Month: November 2008

Only Essential Matters – When IT Budget is shrinking

 

Architect will be forced to think economics first and then technology. Also, architecture will be about leveraging the existing infrastructure and then plan IT spending for only the essentials. ART in Architecture will still matter. The above curve looks like a bell curve. This is another example of extreme linearization resulting into gaussian distribution.

Advertisements

Extreme Linearization results into Extreme Disparities

Extreme linearization leads into extreme exponential distribution resulting into extreme disparities. Top 20% in US earn 50%  income and own 85% wealth. The rest of the 80% earn the rest of 50% and own only 15% of wealth. The question is what or who is EA serving. The 20% or the 80% of the population or is it the income or to the wealth. Or, all put together.

In the context of TARP and the percentages of tax paid by different demographics – who is paying whom? Those who shored up losses by the marginalizing the working class receiving the bail-out?  In other words, to the losses white collar contributed, how much is the blue collar paying in bailout.

Recent Article

Concentration of wealth in hands of rich greatest on record

Share on Facebook
BY DANIEL TENCER

Published: August 15, 2009
Updated 1 day ago

The wealthiest 10 percent of Americans now have a larger share of total income than they ever have in records going back nearly a century — an even larger amount than during the Roaring Twenties, the last time the US saw such similar disparities in wealth.

In recent years, the fact that differences between rich and poor are the greatest they’ve been since the Great Depression has become a popular talking point among liberal-leaning economists.

But an updated study (PDF) from University of California-Berkeley economist Emanuel Saez shows that, in 2007, the wealth disparity grew to its highest number on record, based on US tax data going back to 1917.

According to Saez’s study, which Nobel prize-winning economist Paul Krugman drew attention to at his New York Times blog, the top 10 percent of earners in America now receive nearly 50 percent of all the income earned in the United States, a higher percentage than they did during the 1920s.

“After decades of stability in the post-war period, the top decile share has increased dramatically over the last twenty-five years and has now regained its pre-war level,” Saez writes. “Indeed, the top decile share in 2007 is equal to 49.7 percent, a level higher than any other year since [records began in] 1917 and even surpasses 1928, the peak of stock market bubble in the ‘roaring’ 1920s.”

By comparison, during most of the 1970s the top 10 percent earned around 33 percent of all the income earned in the United States.

The contrast is even starker for the super-rich. The top 0.01 percent of earners in the US are now taking home six percent of all the income, higher than the 1920s peak of five percent, and a whopping six-fold increase since the start of the Reagan administration, when the top 0.01 percent earned one percent of all the income.

There is no consensus among economists on whether large disparities in income lead to economic disruption, but it is hard to ignore the correlation between rising income inequality and the onset of economic crisis. The last time the US saw similar differences in income was in 1928 and 1929, just before the start of the Great Depression.

Saez also broke the numbers down by administration, and found that while the wealthiest few saw their incomes rise as quickly during the Bush years as they did during the Clinton years, the same was not true for the rest of the population.

Saez suggests that the economic growth seen on paper during the Bush years was little more than an illusion for the vast majority of Americans, who saw their income grow much more slowly in the 2002-2007 period than they did during the Clinton years.

During both expansions, the incomes of the top 1 percent grew extremely quickly at an annual rate over 10.3 and 10.1 percent respectively. However, while the bottom 99 percent of incomes grew at a solid pace of 2.7 percent per year from 1993–2000, these incomes grew only 1.3 percent per year from 2002–2007. As a result, in the economic expansion of 2002-2007, the top 1 percent captured two thirds of income growth.
Those results may help explain the disconnect between the economic experiences of the public and the solid macroeconomic growth posted by the US economy since 2002. Those results may also help explain why the dramatic growth in top incomes during the Clinton administration did not generate much public outcry while there has been an extraordinary level of attention to top incomes in the press and in the public debate over the last two years.
Saez, who this spring won the prestigious John Bates Clark Medal for economists under 40, links this disparity to the Bush tax cuts, noting that “top income tax rates went up in 1993 during the Clinton administration (and hence a larger share of the gains made by top incomes was redistributed) while top income tax rates went down in 2001 during the Bush administration.”

TWO MORE RECESSIONS?

The economic crisis that has taken hold over the past year isn’t over, and the world could in fact see two more recessions before the crisis is finally over, says the chief economist of Germany’s influential Deutsche Bank.

Norbert Walter told CNBC that investors are worried about the health of the US dollar, and many countries are facing difficult financial problems because of overspending by governments on bailouts and stimulus. Those things combined could push the world economy downwards not once but two more times in the near future, he said.

“I believe that the rescue packages brought on have been so costly for so many governments that the exit from this fiscal policy will be very painful, very painful indeed,” he said. “Some of us are already talking about a W-shaped recovery. I’d probably talk about a triple-U-shaped recovery because there are so many stumbling blocks here to get out of this.”

“The world is in trouble,” Walter told CNBC.

In Lack of Theories – Planning will be along a Straight Line

Light bends in a gravitational field

Einstein's prediction (1907): Light bends in a gravitational field

Enterprise Architecture as a discipline promotes a framework of theories useful for planning the enterprise behavior. It might take years for verifying a theory; but in lack of it, manifold years will be needed to salvage the wrong done. In lack of theories the planning will be along a straight line, completely missing what mind should have uncovered and rather relying on what meets the eye. Furthermore, while acknowledging that planning is not moving along a straight line, it also must factor that random action exists that gives rise to unpredictability. This means detecting actions that leads into fragments and anticipating consequence due to them is very important both in structure and in behavior.

Most important among all other theories in the realm of EA is ‘Theory of Constraints’. Per ‘Programmed Cell Death’ A Constraint provides information about the current state and why it evolved into its present state from the past. Also, it provides inference into the possible future state. TOC also ties into system dynamics that can be explained by entropy. All these together has a consequence in terms of the behavior, especially with the probabilistic determinism at macroscopic level and indeterminism at microscopic level. The all encompassing behavior of the enterprise as an instrument with no beginning and end is explained by ‘implicate order’, which also accounts for generative transformations by unfoldments the DNA of which exists enfolded. All encompassing means an inclusive and a pluralistic architectural framework.

Checkout: Creative People At Work – Tribute to Einstein’s Thought Experiment – “Traveling On a Beam of Light”.

https://ingine.wordpress.com/2008/12/01/creative-people-at-work/

Emergence of Universe – Thought Experiment that traces the origin of Universe and where possibly it might go. This is study of generative transformation.

https://ingine.wordpress.com/2008/12/06/enterprises-in-generative-transformation-akin-to-universe-life-cycle/

9 Billion Dollar Scientific Experiment – To verify the creation of world. Why do we need this? Keep asking this billion dollar question (that is 9 times manifold, 1000 times manifold – a million dollar question)

TARP for White Collars and a Harp for Blue Collars

Is TARP a Trap?

TARP is not an inclusive system that addresses the blue collars. The auto industry still has to go begging, while the viscous white collared finance service sector gets blessed under TARP.

Hey! you poor blue collar insolent fool can’t you just twiddle on your HARP and sing your blues away. At-least as a rejoinder to the apathetic Nero who is happy fiddling TARP and stoking to your misery, despite having a amok run with your money, while you undeservingly did not dread the drudgery. Or, can you wake-up poor sloth fool, else the Machiavellians will drain you further clean.

 

Unemployed Harpist

Unemployed Harpist

Social Entrepreneurship – Change at Grass Root Level (George Foundation)

Enterprising uprising – social development – value to the citizens

http://www.tgfworld.org/home.html

 

 

 

Abraham M. George

Dear Friends,

I write to you today to ask for your support.  For the past 12 years, The George Foundation has committed itself to breaking the cycle of poverty that impacts some of the world’s poorest children.  Our school, Shanti Bhavan, has become a beacon of safety, hope and opportunity for children who would otherwise have no chance to succeed in life.  

Shanti Bhavan was founded in 1996 in a rural village outside of Bangalore.  It is a home and an exceptional school for 210 children from India’s lowest or “untouchable” castes.  The children come from families that face constant social discrimination; they are deprived of the opportunity to live with dignity, and do not have access to proper education, employment, basic health care and human rights.  Shanti Bhavan, a non-sectarian institution, offers both a loving home and a world-class education for all its children. 

Today, we face an immediate crisis.  Recent changes in financial markets have limited the extent to which our family contributions can fund the full operating cost of the school.  We are struggling to maintain current services and anticipate that the next 1-2 years will be particularly challenging.  It is during this period that we need the support of generous individuals like you.

Shanti Bhavan is currently operating at $20,000 per month, which includes residential care, food, clothing, medical services, academic programming and administrative costs.  While the staff remains dedicated to the mission, everyone is stretched to the maximum with cost cuts.  With the help of several volunteers from India and abroad, we have been able to fill teaching gaps and provide adequate attention to the needs of the children.


In addition, over the past 5 months we have launched a major drive to raise donor funds.  We initiated a Sponsor-A-Child program that seeks $1,500 per child, which covers all the needs of a child for one year at Shanti Bhavan.  So far, we have secured more than 20 full sponsors, and an additional 50 individuals and organizations have made other contributions to the school. 


Shanti Bhavan is a very special project that should never be allowed to die for want of money.  The children have already proven themselves: In last year’s high school graduation exam, all of our students passed in first classes in the highly rated ICSE national examination — the first time in history that an Indian school for “Dalit” children has achieved such success. 

These children are a testament to the potential of quality education and care to transform the lives of India’s poor.  They and future generations of Shanti Bhavan children will make a lasting impact on communities who otherwise have no means to become productive members of a global society.  These children, like yours and mine, deserve a safe place to learn and grow.  Please join me in ensuring that the school remains open and the children have a home.

As you know, Shanti Bhavan has been the focus of my life and my familys work for over a decade. However, Shanti Bhavan belongs to everyone, and the time has come for every well-wisher to share the responsibility.  We are grateful for the response from our network of friends and volunteers. It would be a great honor and joy to include your support in our efforts.  Please consider making a contribution toward the annual operating cost of the school or an endowment fund whose interest would cover our needs.

 

I make this plea to you at a critical juncture in the life of Shanti Bhavan. You may make your contribution on-line at www.shantibhavanonline.org, or by check.


Kind regards,
 
Abraham M. George

 

P.S.  Checks may be made payable to The George Foundation and mailed to:

 

   In the U.S.: The George Foundation                In India: The George Foundation

   121 Hawkins Place, PMB 192                        316, 3rd Block, 5th A Cross, HRBR layout         

   Boonton, NJ 07005                                         Kalyananagar, Bangalore 560043

 

Cellphone based Micro-finance a transformation at grass-root level

Dichotomy accompanies the process promising  human Emancipation

Technology fueling micro-economics proposes to promote transformations at grass root level. Most importantly such a development is expected to augment self-determination for the marginalized. But the lurking danger is, the technology vendors are the investors for whom nothing matters but the ‘profit’ alone. Inherently, such scheme of things is bound to lead into dichotomy in the good intended purpose in the context of progress. Especially that accented for the poorest of the poor. Hazarding this danger, there still exists respite and an opportunity for the marginalized to seek expedited financial assistance, while acknowledging that for every transaction that a poor person affects, there exists a percentage to be paid to the investor. Careful harkening is begged, when Shylock is in the business of opportunity. That means to extract ($$$$) pound of (for) flesh. Poor’s man predicament is rich man’s opportunity.

Nevertheless, after dotting the i’s and crossing the t’s; for the needy who can afford a cellphone and is in productive vocation, it could prove to be Upwardly Mobile!


Upwardly Mobile

India is the fastest-growing mobile communications market in the world. The rural poor are rapidly adopting phones, so the technology could become a platform for providing banking services. Sanjay Swamy, CEO of the mobile-payment platform mChek, talks about the potential.
Video by David Talbot Edited by JR Rost

Bailout is (was) an Attempt to Saddle a Dead Horse

A Metaphor for Proffering a Dead System as a Solution

A Metaphor for Proffering a Dead System as a Solution – Pls Buy Picture from Devian Art

2013

Fast-forward Forbes reports dismal growth in small business sector

http://www.forbes.com/sites/joelkotkin/2013/03/13/wall-streets-hollow-boom-with-small-business-and-startups-lagging-employment-wont-pick-up/

2013 March – from above link 

<<Since big companies largely have recovered, and government employment has grown, at least at the federal level, clearly the real problem lies with the poor performance of smaller, and most critically newer, firms. In the past, young businesses bailed out the economy and spurred innovation. Yet today fewer than 8% of U.S. companies are five years old or younger, down from between 12% and 13% in the early 1980s, another period following a deep recession.>>

Also I am tempted to add that big business in their own motivation for fortune increase are also cause for demise of many small businesses. The coveting democracy and capitalism often times corroborate  at the cost of destroying free enterprise, while advancing their own schemes, as we have seen in awesome Movie Tucker – The Man and His Dreams

2008

Elusive Enterprise Darwinism (Nov 2008)

By saddling a dead horse the system cannot be changed. Resurrection is not change and it is best left to those who are above humans. The system pertaining to human will ever remain in the bondage of life and death. And, this system is governed by entropy. By merely doling out money to dying mechanisms newer mechanism do not appear. Only when a non-working system dies by a process of generative transformation newer system emerge. Bailout has the hazard of creating cancerous areas in the system. Studying programmed cell death it is evident that nature has desired that divine ‘death by design’ a willing suicide be a necessary intervention for regulating organism’s life-cycle. As the older mechanism dies it imparts newer properties and characteristics to the emerging mechanism. In the newer mechanisms the older parts that prove not to be useful to the newer function become the vestigial organs and they die. If the older mechanism is forced to perform in the newer paradigm requiring completely newer set of rules, they create stress within the existing structure and eventually the system will implode.

Some of the bail out money could have been directly be invested in the lower denomination who are suffering, while allowing for some of the institutions to undergo its natural decay. It must be borne in mind what bailout means to different sectors. Manufacturing sector and such employs more blue collar workers, while the Service sector employs more white collar workers. Among the two, it is the blue collar who are more in denial and it is these people who work tireless to render the system more economic.

Rising Like a Phoenix

Rising Like a Phoenix

What has to rise is not the dysfunctional economic system, but the existing mass with newer modes of making a living and a just-ful process of compensation. All most all the corporates have turned into a feudalistic system giving rise to machiavellian personalities that is useful to only handful of the masses. The hedge funds etc were to be used as instruments to an investment that would protect one from the future fluctuations.  Instead, it was deviously turned into instruments to be used for investing in abstract and complicated risks.

Change is difficult and needs bold moves from the masses. In the past land reform occurred and the feudalistic system was removed by passing land reform act ‘ land for the tiller’.  Moving forward, more such systemic development needs to occur especially newer economic system has to be planned that accelerates the micro-finance  distributing small and quick money that promotes small businesses.  What is needed is a syndication mechanism that promotes development at the grass root level. Furthermore, stringent rules have to be put into place that governs individual contracting. The existing laws are full of holes that exploits the vulnerable individual contractors. In this 21st century any notion of emancipation is a far fetched concept. But certainly there will be CHANGE as it has always happened. It is an entropic property of the system in which dwells both order and disorder. When change happens it will be a ‘step function’ – ferocious, fast and ruthless.

Refer Following Article Why Demise of Ill Conceived Business Should Fall:-

http://blogs.harvardbusiness.org/haque/2009/03/heres_why_we_should_let.html