The housing crash of 2008 is something that really interests me. Not only did it play a major role in shaping our economy but financial markets collapsed because of it. I am taking a deeper look into the housing bubble’s adverse affect on minority wealth creation in the United States. In my mind, this is an important topic. The main form of wealth creation is owning a home and if that is taken away from individuals how will minority families and families in general build wealth in the United States? I also want to take a look at why the crash was a good thing for the mortgage backed securities market.
I hope to show that housing is a diving force behind wealth creation within communities. Housing is roughly 17% of our GDP and I am aiming to show how important home ownership is.
After reading the first three chapters of Poor Economics, I am throughly enjoying the book. I appreciate how the authors present both sides of problems by giving case studies and follows up by giving statistical information to allow the reader to make their own conclusion. What is unbelievable is the passion that the reader (or at least me) gets from the authors. While reading this book one can tell that both authors feel strongly about the subject matter. What I also like about this book is that it gives the numbers behind poverty. Personally, I’ve come across information such as, 1 in 5 children in South Asia and Saharan Africa die of diarrhea (p.42). I understand that is not a major statistic but I feel that many times these types of numbers are not presented to the public.
On page 26 the author states that the percentage of people who consider that they do not have enough food has dropped from 17% in 1983 to 2% in 2004. They introduce this statistic by giving background information on a 2,400 Philippines diet and, furthermore, stating that this information held consistent with evidence from an Indian survey. I believe they do use this statistic to support the basic thesis of the chapter; however, this statistic, in my mind is skewed. While I do believe that the world has more than enough food to adequately feed individuals caloric needs, there are many underlying factors that can inflate that statistic. For example, what is considered “having enough food”? The problem I have with this statistic is that their is no standardization nor definition of what people consider having enough food is. While governments and world food organizations can view this through strictly a caloric standard, people like Pak Sohlin are still jobless and poor.
Although this may seem far off I can compare this idea to the idea that many Americans see themselves as middle class. Many Americans make this judgment not based off actual statistics but rather through a comparasion to their surroundings. Essentially, people see that they have about the same amount as their neighboors and feel as if they are more well off than the next individual. People are hesitant to consider themselves “poor” although statistically, they may be. Do the poor consider that they have enough to eat because they are truly better off or is it an acceptance of the norm?
I was first introduced to blogging about a year ago when a good friend of mine decided to start a company. My pre-conceived notions about blogging were undoubtably undone when I witnessed, firsthand, the real power of blogging. Through the use of his blog, he was able to gain exposure, grow his business organically, and create new ideas through his words and interactions with others. Blogging is completely unique to other forms of writing because of connection formed between the blogger and followers. Unlike the paper, scholarly articles, and the media bloggers get to interact with individuals who are generally interested in what they have to say on a more personal level. Searching the web, I found several economic blogs and depending on the size of the blog posts range from daily to weekly. What I found interesting about the sites that I read were their unfiltered nature. Blogs give writers the chance to really put their thoughts and ideas out there no matter how far off they seem! Although my experience with blogging is limited, I can see the importance of it in our ever increasing digital world and I am interested to learn more.
The blogs I followed:
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