2019-07-05 09:32:00 Fri ET
technology social safety nets education infrastructure health insurance health care medical care medication vaccine social security pension deposit insurance
Warwick macroeconomic expert Roger Farmer proposes paying for social welfare programs with no tax hikes. The U.S. government pension and Medicare liabilities are $47 trillion in total. As Farmer suggests, national treasuries should establish social care funds, and these public funds borrow money at low interest rates and invest the proceeds in many international stock markets. A recent study analyzes data from OECD economies over a century and empirically shows that the average stock return is about 7% above the return on government bonds. Also, the average equity risk premium ranges from 3.8% in Denmark to 9.9% in Japan. Stock market idiosyncratic volatility may not fully accord with economic fundamental factors such as size, value, momentum, asset growth, operating profitability, and market risk etc. This volatility instead shows the animal spirits and sentiments of investors who often buy and sell shares on the basis of self-fulfilling prophecies of greed and fear.
When the government institutes social care funds, these public funds can smooth out short-term stock price gyrations to invest in the long-term fundamental health of the global economy. The key Farmer proposal may work well in practice as most public funds can then earn an average 4%-7% equity premium per annum.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-03-15 07:41:00 Thursday ET

The Trump administration's $1.5 trillion hefty tax cuts and $1 trillion infrastructure expenditures may speed up the Federal Reserve interest rate hike
2021-02-02 14:24:00 Tuesday ET

Our proprietary alpha investment model outperforms the major stock market benchmarks such as S&P 500, MSCI, Dow Jones, and Nasdaq. We implement
2023-07-28 11:28:00 Friday ET

Lucian Bebchuk and Jesse Fried critique that executive pay often cannot help explain the stock return and operational performance of most U.S. public corpor
2020-03-05 08:28:00 Thursday ET

The Stanford computer science overlords Larry Page and Sergey Brin design and develop Google as an Internet search company. Janet Lowe (2009) Google s
2023-02-14 09:31:00 Tuesday ET

Eric Posner and Glen Weyl propose radical reforms to resolve key market design problems for better democracy and globalization. Eric Posner and Glen Weyl
2023-11-30 08:29:00 Thursday ET

In addition to the OECD bank-credit-card model and Chinese online payment platforms, the open-payments gateways of UPI in India and Pix in Brazil have adapt