014.]
[CLICK HERE to read the article, “Why India Will Soon Outpace China,” at Forbes, May 4, 2014.]
The U.S. is hardly the only country struggling with government expenditures, high unemployment, and slow economic growth. As we currently grapple with the question of whether to increase the hourly minimum wage to $10.25, Switzerland recently voted on a referendum to raise the national wage to the equivalent of $25 an hour. While the Swiss as a whole enjoy low unemployment and fewer work hours, the average household boasts about $30,000 in net discretionary income. Sound rich? Only for a minority of the population given the great income discrepancy — those in the top 20 percent earn nearly five times what those in the bottom 20 percent earn.
[CLICK HERE to read the article, “Where could you get $25 minimum wage?” at CNNMoney.com, May 16, 2014.]
It appears that from many different perspectives, the grass may seem greener somewhere else. If we can help you develop a clearly defined picture of your own financial strategy within your household, please give us a call.
Our firm assists retirees and pre-retirees in the creation of retirement strategies that include the use of insurance products.
These articles are being provided for informational purposes only and should not be used as the basis for any financial decisions. While we believe this information to be correct, we do not guarantee the accuracy or completeness of the information included. All clients are encouraged to consult qualified tax and legal professionals before making any decisions about your personal situation.
If you are unable to access any of the news articles and sources through the links provided in this text please contact us to request a copy of the desired reference.
Source: Woods Blog Old