Warren Buffet is wrong about taxing the rich. Our country has plenty of natural resources and the value of these resources exceeds millions of dollars. We have abundant agricultural land, water supplies, energy and mineral sources. Our net worth of business and households amounts to $71.5T. Economic crisis has weakened our country, but still we are resilient. Thanks to our natural resources and net worth, our economy is still the largest in the world. However, if the economic crisis continues, the prosperity of our future generation would be affected largely. We need to take some steps to protect our business and household assets to ensure the affluence of our future generation. Jobenomics authored by Chuck Vollmer provides the best way to safeguard our assets. You can get a copy of this book from www.jobenomics.com
Our government receives nearly $2.1Trillion as tax revenues every year. It spends this amount for various national programs and services. Our Gross Domestic Production is $14 Trillion. The net worth our business and household assets is $71.5T. Household assets represent nearly 3/4th of the net worth and the remaining 1/4th is represented by business assets. The Federal Reserve specifies that the net worth of business assets is $18.1Trillion and the net worth of household assets is $53.4 Trillion . Corporation and non incorporated business assets are the major categories under business assets. Equity, real estate and life insurance or pension fund are the main categories of household assets.
Prior to recession in 2007, the total net worth of business and household assets touched its peak at $87.6T. We lost $20 Trillion worth of net worth during recession, but managed to recover $8 Trillion in the next three quarters. We can consider this recovery as a sign of prosperity. However, we need to remember that this rebound is a result of stimulus packages worth $12 Trillion provided by the government to encourage our stock and real estate market. When these stimulus packages end, we can clearly understand whether we are in the recovery phase or not. If we simply look at our assets, we can get a peaceful feeling, as our financial landscape looks better. We are still a rich country and have a lot of resources. However, the stake is not about our future. It is the future of next generations that is at stake.
The Great Recession hurt household assets significantly, because of the high percentage of stocks and real estate in individual portfolios. Pension fund is affected by unemployment and derivatives. California’s CalPERS can be cited as a right example here. It is the largest pension fund in our country. It lost 30% of its value in the last two years. We can protect our business and household assets only by increasing employment and restricting spending. It is very difficult for our government to spend more for the economic recovery process. Jobs creation is the best way to protect our assets for our future generations. Jobenomics emphasizes the importance of generating at least 20 million new jobs by 2020. It provides some practical ways to move forward in our recovery process.