Greenberg Center for Geoeconomic Studies

Geo-Graphics

A graphical take on geoeconomic issues, with links to the news and expert commentary.

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Buffett Wants to Pay Higher Taxes—on Less Than 1% of His Income

by the Center for Geoeconomic Studies
The U.S. Tax Code: Poorly Designed, but Progressive

In a now-famous August 14, 2011 New York Times op-ed, billionaire Warren Buffett called for tax rates to be raised “immediately on taxable incomes in excess of $1 million, including, of course, dividends and capital gains.” The key word here is “taxable.” In Buffett’s case, his taxable income is a mere 0.9% of his income held within Berkshire Hathaway, of which he owns 22%. His share of its 2010 pre-tax income was $4.2 billion dollars, taxes on Read more »

Even Slowing China Is Fueling Global Growth

by the Center for Geoeconomic Studies
2012.1.30.ChinaGrowthPerPt

China’s economy slowed from a growth rate of 10.3% in 2010 to 9.5% in 2011 (and a 2000s peak of 14.2% in 2007), prompting fears that China could trigger a global slowdown.  Yet at 10% of world output, 2.5 times what it was in 2001, the Chinese economy is now so large that it will continue to make a significantly rising contribution to global growth even if its own growth rate continues to fall off moderately.

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Housing Defriends the Facebook Generation

by the Center for Geoeconomic Studies
Change in U.S. Homeownership Rates

Many U.S. policymakers, not least at the Federal Reserve and the Treasury, continue to pin hopes for a robust economic recovery on the housing market.  They should consider that one demographic particularly badly hit by its collapse has a long memory.  That’s because they’re young.  They’ll be around for a long time, and will bear its scars financially and psychologically. Read more »

The Payroll Tax Cut and U.S. GDP Growth

by the Center for Geoeconomic Studies

Breaking Down 2011 U.S. GDP Growth

U.S. annualized real GDP growth of 1.2% through Q3 2011 was driven by personal consumption, accounting for 91% of it.  Yet only 44% of personal consumption growth was driven by higher incomes.  The other 56% was accounted for by unsustainable items: a decline in savings (36%) and the payroll tax cut (20%).  The latter will expire in two months time unless Congress acts to extend it again. Read more »

Does “More Europe” Mean More Pro-Cyclical Fiscal Policy?

by the Center for Geoeconomic Studies

Europe's Pro-Cyclical Fiscal Policy

“It is time for a breakthrough to a new Europe,” German Chancellor Angela Merkel said on November 9th.  “That will mean more Europe, not less.” Merkel wants a stronger fiscal union with strict controls on eurozone national budgets.  Yet to date EU fiscal policy, such as it is, has meant ill-considered pro-cyclical spending programs – as shown in the graphic above.  Greece was and is a large recipient of EU transfers, yet those transfers collapsed by 1.3% of Gross Domestic Product (GDP) after it was forced to cut back on its contributions to EU-subsidized projects in an effort to slash government spending.  This additional fiscal squeeze hurt growth; Greek GDP fell an annual average of 3.5% in 2009 and 2010.

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