Saturday, October 16, 2010

Business And Charity

Santa Claus with a little girlImage via Wikipedia
Wall Street Journal: World’s Richest Man: ‘Charity Doesn’t Solve Anything’: he could do more to help fight poverty by building businesses than by “being a Santa Claus.” ..... “The only way to fight poverty is with employment” ..... “There is a saying that we should leave a better country to our children. But it’s more important to leave better children to our country.” ..... He has contributed hundreds of millions of dollars to his foundation and has funded millions of dollars in joint-venture projects with the Bill and Melinda Gates Foundation.

This reminds me of the gay marriage debate. The last scientific figure I read had gays at 1% of the population. As in, one per cent of the people are biologically gay, they do not choose to be gay. That is who they are. Some put that figure to be 10%. I think it probably is 1-2%.

Men and women marrying works. It works for 98% of the population, or those among the 98% who choose to marry. But it does not work for everybody.

I agree that creating jobs is a great way to cure poverty. But the best economists say no matter how hard you try, 5% of the people will stay unemployed. The economy needs a 5% unemployment to stay healthy. Those 5% are not being lazy. There just are not going to be jobs for them.

Some people are going to be poor. Some people are going to end up homeless. There charity comes into the picture.

But what the Bill And Melinda Gates Foundation is doing is not charity. Tackling health care in the Global South is not charity. That foundation has challenged many long held prejudices about poverty in the Global South. You make these people healthy, and they go out there and get jobs and work hard and lift themselves out of poverty. You give them family planning options, and they have fewer children. They have not had the option.

People should go get jobs, but you would not argue that for primary education age children, would you?

Private business has its place. The private sector takes care of about 80-90% of the population. The public sector gives employment to the other 10-15%. And then there are the unemployed who deserve unemployment benefits. There are the poor who need charity and social welfare. It is important to also think of that bottom 5% to keep the social peace. That is also important.

Everyone should have access to education, health and credit at all income brackets all over the world. Most people don't, and that is a problem. Between the private sector, the public sector, the informal economy, the NGOs and the charity organizations, all bases should be covered.

There is no one size fits all.

Wall Street Journal: The Rising Threshhold for Being in America’s Top 1%: the threshold for the One Percent Club has more than quadrupled since 1980 ..... A salary of $80,580 in 1980 would be $207,920 in 2008 dollars. But that still is far lower than the $380,354 required to make the 2008 cut-off. ..... In 2008, the top 1% accounted for 22.8% of the nation’s reported income, up from 8.46% in 1980.

Why the Wealthy Are Paying Less of America’s Taxes: the rich are running away with a disproportionate share of the nation’s income but paying ever lower taxes. .... the rich are indeed paying a lower share of the nation’s tax burden. But that’s because the rich are losing income. And while their share of the nation’s earnings is falling, their average tax rate is rising. ..... the top 1% of tax returns paid 38% of all federal individual income taxes ..... The top 1% paid an average income tax rate of 23.27% .... the top 5% of tax-payers earn 34.7% of income and pay 58.7% of taxes.

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Friday, October 15, 2010

What Do You Want To Be When You Grow Up?

Image representing Etsy as depicted in CrunchBaseImage via CrunchBase

I am in my 30s. Isn't it a little too late to be asking that question? I take solace in the fact that we live in an era when people will have a few different careers before they retire and go ahead and die. That would be fine except I seem to be having a few different careers at the same time, in parallel: no complaints. I have tried to learn positivity from my man Obama.

Finally I might have found it: a for profit micro finance startup with IPO ambitions. (Microfinance: The Next Big Thing?) And the fact that I am about a year away from my green card feels like no hindrance at all. I will just get someone else to incorporate the company. The conversation is in full swing, the work is on.

Google Car, Google Monorail
Physically Aware Internet
Solar Panels To Roll Out
To Natural User Interface
Offshoring The Wind Harvesting: Google Wind
Etsy, GroupOn, Zynga
Becoming Whole With The Mobile Web
NEW YORK - SEPTEMBER 26:  Microfinance pioneer...Image by Getty Images via @daylife
Before this I have been emailing my 12 line resume - in text format, my machine does not have Microsoft Office on it - to all sorts of people on Craig's List. For the longest time I did not even send cover letters. What is that? The thing is I have never had a job. Don't ask how that came to be, but that is the fact. Then I started sending cover letters, the same standard, half hearted cover letters where I was calling all sorts of jobs my "dream job." The truth is there is no dream job out there. My dream job necessarily has to be self created.

Then I have thought of tech consulting and social media consulting. (An Online Social Media Instructor, Not Your Usual Yoga Guru)
NASDAQImage via WikipediaThere are more than a dozen coders in India on stand by for me as we speak. I find them projects, they get working, I pay them their hourly rate, take my cut, and we all end up happy: that has been the idea. (Becoming Whole With The Mobile Web)

I just talked to the guy in Kerala last night, and to the dude in Pittsburgh today.

I was going to doodle along for a year like that, doing a few things, but not really doing much, learn some Scala along the way, (Al Wenger Wants To Learn Scala) and get into the mobile web upon getting my green card. I have a mobile app in mind that would grow from the small screen to the big screen.


I have had people ask me if I might have run for president if I had been born in the US. First of all, people, I am utmost flattered. But that question is too theoretical. That is like asking what would life be like if earth had moon's kind of gravity. The mental exercise is not worth it. Microfinance fascinates me, the affordable housing issue in NYC does not.
Groupon logo.Image via WikipediaThere are a few things I wanted to do in tech, but then I will keep my serial entrepreneur options open, and perhaps I will get to invest in ideas that I might not get to bring to fruition myself.

Large scale group dynamics is my thing. I am really, really good at it. (Iran) Even when I have expressed Nasdaq headed tech company ambitions, I have thought more in terms having money to pour into microfinance, and less in terms of private jets. But why take that long route? Why not go straight into microfinance? There is no limit to how much money you can raise if you do it right. This is potentially a market in the trillions of dollars.

But make no mistake, the tech part of this startup is central to what it is going to be. This is first and foremost a tech startup. The concept feels like having your cake and eating it too.

This is one brave new century.

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