How to make an island

Do you need to get away from it all? Do you crave an island of your own? Richie Sowa was in that position. Rather than find an island or buy one, he decided to make his own. The foundation of his island is consists of empty plastic water bottles. Sowa is now growing his own bananas, coconuts, spinach, almonds and tomatoes. In the video below, he says that he has everything he wants. Although his island is currently in Mexico, he plans to keep increasing the size of the island, until he sets out to sea.

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Cost of raising a child

How much does it cost to raise a child? According to the Associated Press:

For $235,000, you could indulge in a shiny new Ferrari — or raise a child for 17 years. A government report released Thursday found that a middle-income family with a child born last year will spend about that much in child-related expenses from birth through age 17. That's a 3.5 percent increase from 2010.
This immense amount of money required to raise a child has serious ramifications. At this time, though, I would merely like to note that there are (assuming a child sleeps 8 hours a day) a child is awake almost 100,000 hours over 17 years (17 years x 365 days x 16 hours waking time per day). That means that it costs parents about $2.35 for each of their children's waking hours. But parents don't necessarily get to enjoy the company of their children during every one of their child's waking hours. I'm going to make a great leap and guess that parents only spend about 4 hours per day in the company of each of their children each day over a period of 17 years. Therefore, parents spend about 24,820 hours in the company of their children over 17 years. Therefore, it costs parents ($235,000/24,820) $9.47 for each hour that they actually get to spend with each of their children during the first 17 years. Quite often, this can be a great bargain, at least in my experience.

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Joseph Stiglitz details the many aspects of economic unfairness

Joseph Stiglitz has written a new book confirming what many of us have been seeing and feeling:

If markets had actually delivered on the promises of improving the standards of living of most citizens, then all of the sins of corporations, all the seeming social injustices, the insults to our environment, the exploitation of the poor, might have been forgiven. But to the young indignados and protestors elsewhere in the world, capitalism is failing to produce what was promised, but is delivering on what was not promised—inequality, pollution, unemployment, and, most important of all, the degradation of values to the point where everything is acceptable and no one is accountable.

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Growing income disparity and its consequences

Joseph Stiglitz has some shocking numbers:

Nowadays, these numbers show that the American dream is a myth. There is less equality of opportunity in the United States today than there is in Europe – or, indeed, in any advanced industrial country for which there are data. This is one of the reasons that America has the highest level of inequality of any of the advanced countries – and its gap with the rest has been widening. In the “recovery” of 2009-2010, the top 1% of US income earners captured 93% of the income growth. Other inequality indicators – like wealth, health, and life expectancy – are as bad or even worse. The clear trend is one of concentration of income and wealth at the top, the hollowing out of the middle, and increasing poverty at the bottom.
This is troubling, but not merely for a sense of mathematical equality or even gut level justice. This is bad news because income disparity hurts people in predictable and demonstrable ways.

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If interest rates fall in the economy, but no one notices . . .

Here is a thoughtful mass email I received today from Alan Grayson:

Dear Erich: Yesterday, the 10-year Treasury note hit its lowest interest rate in history. For the third day in a row. I didn't hear that reported. Did you? Treasury notes started trading in substantial amounts during World War I, almost 100 years ago. Until Wednesday of this week, the lowest interest rate in history on 10-year notes was 1.672%. That was in February 1946, twelve years before I was born. (That rate re-appeared, for a few brief moments, last September.) On Tuesday, the rate for 10-year notes closed at 1.73%. On Wednesday, the rate dropped past the all-time low, and kept going, finishing at 1.62%. Thursday set a new all-time low, finishing at 1.58%. On Friday, the rate for 10-year notes finished at 1.47%. That's a 15% drop. In three days. The yield on 10-year Treasury notes actually plunged all the way down to 1.44% during Friday trading. That's the new all-time low. Until Monday, at least. Here are some questions that come to mind: Why is this happening? Is this good news or bad news? (Hint to Obama Administration: you can take credit for it.) Will the trend continue? What does it mean for the middle class? For mortgages and car loans? For corporate profits? For fiscal policy? Who gains and who loses? Unfortunately, there are no answers to any of these questions today, because reaching a 100-year low in interest rates is not considered news. Here are the headlines yesterday from the Associated Press: The unemployment rate rose from 8.1% to 8.2%. The UN Human Rights Council voted to condemn Syria. There was a large fire in New Mexico (video!). A black bear wondered into a schoolyard (more video!). Here are the headlines yesterday from ABC News: A teacher slapped a student. A roommate issued a humorous apology for taking someone else's milk from the fridge. "Why Idiot Humans Are Best Cyber Weapon" A new record was set for world's longest Ferris Wheel ride. A mother choked a bully. I hate to be a scold. I really do. But important things are happening. Can someone in the media, or among our so-called leaders, please pay some attention? Please? You can't lead people anywhere if your eyes are closed. Courage, Alan Grayson

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