The World's Best Book Summaries
Are poor people lazy? What did the Covid-19 experience teach us about poverty and work ethic? When politicians try to figure out why people become poor and stay poor, they often point to a lack of work ethic. Social scientist Matthew Desmond pushes back on this idea, pointing to data gathered during and after the Covid-19 pandemic. Continue reading to learn what Desmond discovered.
How would a global minimum tax on billionaires’ wealth work? What are the main arguments for and against the tax? Does the proposal have a shot at becoming a reality? A proposal for a 2% minimum tax on billionaires’ wealth aims to raise revenue and address inequality, but faces skepticism. Proponents say the billionaire tax could generate $250 billion annually while critics argue that implementing the tax will require global coordination that will be tough to achieve quickly. Continue reading to learn about the different opinions regarding a billionaire tax.
How was the hedge fund LTCM formed? Why was the hedge fund created in the first place? Shortly after John Meriwether left Salomon Brothers, he sought to create a new fund. In When Genius Failed, Roger Lowenstein delves into the emergence of LTCM, its unique convergence strategy, and the high-risk, high-reward nature of its approach. Continue reading to learn about the early years of LTCM.
Why is there poverty in the US? Do immigrants have less social mobility? Is family structure a factor? The US is a prosperous nation. But, poverty has a hold on a significant portion of the population. The stubborn persistence of poverty has given rise to several false explanations for its staying power, including immigration, non-traditional family structures, and a bad work ethic among the poor. Read more to see how social scientist Matthew Desmond tackles these three myths about poverty in the US.
What was the 1997 Asian economic crisis? How did the crisis affect LTCM? Several Asian countries experienced a currency collapse in 1997. The crisis eventually found its way to the US, affecting several hedge funds, including LTCM. Here’s how the 1997 Asian economic crisis led to the collapse of LTCM.
What is YIMBY? What’s the frustration behind it, and what’s its goal? YIMBY (“Yes in My Back Yard”) is a social and political movement focused on affordable housing. A response to NIMBY (“Not in My Back Yard”), they demand reforms in policies and regulations that govern housing in large cities. Keep reading to learn about the YIMBY movement and its demands.
What was the 1998 Russian financial crisis? How was LTCM affected by the crisis? The collapse of the Russian ruble in August and September 1998 exacerbated the impending liquidity crisis in global financial markets, intensifying the fund’s difficulties. Russia defaulted on its financial obligations, sending shockwaves throughout global financial markets. Find out how the 1998 Russian financial crisis contributed to LTCM’s downfall.
Do you want to keep the poor out of your neighborhood? Are you struggling to become a homeowner? In Poverty, by America, social scientist Matthew Desmond addresses the link between housing and poverty. He argues that some public policies and personal choices exploit the poor. But, he says that we can turn things around and offer empowerment instead of exploitation. Keep reading to understand Desmond’s argument.
Why did the hedge fund LTCM collapse? What economic crises contributed to the downturn? The year 1997 was the beginning of the end for LTCM, as it succumbed to the enormous risks it had taken on, along with the combined pressures of the 1997 Asian financial crisis and the 1998 Russian financial crisis. We’ll explore how unexpected volatility began to sink the fund. Check out the events that led to this hedge fund collapse.
Does the tax code favor the rich? Is a progressive tax system the most fair? Matthew Desmond asserts that poverty in America persists because it benefits many people to keep some others in a state of want. He offers a multifaceted approach to eradicating poverty. One part of this is to crack down on welfare for the rich and use the money to empower the poor instead. Continue reading to get the details of Desmond’s proposal as well as a counterargument to it.