Personal Finance News

Something of enormous global significance is happening almost without notice. For the first time since agriculture-based civilization began 10,000 years ago, the majority of humankind is no longer poor or vulnerable to falling into poverty. The Brookings Institution reports:

By our calculations, as of this month, just over 50 percent of the world’s population, or some 3.8 billion people, live in households with enough discretionary expenditure to be considered “middle class” or “rich.” About the same number of people are living in households that are poor or vulnerable to poverty. So September 2018 marks a global tipping point. After this, for the first time ever, the poor and vulnerable will no longer be a majority in the world. Barring some unfortunate global economic setback, this marks the start of a new era of a middle-class majority.

In most countries, there is a clear relationship between the fate of the middle class and the happiness of the population. According to the Gallup World Poll, new entrants into the middle class are noticeably happier than those stuck in poverty or in vulnerable households. Conversely, individuals in countries where the middle class is shrinking report greater degrees of personal stress. The middle class also puts pressure on governments to perform better. They look to their governments to provide affordable housing, education, and universal health care. They rely on public safety nets to help them in sickness, unemployment or old age. But they resist efforts of governments to impose taxes to pay the bills. This complicates the politics of middle-class societies, so they range from autocratic to liberal democracies. Many advanced and middle-income countries today are struggling to find a set of politics that can satisfy a broad middle-class majority. The tipping point in the world today offers opportunities for business but complications for policymakers.

Research shows sleep deprivation or excessive hours in bed increase risk of coronary artery disease or stroke. From a report:

Six to eight hours of sleep a night is most beneficial for the heart, while more or less than that could increase the risk of coronary artery disease or a stroke, researchers have suggested. The study, presented at the European Society of Cardiology Congress in Munich, indicates sleep deprivation and excessive hours in bed should be avoided for optimum heart health. The study’s author, Dr Epameinondas Fountas of the Onassis cardiac surgery centre in Athens, said: “Our findings suggest that too much or too little sleep may be bad for the heart. More research is needed to clarify exactly why, but we do know that sleep influences biological processes like glucose metabolism, blood pressure, and inflammations — all of which have an impact on cardiovascular disease.” Data from more than a million adults from 11 studies was analysed as part of the research. Compared with adults who got six to eight hours of sleep a night, “short sleepers” had an 11% greater risk, while “long sleepers” had 33% increased risk over the next nine years.

New research suggests that more money really does lead to a more satisfying life. Justin Wolfers writes on New York Times:

Surveys of thousands of Swedish lottery winners have provided persuasive evidence of this truth. Lottery winners said they were substantially more satisfied with their lives than lottery losers. And those who won prizes worth hundreds of thousands of dollars reported being more satisfied than winners of mere tens of thousands. These effects are remarkably durable. They were still evident up to two decades after a big win. The findings appear in a research report, “Long-Run Effects of Lottery Wealth on Psychological Well-Being,” that has generated a lot of buzz among economists over the summer. The working paper is by Erik Lindqvist from the Stockholm School of Economics, Robert Ostling from Stockholm University and David Cesarini from New York University.