Sites like Kickstarter and Indiegogo have long allowed individuals to support start-ups in exchange for pre-buying a ticket or early prototype of a product, but not for equity. Accredited investors—with a net worth of over $1 million or who earn over $200,000 a year—have their own platforms and can invest in companies through sites like AngelList.
However, new rules enacted last May allow average people to invest in start-ups through crowdfunding sites that reward investors with equity. The rules usher in a new era of crowdfunding that is accessible to individuals of all economic backgrounds.
As part of the federal JOBS Act,Title III rules allow everyday investors the opportunity to share in the returns of the “next big idea.” This week, (Monday, July 18) for example, a new equity crowdfunding site, Republic, launched with a curated set of projects and companies that include women-founded startups such as Farm from a Box and minority-owned companies like Youngry.
Donald Trump has finally put out a detailed economic plan. Authored by Peter Navarro (an economist at the University of California-Irvine) and Wilbur Ross (an investor), the plan claims that a President Trump would boost growth and reduce the national debt. But its projections are based on assumptions so unrealistic that they seem to have come from a different planet. If the United States really did adopt Trump’s plan, the result would be an immediate and unmitigated disaster.
At the heart of the plan is a very large tax cut. The authors claim this would boost economic growth, despite the fact that similar cuts in the past (for example, under President George W. Bush) had no such effect. There is a lot of sensible evidence available on precisely this point, all of which is completely ignored.
The Trump plan concedes that the tax cut per se would reduce revenue by at least $2.6 trillion over ten years – and its authors are willing to cite the non-partisan Tax Foundation on this point. But the Trump team claims this would be offset by a growth miracle spurred by deregulation.
Last month, the Federal Reserve announced that 31 out of 33 U.S. banks had passed its latest “stress test,” designed to ensure that the largest financial institutions have enough capital to withstand a severe economic shock.
Passing the test amounts to being given a clean bill of health by the Fed. So are taxpayers – who were on the hook for the initial US$700 billion TARP bill to bail out the banks in 2008 – now safe?
A major shift in American politics has taken place. All three of the remaining mainstream Democratic presidential candidates now agree that the existing state of the financial sector is not satisfactory and that more change is needed. President Barack Obama has long regarded the 2010 Dodd-Frank financial-reform legislation as bringing about sufficient change. Former Secretary of State Hillary Clinton, Senator Bernie Sanders, and former Governor Martin O’Malley want to do even more.
The three leading Democratic candidates disagree, however, on whether there should be legislation to re-erect a wall between the rather dull business of ordinary commercial banking and other kinds of finance (such as issuing and trading securities, commonly known as investment banking).
What is the economic cost of nuclear power? That turns out to be a very difficult question to answer.
The United States and other countries have plentiful experience building and operating nuclear power plants. Currently 438 nuclear reactors with a combined capacity of 379,000 megawatts generate more than 10% of the total electricity used worldwide.
The US has the largest fleet, with 99 reactors generating almost 20% of US electricity. France has the second-largest, with 58 reactors producing 77% of its electricity. The Chinese fleet of 27 reactors generates under 3% of its electricity.
Nevertheless, there is great uncertainty about the cost of building new plants. The existing fleet in the US and most developed countries is very old, dating back to a period of intense growth in the 1960s and 1970s. In the US, the most recent construction permit for an operating reactor was issued in 1978, although completion work on a couple of stalled projects and “uprates” – capital refurbishment that increases capacity – have occurred at a number of units.
New construction fell off in other developed countries, too. The few additions made since 1990 were mostly in Japan, Korea, Eastern Europe, Russia and China.