Countries that have been previously referred to as emerging are gaining respect with a new moniker: The New World. In May, the Boston Consulting Group published its 13th annual report on global wealth, in which it revealed that the “New World” will experience the most significant growth in wealth, increasing 11.4% by 2017 and overtaking North America as the largest wealth region.
“New World” countries include Asia-Pacific (excluding Japan), Eastern Europe, Latin America, the Middle East and Africa. Among them, China is projected to surpass Japan to become the second wealthiest nation.
Meanwhile, the Georgetown Center of Education and the Workforce recently released survey findings that students graduating with information systems majors have a higher unemployment rate (14.7%) than students with a major in the arts (9.8%).
Back here in the Old World, the 2013 Medicare and Social Security Trustees’ Report made the positive observation that the recent slow-down in health care costs has improved Medicare’s financial outlook. This year’s report projects the program’s trust fund will now last until 2026 – two years later than last year’s forecast.
However, a new study attributes at least some of those gains to recent immigrants from the New World. As it turns out, foreign-born workers living in the United States contribute millions in payroll taxes to the Medicare program. In fact, between 2002 and 2009, immigrants contributed $115 billion more to Medicare than they drew out – substantially bolstering the program’s coffers.
This phenomenon is attributed to the fact that these New World working immigrants are generally younger than the average Old World user (a.k.a., seniors). On average, New Worlders have a high labor-force participation rate – meaning they come here for jobs.
[ to read the “2013 Annual Report of the Boards of Trustees of the Federal Hospital Insurance and Federal Supplementary Medical Insurance Trust Funds,” at the Centers for Medicare and Medicaid Services, May 31, 2013.]
This collaboration between old and new reminds us of wedding attendees – the oddball mix of young adults, weary parents, elderly grandparents, teens sneaking champagne, and hyperactive ring bearers and flower girls tripping over their fancy new clothes. Or perhaps the first Thanksgiving celebrations during colonial times, when world traveling immigrants traded recipes with home-grown natives. This mix of perspectives and experiences have traditionally served our nation well. Let’s hope it continues to benefit us in the future.
If you would like to discuss ways to address or take advantage of Old and New World challenges and opportunities in your financial matters, we’d love to explore those avenues with you.
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