Gallup Poll: Capitalism vs. Socialism Gallup Poll: Capitalism vs. - - PDF document

▶
gallup poll capitalism vs socialism gallup poll
SMART_READER_LITE
LIVE PREVIEW

Gallup Poll: Capitalism vs. Socialism Gallup Poll: Capitalism vs. - - PDF document

Mar 10, 2023 172 likes •375 views

Gallup Poll: Capitalism vs. Socialism Gallup Poll: Capitalism vs. Socialism Democrats Republicans 71% have a positive attitude 47% have a positive attitude toward capitalism toward capitalism 16% have a positive outlook 57% have

slide-1
SLIDE 1

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 1

Gallup Poll: Capitalism vs. Socialism Gallup Poll: Capitalism vs. Socialism

Source: Gallup Poll, August 13, 2018

Democrats

  • 47% have a positive attitude

toward capitalism

  • 57% have a positive outlook
  • f socialism

Republicans

  • 71% have a positive attitude

toward capitalism

  • 16% have a positive outlook
  • f socialism

Millennials: Capitalism vs. Socialism Millennials: Capitalism vs. Socialism

Source: YouGov/Victims of Communism Memorial Foundation study, Sacramento Bee, 11/4/2017

More Millennials would prefer to live in a socialist country (44%) than in a capitalist one (42%). 7% said they would prefer to live in a communist country.

  • 59% of U.S. adults prefer a capitalist country than a

socialist one.

  • 26% of Baby Boomers would want to live in a

socialist nation.

slide-2
SLIDE 2

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 2

“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.” – Winston Churchill

“There can be no liberty unless there is economic liberty.”

Margaret Thatcher

slide-3
SLIDE 3

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 3

Berkeley 1964 Watts 1965

slide-4
SLIDE 4

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 4

P = Prosperity Ft = Financial Technology HC = Human Capital SC = Social Capital RA = Real Assets

P=SFti*(SHCi+SSCi+SRAi) P=SFti*(SHCi+SSCi+SRAi)

Human Capital Social Capital Real Assets

Productivity:

  • Skills
  • Education
  • Training
  • Experience
  • Creativity
  • Habits
  • Values
  • Rule of law
  • Property rights
  • Public health
  • Universal education
  • Religious freedom
  • Police/fire protection
  • Cultural resources
  • Universal suffrage
  • Protection of creditors
  • Rigorous financial

reporting standards

  • Transparent markets
  • Regulatory continuity
  • Cash
  • Receivables
  • Real estate
  • Factories
  • Capital

equipment

  • Roads
  • Buildings
  • Infrastructure

Financial Technology

Innovative processes & components including:

  • Convertible bonds
  • Preferred stock
  • High-yield bonds
  • Collateralized loans
  • Collateralized bonds
  • Equity-linked

securities

  • Securitized obligations

(mortgages, credit cards, etc.)

  • Derivatives
slide-5
SLIDE 5

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 5

  • Collateralized loan obligations
  • Collateralized bond obligations
  • Securitized mortgages
  • Securitized credit cards
  • Derivatives
  • Convertible bonds
  • Preferred stock
  • High-yield bonds

Financial Technologies

U.S. and Fortune 500 Employment

America Goes to Work

60 80 100 120 140 160 180 1970 1975 1980 1985 1990 1995 2000

Modern capital markets begin New financial technologies are fully implemented U.S. = + 62 million jobs Fortune 500 = minus 4 million

Source: Bureau of Labor Statistics, Bloomberg, Thomson Reuters.

slide-6
SLIDE 6

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 6

“Our biggest obstacle was not the

  • pposition of the government or

the monopoly position of AT&T. It was the availability of capital. Those days are over now.” Bill McGowan, 1986

“This is a reward that humbles me: the fact that immigrants coming to America … can come into a Forever 21 and know that all of this was started by a simple Korean immigrant with a dream.”

Do Won Chang Founder, Forever 21

Forever 21

slide-7
SLIDE 7

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 7

“The leader is the secret sauce of any great social enterprise.”

  • Cheryl Dorsey

President, Echoing Green

0% 20% 40% 60% 80% 100% 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018* Banks CLOs Hedge,distressed and high-yield funds Loan mutual funds, financial and insurance companies

Institutional Investor Base for Non-Investment Grade Loans

Sources: S&P LCD (4/23/2018).

slide-8
SLIDE 8

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 8

Concentration of Three Largest Banks

Total assets of Top 3 banks as a percentage of home country’s GDP

0% 50% 100% 150% 200% 250%

France United States

Credit Agricole BNP Paribas Societe Generale 202% of GDP ($5.2 trillion) 34% of GDP ($6.6 trillion)

Wells Fargo Bank of America J.P. Morgan

Source: Thomson Reuters, Oxford Economics (11/21/2017). Note: Top 3 banks by country of headquarter. GDP estimate for 2017.

European Credit Is a Bank Market

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Spain Ireland Germany Italy Portugal France United Kingdom

Bonds and loans as a share of total corporate debt, Q4 2017

Bonds Loans

Source: ECB (11/21/2017); Non-consolidated loans and debt securities

slide-9
SLIDE 9

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 9

“We help companies grow by helping them to raise capital. Companies that grow create wealth. This, in turn, allows people to have jobs that create more growth and more wealth. It's a virtuous cycle … We have a social purpose.”

  • Lloyd Blankfein

Former Chairman & CEO Goldman Sachs

In 2017, there were only 3,492. In 2017, there were only 3,492. In 1996 there were 7,322 stocks listed in the Wilshire 5000.

Source: Wikipedia 12/31/2017

slide-10
SLIDE 10

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 10

Private Equity’s Footprint Private Equity’s Footprint

NYSE and NASDAQ = 6,004 companies Private equity = 7,580 portfolio companies “At least $2.4 trillion was raised privately in the United States in 2017. “$2.1 trillion was raised publicly.

10 Largest For-Profit U.S. Employers

  • 1. Walmart (1,400,000)
  • 2. Private Equity
  • 3. Private Equity
  • 4. Private Equity
  • 5. Private Equity
  • 6. Private Equity
  • 7. Private Equity
  • 8. Private Equity
  • 9. Kroger (443,000)
  • 10. UPS (434,000)
slide-11
SLIDE 11

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 11

Enterprise Value Per Employee

Source: Thomson Reuters (8/13/2018). Notes: Measure based on latest EV and latest full-time employment numbers.

Macy’s $128,000 Walmart $133,000 IBM $448,000 Sony $527,000 Amazon $1.7 million Microsoft $5.9 million Alibaba $6.9 million Apple $8.6 million Google $9.6 million Facebook $19.0 million

Increase in U.S. Corporate Cash Holdings

18 21 61 14 25 8 26 8 8 285 143 102 82 74 70 20 8 5 50 100 150 200 250 300 Apple +1445% Microsoft +577% Google +70% GE +476% Cisco +198% Oracle +735% Pfizer

  • 23%

Merck +3% Chevron

  • 40%

Q4 2007 Q1 2018

US$ billions Note: Cash and marketable securities. Source: Company Filings, Thomson Reuters (4/13/2018).

slide-12
SLIDE 12

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 12

Increase in Corporate Cash Balances 2006 to 2018

Cash holdings of publicly listed companies, percent of GDP

21% 16% 16% 4% 26% 3% 15% 15% 4% 13% 21% 1% 135% 68% 61% 51% 47% 39% 37% 33% 29% 28% 26% 19%

0% 20% 40% 60% 80% 100% 120% 140% 160% Japan France UK China Canada Korea Spain US Brazil Italy Germany Russia

Q1 2006 Q1 2018*

Percent of GDP Note: Cash and marketable securities, * latest Balance Sheet data available; GDP current forecast. Source: Thomson Reuters, Bloomberg (1/29/2018).

Global Liquidity – Sovereign Wealth Funds

(US$ Billions)

Source: SWF Institute, January 2018

1. Government Pension Fund of Norway $999 2. China Investment Corp. $900 3. Abu Dhabi Investment Authority $828 4. Kuwait Investment Authority $524 5. SAMA Foreign Holdings of Saudi Arabia $494 6. Hong Kong Monetary Authority $457 7. SAFE Investment Company of China* $441 8. Government of Singapore Investment Corp. $359 9. Qatar Investment Authority $320

  • 10. National Social Security Fund (China)

$295

slide-13
SLIDE 13

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 13

“Underlying most arguments against the free market is a lack of belief in freedom itself.”

  • Milton Friedman

Number of People Living in Poverty Number of People Living in Poverty

Less than $1.25/day

People not living in absolute poverty People living in absolute poverty

slide-14
SLIDE 14

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 14

Source: Matt Ridley, The Rational Optimist

Another Definition of Prosperity Another Definition of Prosperity

Amount of Work Required to “Earn” an Hour

  • f Reading Light

1750 BC Sesame-oil lamp 50 hours 1800 Tallow candle 6 hours 1880 Kerosene lamp 15 minutes 1950 Filament light bulb 8 seconds 2011 Compact fluorescent bulb ½ second

The Challenge – Atmospheric SO2 The Challenge – Atmospheric SO2

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

SO2 Emission (Gg)

Source: US Environmental Protection Agency.

slide-15
SLIDE 15

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 15

Reproduction or quotation of this material is expressly forbidden without the consent of the Author. 2012 Environmental Financial Products LLC

29

SO2 Reductions

Annual Mean Ambient SO2 Concentration 1989 - 1991 2004 - 2006

The Result – Atmospheric SO2 The Result – Atmospheric SO2

Source: US Environmental Protection Agency.

60 120 180 240 300 360

SO2 Concentration (PPB)

75% decrease in SO2 in 36 years

slide-16
SLIDE 16

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 16

31

SO2 Market Benefits

US Clean Air Act 1990

Acid Rain Program annual benefits (2010): $122B Costs (2010): $3B  This is a 40-to-1 benefit/cost ratio

Chicago Climate Exchange Chicago Climate Exchange

Price of Sulfur Futures per Ton

US$ per ton SO2, December 2010 delivery V2009

Source: Chicago Climate Exchange 4/21/10

slide-17
SLIDE 17

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 17

  • Equips young professionals from developing economies

with tools/experience to develop capital markets in their countries.

  • Inaugural 2016 class comprises 18 members from sub-

Saharan Africa and India.

  • Active alumni network will foster next generation of

leaders.

IFC-Milken Institute Capital Markets Program

Class of 2017-2018

slide-18
SLIDE 18

2018 Milken Institute Hamptons Dialogues Finance as a Force for Good 18

  • Promote financial markets education
  • Expand access to capital
  • Strengthen capital markets
  • Create new securities and financial markets

to solve society’s problems

What is a Meaningful Life? What is a Meaningful Life?

“The purpose of life, after all, is to live it, to taste experience to the utmost, to reach out eagerly and without fear for newer and richer experience.”

‒ Eleanor Roosevelt