Income Tax Graph

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Income Tax by Age, Location, Income and Exemptions

Samsung SIII v iPhone5

Result of US Economic Policies

Gini Index is a measurement of income inequality in a country. A lower number (0) indicates wealth dispersed in a more equal way. The higher the number represents a disproportionate tilting of wealth to a very small segment of society.

The chart represents 1967 to 2011 and shows a timeline which includes recessions. 

In 1967 the United States had a rating significantly lower than now. Much on par with other world economic powers. During this time the American middle class enjoyed and participated in economic growth.

Note the dip during the 70s recession and prior to the most recent recession. Which indicates wealthier people did not gain just prior to the recession. Further, note the increases during periods when Reagan and George Bush (1) were in office. The greater wealth reflected since 2008 is exaggerated due to economic downturn which has impacted the working and middle class of America.

According to the most recent CIA and Census data; at this time the United states has a rating much like the income disparity of the following countries: Mexico, Argentina, Ecuador, Venezuela, China, Malaysia, Sri Lanka, Cameroon, Mozambique, Uganda, and Ivory Coast.

To say the economic policies of the recent past are working for the American middle class would be a mistake if you look closely at this and other economic data.

http://www.freakonomics.com/2012/09/13/is-income-inequality-rising-and-are-a-lot-of-feathers-heavy/

Social Media, Economic Expansion Opportunities

I have been extremely lucky in my social media experience. I have sought out and found many credible and aspiring people in business as well as above average mindsets who are capable of challenging and educating me with their experience, wit and conversations. I have shunned using it for personal reasons until I better understood how to use it for business.

I have found people from all over the World that have similar interests, can tolerate my eccentricities, language, and humor and still thought I was a worthy colleague in business or a worthwhile mind. I have been lucky in that regard and that people share their life and business knowledge with me regularly.

That said, too often we overlook the basic fact that knowledge and skill is ultimately a worldly commodity. Social media allows us to help isolate people with the skill or knowledge we desire to be in contact with. Connecting to great minds and those able to facilitate change is the real value of the internet. It is the thing that governments and some corporate interests fear about the internet as a tool.

I am particularly amazed when I look at the facebook connections map.  If you look at the map it shows economic expansion and growth has reached all sorts of people and regions that were previously not middle class. In some cases just a generation or two ago most people were working in fields or in a feudal, communist, theocratic or repressive region.

To me the map alone is clear evidence that representative democracies and capitalism work for the majority of the people in the world. To me that means economic expansion and educational opportunity. This means a larger worldwide intellectual or skill base and larger economic opportunities.

So as I see it social media is the next generation of economic growth that the internet brings forth.

Just remember Bill Clinton and Al Gore brought a private military, NSF and educational resource to the consumers shortly after they were elected. That was the mid-nineties. That one act has changed the economy and the world. It has expanded opportunity, education, access to information and ideas.

Before the internet there was the creation of the personal computer which changed the world view. That was in the mid-eighties.

We stand at the beginning of a new world as we watch the old world die. I am very bullish and positive on our future. We have more opportunity for more people than ever before and savvy business people will thrive because of that!

Business opportunity is not dead because of one politician or the economy. Business opportunity is now a merit based opportunity which depends on how one thinks and if one can gather the resources needed to bring an idea to the marketplace. As an individual you have an advantage over larger companies and you have the opportunity presented by this new world technology.

Happy hunting!

America's Legacy and Future Opportunity

I like to think we as a people are still the beacon of opportunity for the world. The positive perspective other peoples have for the United States ebbs and flows in cycles. America has never lost the shiny sheen the world looks for, the opportunity and ability to inspire hope and dreams.

People forget what America has and continues to contribute to the world. That the majority of people’s lives have improved because of what has happened in America, what has emanated from America and it’s people, our ideals and economic expansion.

People further forget that it was America which worked hard to improve the lives of others living under colonial rule. A recent example is the Atlantic Charter (1941) where by agreeing to help Britain in WWII America outlined a future after WWII without colonization and a rule of law derived from the people as set forth by an American example.

As has often been the case; sometimes it takes a defining moment for a people's will to be brought forth and a change made.

I believe we live in such a moment and we are experiencing the last gasps of the old industrial and class world trying to retain its economic and mental grasp on the world's populace. We stand in front of future knowing we live in a meritocracy where education is the limiting factor to increased opportunity.

We are ready to evolve, due in part to people in technology, science and freethinkers. This change did not happen because of religion or state sponsored enterprise. While the state spending on military projects brought the computer, people engaged in business created the marketplace of technology we now see. With the technology of today and enhanced technology of the future we will have more opportunity. The entry to opportunity will be at a lower cost and more easily accessible. One's education can be freely available and thoughts more easily transmitted, understood faster and with greater acceptance.

In my opinion, now is truly a momentous time for humanity, democratic republics, capitalistic societies and the world. We stand at the precipice of the uncertain future with greater opportunity for more people and a better lifestyle for most people than ever before in history. People, technology and will to do more without the control of big corporations or the investor class controlling as they have in the past.

I know it sounds jingoistic and sappy. I just cannot help but be bullish and optimistic for our future and that of the world. I hope my optimism is contagious.

For further reading on the Atlantic Charter: http://history.state.gov/milestones/1937-1945/AtlanticConf

Three Events Which Slowed Progress

I was talking about history last night with a friend. I was telling him about the Golden Age of Islam and how it ended.

At one time Islam was open, tolerant and intellectual. This was prior to Imam al-Ghazzali (1058-1111) who started a movement based on theology which eventually would end the period of scientific discovery or the Golden Age of Islam. This age of enlightenment, literature, culture, mathematics, astronomy, medical advances and public education; this was enjoyed in much of the Islamic world. This age would span almost 400 years then end abruptly with the sacking of Baghdad.

Imam al-Ghazzali was so influential he successfully changed the course of Islamic philosophy. His book "The Incoherence of Philosophers" successfully refuted logic and reason used in the past by stating that those who employed Greek intellectual methods and ideas were corrupting the Islamic faith.

One has to wonder about three events in history which slowed intellectual discovery:

1. Sacking of Rome by Alaric and the Visigoths in 410ce 
2. Theodosius' decree, Christians sack Library of Alexandria. They then strip, murder and flay Hypatia in 415ce 
3. Sack of Baghdad 1258ce by the Mongols 

All three examples show us a society, culture and intellect taken down by ignorance and fear. Imagine how much more advanced we would be as a people had these three events not occurred.

In Rome alone, they had running water, flushing toilets, heated houses through radiant floor heat and hot water when needed. These are just a few examples of what was lost.

It would take over 1000 years to get some of that back for the rich people in society. It would take until post WWII for the majority of Americans to have that level of lifestyle.

It would be a shame to get set back again because of religious fanaticism and ignorance. Maybe it is time for reasonable people to start confronting those who use Fox talking points and loud talk instead of tolerance, reason and facts.

America's future is cemented in its educational system and the sciences. Our economy, culture and lifestyle depend on a future with a foundation in intellect, creative thought, arts, math and the sciences.

Entrepreneurship Revolution!

I recently had a discussion with several people regarding the popular belief that America and the economy were on the decline. Several indicators and research show that is not at all factual.

My position is that America will not lose its prominent position in the World. That we shall grow as a country when we as a nation stop bickering about cultural opinions on how others live in this country. When we realize our collective future is greater than leadership in this current political austerity movement will have us believe (solely for one party’s political gain).

That with good leadership, goals, understanding and tolerance of the diversity in America and on our planet, with greater educational opportunities America can impact and influence our future and the future of others.

At this time, America is the economic engine that drives the capitalistic world. When America’s economy expands the World economy will benefit. As Economies and countries benefit from American economic expansion their constituents will benefit as they are better able to enjoy their lives. Gain access to more opportunity and expand their middle class in countries not as advanced as The G7 (I did not include Russia).

I Believe America and America’s small business startups in tech will spur economic growth, will create more jobs and add to the taxable income base. This will allow America to pay down debt, reduce deficits and add budgetary items which will further expand the economy. Our well educated people and entrepreneurs will inspire the world again.

Through economic growth Americans can change the premise that our lifestyle is slipping away from us and that America is on the decline. We can change perception; we can lead people to believe and accept the premise that we alone can impact and create our own future. That one does not have to accept the fate put upon us by others. We alone are the masters of our future.

Technology enables us to change our job, education and experiences as well as income levels and education more easily than at any other time in history.

I am a startup founder, entrepreneur and venture capitalist because of that belief. I am surrounded by a great multitude of others with the same belief. I am involved with companies and individuals that enhance, encourage and support the startup experience. These people and companies will help America and show us the many positive ways entrepreneurship improves our lives and the economy.

I believe that our leadership and citizens need to be of the same opinion and should take positions which support entrepreneurship and education to achieve that result.

I am bullish on America, please join me!

Patterson Cycles in Technology:

I talk a great deal about startups, especially tech startups, entrepreneurs and entrepreneurial communities. As I talk I often speak of cycles in the tech startup world and technologies. When people ask about the cycle of tech startups and tech funding my answer is often confusing to them because they are unfamiliar with what I talk about. I like to mention the Patterson Cycle to them; this post seeks to address some issues with the Patterson Cycle.

Arthur Patterson postulated that the tech industry follows an approximate 14 year cycles - 8 years of growth and 6 years of "retrenchment". This pattern has held up since the 1960s. Most likely the current cycle began in 2000/2001 (6 retrenchment years) and will last until 2014. The best time for VC returns are supposedly at the end of the cycle (the next 3 years).

Every cycle has both a supply and demand cycle. In the case of this one, it is the supply side (availability of great new companies) which determines timing, despite the attention the demand side (investor money sloshing around chasing higher returns) gets. The underlying secular forces of creative destruction are at work at the bottom of the Information Technology stack -eg 30% per year productivity increases for semiconductors, fiber optics, software development methodologies, etc. Observably, these secular forces require about 14 years to obsolete the existing order and set the stage for most of the great companies (and IPOs) of the next generation. We'll see hundreds of these companies pace the "new bubble" for the next few years. Enjoy it and hope no macro events (the government) interrupt. -Arthur C. Patterson

http://www.accel.com/bio/arthurpatterson.php