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Thriving Norway Provides an Economics Lesson
2009-05-14, New York Times
http://www.nytimes.com/2009/05/14/business/global/14frugal.html

When capitalism seemed on the verge of collapse last fall, Kristin Halvorsen, Norway’s Socialist finance minister and a longtime free market skeptic, did more than crow. As investors the world over sold in a panic, she bucked the tide, authorizing Norway’s $300 billion sovereign wealth fund to ramp up its stock buying program by $60 billion — or about 23 percent of Norway's economic output. "The timing was not that bad," Ms. Halvorsen said, smiling with satisfaction over the broad worldwide market rally that began in early March. The global financial crisis has brought low the economies of just about every country on earth. But not Norway. With a quirky contrariness as deeply etched in the national character as the fjords carved into its rugged landscape, Norway has thrived by going its own way. When others splurged, it saved. When others sought to limit the role of government, Norway strengthened its cradle-to-grave welfare state. And in the midst of the worst global downturn since the Depression, Norway’s economy grew last year by just under 3 percent. The government enjoys a budget surplus of 11 percent. Norway is a relatively small country with a ... population of 4.6 million and the advantages of being a major oil exporter. Even though prices have sharply declined, the government is not particularly worried. That is because Norway avoided the usual trap that plagues many energy-rich countries. Instead of spending its riches lavishly, it passed legislation ensuring that oil revenue went straight into its sovereign wealth fund, state money that is used to make investments around the world. Now its sovereign wealth fund is close to being the largest in the world.

Note: For lots more on the global economic and financial crisis from reliable sources, click here.

UAW busting, Southern style
2008-12-18, Los Angeles Times
http://www.latimes.com/news/opinion/commentary/la-oe-raynor18-2008dec18,0,406...

The foreign nonunion auto companies located in the South have a plan to reduce wages and benefits at their factories in the United States. And to do it, they need to destroy the United Auto Workers. Last week, Senate Republicans from some Southern states went to work trying to do just that, on the foreign car companies' behalf. [Republican] representatives from states that subsidize companies such as Honda, Volkswagen, Toyota and Nissan first tried to force the UAW to take reductions in wages and benefits as a condition for supporting the auto industry bailout bill. When the UAW refused, those senators torpedoed the bill. They claimed that they couldn't support the bill without specifics about how wages would be "restructured." They didn't, however, require such specificity when it came to bailing out the financial sector. Their grandstanding, and the government's generally lackluster response to the auto crisis, highlight many of the problems that have caused our current economic mess: the lack of concern about manufacturing, the privileged way our government treats the financial sector, and political support given to companies that attempt to slash worker's wages. When one compares how the auto industry and the financial sector are being treated by Congress, the double standard is staggering. At Goldman Sachs ... employee compensation made up 71% of total operating expenses in 2007. In the auto industry, by contrast, autoworker compensation makes up less than 10% of the cost of manufacturing a car. Hundreds of billions were given to the financial-services industry with barely a question about compensation; the auto bailout, however, was sunk on this issue alone.

Note: For highly revealing reports from reliable sources on the realities of the Wall Street bailout, click here.

Richest Americans See Their Income Share Grow
2008-07-23, Wall Street Journal
http://online.wsj.com/article/SB121677287690575589.html

In a new sign of increasing inequality in the U.S., the richest 1 percent of Americans in 2006 garnered the highest share of the nation's adjusted gross income for two decades, and possibly the highest since 1929, according to Internal Revenue Service data. Meanwhile, the average tax rate of the wealthiest 1 percent fell to its lowest level in at least 18 years. The figures are from the IRS's income-statistics division and were posted on the agency's Web site last week. The 2006 data are the most recent available. According to the figures, the richest 1 percent reported 22 percent of the nation's total adjusted gross income in 2006. That is up from 21.2 percent a year earlier, and is the highest in the 19 years that the IRS has kept strictly comparable figures. The 1988 level was 15.2 percent. Earlier IRS data show the last year the share of income belonging to the top 1 percent was at such a high level as it was in 2006 was in 1929, but changes in measuring income make a precise comparison difficult. The average tax rate in 2006 for the top 1 percent, based on adjusted gross income, was 22.8 percent, ... the fifth straight year of declines. The average tax rate of this group was 28.9 percent in 1996.

Note: For more on accelerating income inequality from reliable sources, click here.

Report: In U.S., record numbers are plunged into poverty
2007-02-23, USA Today/AFP
http://www.usatoday.com/news/nation/2007-02-25-us-poverty_x.htm

The gulf between rich and poor in the United States is yawning wider than ever, and the number of extremely impoverished is at a three-decade high. Based on the latest available U.S. census data from 2005, [a] McClatchy Newspapers analysis found that almost 16 million Americans live in "deep or severe poverty" defined as a family of four with two children earning less than 9,903 dollars — one half the federal poverty line figure. For individuals the "deep poverty" threshold was an income under 5,080 dollars a year. The number of severely poor Americans grew by 26% from 2000 to 2005. The surge in poverty comes alongside an unusual economic expansion. "Worker productivity has increased dramatically since the brief recession of 2001, but wages and job growth have lagged behind. At the same time, the share of national income going to corporate profits has dwarfed the amount going to wages and salaries. That helps explain why the median household income for working-age families, adjusted for inflation, has fallen for five straight years. These and other factors have helped push 43% of the nation's 37 million poor people into deep poverty — the highest rate since at least 1975," the report said. Since 2000, the number of severely poor — far below basic poverty terms — in the United States has grown "more than any other segment of the population. That was the exact opposite of what we anticipated when we began," said Steven Woolf of Virginia Commonwealth University, a study co-author. U.S. social programs are minimal compared to those of western Europe and Canada.

Breaking Cycle of Poverty with Microloans Yields Nobel Peace Prize
2005-10-23, New York Times/Wall Street Journal/BusinessWeek/The Economist
http://www.WantToKnow.info/051023microcredit

Several major media articles have sung the praises of microcredit, also known as microfinance and microlending: New York Times: Tiny Loans Make a Big Difference in Lives of Poor; Wall Street Journal: A new way to do well by doing good; BusinessWeek: Microfinance funds lift poor entrepreneurs—and benefit investors; The Economist: Microcredit in India, High finance benefits the poor; Excellent general article in Time magazine titled "The End of Poverty" CNN/Associated Press: Bankers for poor win peace Nobel. Without donating a penny, you can help to break the cycle poverty in a very real way. Microcredit investments are not donations or charity. Like other investments, the money is always yours. You even earn a small amount of interest. Yet for every $1,000 you invest, several entire families in the developing world can be pulled out of poverty every year. That is part of the reason why the United Nations declared 2005 to be the International Year of Microcredit and why the individual and group who originated the microcredit concept were awarded the Nobel Peace Prize in 2006. To download a free 24-page guide to microcredit and community investing, click here.  And note that these investments are not influenced at all by market fluctuations.

Note: For more detailed information on this incredibly inspiring means of decimating poverty, click here.

Bush lifts wage rules for Katrina
2005-09-09, CNN/Reuters
http://money.cnn.com/2005/09/08/news/economy/katrina_wages.reut

President Bush issued an executive order Thursday allowing federal contractors rebuilding in the aftermath of Hurricane Katrina to pay below the prevailing wage. In a notice to Congress, Bush said the hurricane had caused "a national emergency" that permits him to take such action. Bush's action came as the federal government moved to provide billions of dollars in aid. The administration is using the devastation of Hurricane Katrina to cut the wages of people desperately trying to rebuild their lives and their communities.

Gulf Between Top, Bottom Gets Wider
2005-05-31, Los Angeles Times
http://www.latimes.com/business/careers/work/la-fi-execpay31may31,1,7406992.s...

A Times survey of the state's largest companies shows that CEOs' pay is growing at a much faster pace than that of rank-and-file employees. The difference is even sharper at the top rungs of the ladder. The 10 highest-paid executives on this year's list earned 36.7% more than last year's top 10 — garnering a collective $467.5 million. That's enough to buy about 275 homes in Malibu or 1.5 million sets of golf clubs or two 747 jumbo jets. Although limited to California companies, the survey reflects a national trend: a widening chasm between the pay of chief executives and rank-and-file employees. CEOs at California's largest 100 public companies took home a collective $1.1 billion in 2004, up almost 20% from 2003. That compares with the 2.9% raise that the average California worker saw last year. The average CEO made 42 times the average worker's pay in 1980. That increased to 85 times in 1990 and is now over 300 times. Sometimes, executive pay soars even in bad years. Sanmina-SCI Corp., a San Jose telecommunications company with $12 billion in sales, lost money in 2003 and 2004. Yet Chief Executive Jure Sola scored a 1,500% hike in total pay during 2004, according to The Times survey. Sola was paid $19.8 million last year, while the company lost $14.9 million.

Tax rich more, Patriotic Millionaires urge
2011-10-03, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/10/03/MN0R1LB1EG.DTL

Los Altos resident Doug Edwards asked President Obama something that many Americans would consider unthinkable: "Would you please raise my taxes?" Edwards, 53, can afford it. Retired after being amply compensated for being employee No. 59 at Google, he's part of a Bay Area-birthed organization called Patriotic Millionaires for Fiscal Strength. The Patriotic Millionaires contend that Americans with incomes over $1 million should shoulder a larger share of the tax burden to pay for Pell Grants, road improvements and training programs "that made it possible for me to get to where I am," as Edwards told Obama during the president's appearance last week at the Mountain View social networking company LinkedIn. Polls say most respondents agree that rich folks should pony up, as the effective tax rates for the wealthiest Americans - what people actually pay after deductions and exemptions - are at their lowest levels since 1960. And the income gap between the wealthiest and poorest Americans is at its widest mark since the Great Depression. Last year, Obama did not live up to his campaign promise to rescind the Bush-era tax cuts on upper-income Americans.

Note: Did you know that the marginal income tax rate on the very rich in the U.S. is the lowest it has been in more than 80 years? Under President Dwight Eisenhower ... it was 91 percent. Now it's 36 percent. For more on this, click here.

The human cost of a global crisis
2011-09-27, The Guardian (One of the UK's leading newspapers)
http://www.guardian.co.uk/world/2011/sep/27/warning-human-cost-global-crisis

The full humanitarian impact of the world economic crisis became clearer this week, as UN and global agencies warned of huge job losses, a rise in the number of people afflicted by chronic undernourishment, and the "extraordinary price" being paid by children and other vulnerable groups as mass austerity programmes constrict the developing world. In a report prepared with the Organisation for Economic Co-operation and Development (OECD) ... the International Labour Organisation said the group of developing and developed nations had seen 20m jobs disappear since the 2008 financial crisis. At current rates it would be impossible to recover them in the near term and there was a risk of the number doubling by the end of next year, it said. The World Disasters Report, published by the International Federation of Red Cross and Red Crescent Societies, concluded that the number of people worldwide who are undernourished must be at least 1 billion. Of these, around 60% are women. A total of 178 million children under five have stunted growth as a result of lack of food. Meanwhile, a study by the UN children's fund, Unicef, said there would be "irreversible impacts" from wage cuts, tax increases, benefit reductions and cuts in subsidies that bore most heavily on the most vulnerable in low-income nations. Unicef said: "In the wake of the food, fuel and financial shocks, a fourth wave of the global economic crisis began to sweep across developing countries in 2010: fiscal austerity."

Note: If nations around the world donated just a few percent of their military budgets to food and nutrition programs for the poor, malnutrition and starvation worldwide could be dramatically reduced, if not eliminated. For lots more from reliable sources on income inequality, click here.

UN: Number of hungry people declines
2010-09-14, Washington Post/Associated Press
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/14/AR20100914014...

The number of chronically hungry people in the world dipped considerably below the 1 billion mark - the first drop in 15 years - thanks partly to a fall in food prices after spikes that sparked rioting a few years ago, U.N. agencies said [on September 14]. Still, an estimated 925 million people are undernourished worldwide, and the latest figures don't reflect the repercussions from the massive flooding in Pakistan. The Rome-based Food and Agriculture Organization's report suggested some progress in the battle to end hunger, but stressed the world is far from achieving the U.N. promoted Millennium Development Goal of halving the proportion of undernourished people from 20 percent in 1990-92 to 10 percent in 2015. The report estimated there are 98 million fewer chronically hungry people than in 2009, when the figure just topped 1 billion. The drop in the chronically hungry is partly because ... cereal and rice harvests have been strong. Cereal production this year was the third-highest ever recorded, despite a drought-fueled wheat shortfall in Russia, said FAO director-general Jacques Diouf. Also heartening, Diouf noted, is that cereal stocks are high - some 100 million tons more than the low levels of 2007-2008, when some 38 countries shut down their food export markets in reaction.

The Rise and Fall of the G.D.P.
2010-05-16, New York Times
http://www.nytimes.com/2010/05/16/magazine/16GDP-t.html

G.D.P. is an index of a country’s entire economic output — a tally of, among many other things, manufacturers’ shipments, farmers’ harvests, retail sales and construction spending. It’s a figure that compresses the immensity of a national economy into a single data point of surpassing density. The conventional feeling about G.D.P. is that the more it grows, the better a country and its citizens are doing. [But] it has been a difficult few years for G.D.P. For decades, academics and gadflies have been critical of the measure, suggesting that it is an inaccurate and misleading gauge of prosperity. What has changed more recently is that G.D.P. has been actively challenged by a variety of world leaders, especially in Europe, as well as by a number of international groups, like the Organization for Economic Cooperation and Development. The G.D.P. ... has not only failed to capture the well-being of a 21st-century society but has also skewed global political objectives toward the single-minded pursuit of economic growth. Which indicators are the most suitable replacements for, or most suitable enhancements to, G.D.P. Should they measure educational attainment or employment? Should they account for carbon emissions or happiness?

Note: Which is more important, the economic prosperity of a people, or the well being and level of happiness?

Poor Children Likelier to Get Antipsychotics
2009-12-12, New York Times
http://www.nytimes.com/2009/12/12/health/12medicaid.html

New federally financed drug research reveals a stark disparity: children covered by Medicaid are given powerful antipsychotic medicines at a rate four times higher than children whose parents have private insurance. And the Medicaid children are more likely to receive the drugs for less severe conditions than their middle-class counterparts, the data shows. Those findings, by a team from Rutgers and Columbia, are almost certain to add fuel to a long-running debate. Do too many children from poor families receive powerful psychiatric drugs not because they actually need them – but because it is deemed the most efficient and cost-effective way to control problems that may be handled much differently for middle-class children? The questions go beyond the psychological impact on Medicaid children, serious as that may be. Antipsychotic drugs can also have severe physical side effects, causing drastic weight gain and metabolic changes resulting in lifelong physical problems. Part of the reason is insurance reimbursements, as Medicaid often pays much less for counseling and therapy than private insurers do. Studies have found that children in low-income families may have a higher rate of mental health problems – perhaps two to one – compared with children in better-off families. But that still does not explain the four-to-one disparity in prescribing antipsychotics.

Note: For many important health reports from reliable sources, click here.

Incomes of young in 8-year nose dive
2009-09-17, USA Today
http://www.usatoday.com/news/nation/census/2009-09-17-young-people_N.htm

The incomes of the young and middle-aged — especially men — have fallen off a cliff since 2000, leaving many age groups poorer than they were even in the 1970s, a USA TODAY analysis of new Census data found. People 54 or younger are losing ground financially at an unprecedented rate in this recession, widening a gap between young and old that had been expanding for years. The dividing line between those getting richer or poorer: the year 1955. If you were born before that, you're part of a generation enjoying a four-decade run of historic income growth. Every generation after that is now sinking economically. Household income for people in their peak earning years — between ages 45 and 54 — plunged $7,700 to $64,349 from 2000 through 2008, after adjusting for inflation. People in their 20s and 30s suffered similar drops. Older people enjoyed all the gains. The line between the haves and have-nots runs through the middle of the Baby Boom, the population explosion 1946-64. "The second half of the Baby Boom may be in the worst shape of all," says demographer Cheryl Russell of New Strategist Publications, a research firm. "They're loaded with expenses for housing, cars and kids, but they will never generate the income that their parents enjoyed."

Note: For lots more on income inequality from reliable sources, click here.

When sluggishness isn't OK
2005-09-04, Chicago Tribune
http://www.chicagotribune.com/news/columnists/chi-0509040406sep04,1,3926343.c...

E-mailers sent me copies of two news photos that revealed an apparent double standard regarding black and white flood victims in New Orleans. One of the images, shot by photographer Dave Martin for The Associated Press, shows a young black man wading through chest-deep waters after "looting" a grocery store, according to the caption. In the other, taken by photographer Chris Graythen for AFP/Getty Images, a white man and a similarly light-skinned woman also waded through chest-deep water after "finding" goods that included bread and soda in a local grocery store, according to the caption. Apparently, quipped a cynical blogger at Daily Kos, "It's not looting if you're white."

Note: For both photos and more on this disturbing story, click here.

Gap between rich, poor grows in wealthy nations
2008-10-22, San Francisco Chronicle (San Francisco's leading newspaper)
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/10/22/MNS213LJU5.DTL

Economic inequality is growing in the world's richest countries, particularly in the United States. The gap between rich and poor has widened over the last 20 years in nearly all the countries studied, even as trade and technological advances have spurred rapid growth in their economies. With job losses and home foreclosures skyrocketing and many of these countries now facing recession, policymakers must act quickly ... the Organization for Economic Cooperation and Development said. "What will happen if the next decade is not one of world growth but of world recession? If a rising tide didn't lift all boats, how will they be affected by an ebbing tide?" Oxford University economist Anthony Atkinson said at a conference at the organization's Paris headquarters. In a 20-year study of its member countries, the group found inequality had increased in 27 of its 30 members as top earners' incomes soared while others' stagnated. The United States has the highest inequality and poverty rates in the organization after Mexico and Turkey, and the gap has increased rapidly since 2000, the report said. France, meanwhile, has seen inequalities fall in the past 20 years as poorer workers are better paid. Rising inequality threatens social mobility ... which is lower in countries like the United States, Great Britain and Italy, where inequality is high, than countries with less inequality such as Denmark, Sweden and Australia, the report said. Wealthy households are not only widening the gap with the poor, but in countries such as the United States, Canada and Germany, they are also leaving middle-income earners further behind.

Note: For more reports from reliable sources on increasing income inequality, click here.

Gap in Life Expectancy Widens for the Nation
2008-03-23, New York Times
http://www.nytimes.com/2008/03/23/us/23health.html?ex=1363924800&en=ba91823f2...

New government research has found “large and growing” disparities in life expectancy for richer and poorer Americans, paralleling the growth of income inequality in the last two decades. Life expectancy for the nation as a whole has increased, the researchers said, but affluent people have experienced greater gains, and this, in turn, has caused a widening gap. One of the researchers, Gopal K. Singh, a demographer at the Department of Health and Human Services, said “the growing inequalities in life expectancy” mirrored trends in infant mortality and in death from heart disease and certain cancers [and] that federal officials had found “widening socioeconomic inequalities in life expectancy” at birth and at every age level. He and another researcher, Mohammad Siahpush, a professor at the University of Nebraska Medical Center in Omaha, developed an index to measure social and economic conditions in every county, using census data on education, income, poverty, housing and other factors. In 1980-82, Dr. Singh said, people in the most affluent group could expect to live 2.8 years longer than people in the most deprived group (75.8 versus 73 years). By 1998-2000, the difference in life expectancy had increased to 4.5 years (79.2 versus 74.7 years), and it continues to grow, he said. After 20 years, the lowest socioeconomic group lagged further behind the most affluent, Dr. Singh said, noting that “life expectancy was higher for the most affluent in 1980 than for the most deprived group in 2000. If you look at the extremes in 2000,” Dr. Singh said, “men in the most deprived counties had 10 years’ shorter life expectancy than women in the most affluent counties (71.5 years versus 81.3 years).” The difference between poor black men and affluent white women was more than 14 years (66.9 years vs. 81.1 years).

Note: For a powerful summary of corruption in the government regulation of the health care industry, click here.

Income-Inequality Gap Widens
2007-10-12, Wall Street Journal
http://online.wsj.com/article_email/SB119215822413557069-lMyQjAxMDE3OTEyMjExN...

The richest Americans' share of national income has hit a postwar record, surpassing the highs reached in the 1990s bull market, and underlining the divergence of economic fortunes blamed for fueling anxiety among American workers. The wealthiest 1% of Americans earned 21.2% of all income in 2005, according to new data from the Internal Revenue Service. That is up sharply from 19% in 2004, and surpasses the previous high of 20.8% set in 2000, at the peak of the previous bull market in stocks. The bottom 50% earned 12.8% of all income, down from 13.4% in 2004 and a bit less than their 13% share in 2000. The IRS data go back only to 1986, but academic research suggests the rich last had this high a share of total income in the 1920s. Until this summer, soaring stock prices and buoyant credit markets had produced spectacular payouts for private-equity and hedge-fund managers, and investment bankers. One study by University of Chicago academics Steven Kaplan and Joshua Rauh concludes that in 2004 there were more than twice as many such Wall Street professionals in the top 0.5% of all earners as there are executives from nonfinancial companies. Mr. Rauh said "it's hard to escape the notion" that the rising share of income going to the very richest is, in part, "a Wall Street, financial industry-based story." The study shows that the highest-earning hedge-fund manager earned double in 2005 what the top earner made in 2003, and top 25 hedge-fund managers earned more in 2004 than the chief executives of all the companies in the Standard & Poor's 500-stock index, combined. The IRS data show that the median tax filer's income -- half earn less than the median, half earn more -- fell 2% between 2000 and 2005 when adjusted for inflation, to $30,881. At the same time, the income level for the tax filer just inside the top 1% grew 3%, to $364,657.

Note: For many verifiable reports on worsening income inequality, click here.

More Than $1B Needed to Make Forbes List
2007-09-21, Associated Press
http://ap.google.com/article/ALeqM5gngILC6mqaGCBRjrNiHd5aS5-QbQ

A billion dollars just doesn't go as far as it used to. For the first time, it takes more than $1 billion to earn a spot on Forbes magazine's list of the 400 richest Americans. The minimum net worth for inclusion in this year's rankings released Thursday was $1.3 billion, up $300 million from last year. The new threshold meant 82 of America's billionaires didn't make the cut. Collectively, the people who made the rankings released Thursday are worth $1.54 trillion, compared with $1.25 trillion last year. The very top of the list was unchanged: Microsoft Corp. founder Bill Gates led the list for the 14th straight year, this time with a net worth estimated at $59 billion. He was followed by Warren Buffett of Berkshire Hathaway Inc. in second place with an estimated $52 billion. The list showed some notable changes. Joining the top 10 of the country's richest for the first time were Google Inc. founders Sergey Brin and Larry Page, who tied for fifth place. The 34-year-old moguls' wealth has quadrupled since 2004 to an estimated $18.5 billion this year, while their company's stock value has surged 500 percent. Lower down, almost half of the 45 newcomers made their millions in hedge funds and private equity investments. "Wall Street really led the charge this year," said Matthew Miller, editor of the Forbes list.

Note: For more revealing articles on income inequality and the growing gap between the super-rich and the rest, click here.

Graduates versus Oligarchs
2006-02-27, New York Times
http://select.nytimes.com/2006/02/27/opinion/27krugman.html

Highly educated workers have done better than those with less education, but a college degree has hardly been a ticket to big income gains. The 2006 Economic Report of the President tells us that the real earnings of college graduates actually fell more than 5 percent between 2000 and 2004. So who are the winners from rising inequality? It's not the top 20 percent, or even the top 10 percent. The big gains have gone to a much smaller, much richer group than that. A new research paper by Ian Dew-Becker and Robert Gordon of Northwestern University, "Where Did the Productivity Growth Go?," gives the details. Between 1972 and 2001 the wage and salary income of Americans at the 90th percentile of the income distribution rose only 34 percent, or about 1 percent per year. So being in the top 10 percent of the income distribution, like being a college graduate, wasn't a ticket to big income gains. But income at the 99th percentile rose 87 percent; income at the 99.9th percentile rose 181 percent; and income at the 99.99th percentile rose 497 percent. Should we be worried about the increasingly oligarchic nature of American society? Yes, and not just because a rising economic tide has failed to lift most boats. Both history and modern experience tell us that highly unequal societies also tend to be highly corrupt.

Note: If the above link fails, click here.

A new way to do well by doing good
2006-01-05, Wall Street Journal/Pittsburgh Post-Gazette
http://www.post-gazette.com/pg/06005/633114.stm

Making tiny loans to poor entrepreneurs in developing countries has long been a popular charitable cause, but it is now gaining traction as an investment. Microfinance, as these loans are known, is aimed at lifting some of the world's most destitute people out of poverty by providing seed money for small businesses. Funding for the loans traditionally has come from charities and government-aid organizations. Now, an increasing number of private funds are steering capital to microfinance. Many of the new investment instruments have been launched by nonprofit organizations long involved in the industry, including Grameen Foundation USA, the Foundation for International Community Assistance, both in Washington. Microfinance investing got a boost this fall when eBay Inc. founder Pierre Omidyar and his wife, Pamela, gave $100 million to Tufts University to create a fund that invests in microfinance vehicles. Microfinance investment funds...lend money for small-scale businesses, such as vending fruit, weaving shawls or operating small farms in poor countries around the world. Calvert Foundation offers Community Investment Notes, which require a minimum $1,000 investment, and can be earmarked to invest in developing countries or other initiatives, including post-Katrina recovery on the Gulf Coast.

Note: Microfinance is one of the most empowering movements in the world. When we let go of our fears around finances and put our money where our heart is, we invite major transformation into both our personal lives and our world. For how to get involved, see http://www.WantToKnow.info/051023microcredit

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