Latin America GDP Analysis

Earlier blog discussions centered around economics and social designations relative to the united society creating the United States. Comparisons were made to primarily European countries and I wanted to complete the perspective by including Latin America. The data also provides a clear view of the immigration topic relative to our neighbors in the Americas south of US.

Slides: Latin America GDP Comparison [revised]

Related Topic Website:

Council on Foreign Relations - Latin America

Related Blog Posts:

Social Spending and GDP

Assets and Values

Explanation and Critique of Quadrant Labels

Historical Connections? Part 2

The United States society and economy really began to distinguish itself during and after WWII. The war required change in social policy allowing the inclusion of all members of society to contribute to the build of necessary industry support. This inclusive policy also allowed Latin American immigrants to join the effort in the United States contributing to increased earnings distribution and wealth across American communities. The expansion of industry and labor (skill development) aided the economy during increased worldwide industrial demand from capacity impacted regions after the war. The quarter century or more after WWII redefined the American society from the church to the military defense build-up strategies for US interests to include all citizens and share economic prosperity.

WWII also provided the early need for integration initiatives ultimately leading to Civil Rights legislation of the 1960’s. Although serving in segregated units, the soldiers proved to be exceptional contributors to the US efforts despite fears of enemy cooptation. These fears were promoted within the conservative circles of the military contributing to the limited usage of the diverse manpower and reflected the prevailing psychology of Conservative protection ideology. Protection through the need for precise and insulated organizational structures; the new Homeland security developments; current forced adoption of order through war actions (Middle East); and an overestimated need to conserve capital resources. Many of the human projections were derived from stereotypical assessments as evidenced in the correlation among the social structure; community economic impacts; and morality definitions to preserve human ethnic identifications (DNA vulnerabilities).

Although I am briefly introducing the topic of stereotypes and impacts here, I plan a future blog post to clarify the personal assessment analysis connecting fraternal organizations and social relationships. My perspective is obviously that of a "Black" American male (w/ Native ancestry) growing as a youth in the American South during the integration policy introduction. I am relating personal observations & experiences, reading of history, and stories heard to eventual social outcomes. During that period of the 1^st generation integration, much time and energy was spent trying to prove against a critique of inability to perform [any task outside of manual labor - assumptive human capital value] ignoring the variability in relative levels and quality of education and experience of the time. The social integration resistance was supplemental to the efforts to prevent further sexual, racial interrelations by limiting the desirable mate trait appeals of intelligence and economic success. Current day impacts are the conservative emphasis of “family values” and the fallible individual morality related to sexual activity, particularly interracial. The Latino stereotype consistent with this labor social impact is the association with non-citizenship and “illegal status.” Counter to the promotion of prosperity is the moral fallibility design that is comparable to the Black church traditions/expectations to provide support and spiritual comfort for those actions deemed “short of God” by "decision makers" [with no mention of involvement, corporate influence, or Florida connections]. Moreover, the design reflects the American cultural differences with large, continental African family traditions. Given this history and traditional role, exploitation of stereotypes is consistent with activities indentified in the J. Edgar Hoover autobiography, The Man and The Secrets (ISBN-13: 9780393321289), of “political pressure” based upon documented sex lives (many stories that are not true) in files using tactics described in the 1976 Church Committee findings with relevance to current day internet technology.

Looking back at the 2006 Marriage data tables in my Gatekeepers and Modes of Incorporation and Integrative Social and Economic Systems blog posts provide at least one reason for the separatists' position (unless they are willing to admit some other human difference). Males outnumber females in the White and Latino/Hispanic racial groups by a combined 2.745 million according to census data. Black women outnumber Black males by 1.2 million encouraging further belief of the stereotypes. It appears the gender with the numerical advantage of greater mate choices tend to receive the more negative behavioral stereotype. The imbalance provides less incentive to stay committed upon discovery of deeper personality differences among mates not including social progress of equality and can impact leadership judgments in certain environments. The additional competition from others only compounds the imbalance in smaller communities. Moreover, the lack of available male mates support the dependence of non-married Black women on spiritual reliance of the church and emotional connections to its Male leadership (I give this perspective from perceptions outside the formal organization and have no intentions of changing positions or activity relative to this explanation). As with stereotypes and impacts, concept expansion of the church definition (and “God hierarchy”) will come in a future blog post. I am not sure how many others support my positions, but I do believe there are many others for varying reasons. However, my position is based upon constitutional rights, desired relationships of mutual agreement, partnership and definitely not for any fraternal (“family”) manipulative, sexually exploitative use of women.

The 1^st generation of adults to integrate U.S. society after legal changes for inclusion now views the next generation partially through the lenses of personal experiences of required compromises for career advancement and assimilation. During my youth, most of the adults within my sphere of influence developed careers within government institutions such as local and state police associations; fraternal acceptance; and military groups (Army, Air Force) where strict adherence to defined rules is the standard. Such societal strict adherence allows perpetuation of Hoover type activities. This next generation has grown up incorporating the policy of inclusion and freedoms without compromise of rights. These progressive, inclusive conditions and rights are expected within all social and corporate environments. Children are not required to accept ritual commitments of their parents particularly without full and complete explanation & understanding of the implication on expected rights and freedoms upon adulthood.

Integrative Social and Economic Systems

Societal behavioral norms have been shaped over time through the civilization cycles. Early civilizations were not very sexually inhibitive as evidenced in the ancient artifacts currently displayed in museums around the world. In these early Egyptian, Greek, and Roman cultures women were expected to be dedicated to their husbands. While male sexual promiscuity was acceptable behavior resulting from dominance based upon physical strength and fighting abilities.

The evolution of democratic societies as currently reflected in the U.S. has given women equal rights as men. Advanced technologies and machinery have replaced the required “brute” physical strength to accomplish tasks and placed a premium on mental and intellectual abilities. Equal recognition of ability and responsibility has progressed and eventually equal opportunity and compensation will follow. Marriage is no less important to American values than any other culture. However, the arrangement is becoming as much an economic decision as one of moral expectation. The marriage commitment comes with an expectation consistent with the politically expressed American Dream of a house with backyard and kids. The conservative social structure I briefly identify in blog posts Judgments and Character and Gatekeepers and Modes of Incorporation attempt to maintain historical segments within the society. Just for the sake of declaration, I do not belong nor do I intend to become part of the socially promoted segmented fraternal structure (particularly, any supported by Southern influenced frat collaborations with other “family” values separatists). If the objective is to create and maintain stability in society through committed marital unions, then placing restrictive boundaries and conditional exclusions are not warranted. The segmented social philosophy is a remnant of the early civil rights’ struggles and creates current day relationship obstacles.

Slides:  Married Couples in United States 2006, Updated                          2008 Per Capita Mean Income Analysis (Race and Gender)

Comparatively, the U.S. economic system is a more dynamic, evolved, and inclusive environment with substantial measurements of integrated success. Capitalist markets operate on the assumption of capital allocated to its best and most productive usage with limited restrictions. The system allows capital to flow freely around the world through all cultures and communities to find the best match of opportunities and goals successfully uniting supply with demand. So, in a segmented social group where one gender outnumbers another (more supply over demand), what should happen with the excess “supply”? Could these imposed barriers be the cause of unwanted behaviors? When women outnumber men within a segment more time is spent “rent seeking” a partner and as competition increases within the segment, male promiscuity most likely increases.

The philosophical capitalist (free market) social model allows more freedom to cross boundaries for better balancing of match opportunities for stronger, intimate commitments. Adding to the issue of segmentation are the subjective individual moral behavior judgments affecting opportunities. The impacts are somewhat reflected in national employment rates and other factors further compounding imbalances. Removing social barriers (stigmas) and allowing a free, open market for marriage selection (true natural selection) could increase the desired goal believed to create a more stable society of commitment.
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[update August 2014]

Self-Identity Recognition Not Segmentation: Relationship between Mortgage Backed Securities Market and Segmented Assimilation Theory (My Response)

The United States of America was founded upon the principles of individual freedoms and collective interests to escape historical oppressions. On census data and most other documentation, citizens and fellow countrymen (and women) self-identify for purposes of monitoring equality, fairness, and non-discriminatory practices guaranteed in the Constitution with Amendments and the evolved, supportive constitutional laws. Given such, it is important to gather the information not for separation but for inclusion.

Segmented Assimilation Theory, in my opinion, assumes that generational success can be achieved through a self-identified community pooled interest outside the collective US society. Aside from the contradiction of terms (segmented and assimilation), my position is that humanity and citizenship are not successfully segmental. Differences such as opinions, generational origins, race, and religion at this level can coexist. It is the original vision of the United States of America and its continued progress toward collective individual constitutional freedoms. History has shown that increased integration reduces discrimination, society trends toward greater equality, and provides a check on fairness provided that constitutional freedoms are upheld. Additionally, most successful socioeconomic development requires investment and capital levels which exceed the resources of a segmented community to provide benefits for the entire country.

Pooled risk and prosperity have been essential to the development of the U.S. economy and society. Inclusion has always increased overall prosperity. This concept is found in the insurance industry, mutual fund investing, and social security. The mortgage backed securities (MBS) market initially operated on this basis and the separation-dilution of pooled risk and return created the financial crisis. Mortgages from properties across America were pooled into large securities (bonds) sold by banks onto the global market. To increase the value of the securities, the collateralized mortgages were separated into tranches (risk and return segments) thereby increasing the sales price of the MBS and providing more income to the banks. The increased return expectation (higher mortgage interest rates) attracted more buyers from around the world which increased the supply of funds available for mortgages. More mortgage backed securities (MBS) were created as more banks offered the products. The tranches increased bank financial performance without an adequate impact assessment of the proportional separation of the risk profile.

Banks and investors with the ability to properly assess the riskier securities and market conditions bought insurance (credit default swaps) with an improperly, low priced premium. When mortgages began defaulting, holders of the MBS began losing value as default rates exceeded projections. As the value of the securities fell due to excessive defaults, there were no additional buyers for securities of assured risk of loss (out of the money call option of a deflating asset). Banks with purchased insurance began calling in claims that exceeded the “assessed risk pool value” and total premiums paid. This collective call on the credit default insurance policies caused liquidity issues for the insurer(s) along with the potential reputation damage to the U.S. financial industry for investment losses of workers' savings from around the world.

Essentially, banks around the world purchased American mortgages (using, in some cases, retirement funds from their country's workers) fueling the accelerated growth and excessive investment of the housing market. The securities were segmented which diluted “risk sharing” to increase value (bank income and cash flow). This financial strategy can be effectively executed provided that necessary control evaluations and diligence are in place to properly identify the risks. The bailout of banks and insurance provider was essential due to the source of some funds used to purchase the mortgage backed securities.

The separation of pooled risk and return evidenced in the MBS segmentation crisis is similar to the issues I associate with the social science Segmented Assimilation Theory referenced in a previous post: Gatekeepers and Modes of Incorporation. Following a social philosophy of Segmented Assimilation Theory, in my opinion, will lead back to the failed separate but equal policy of the past. The common issues between the social theory and financial segmentation include:

• Equal access to development resources (capital allocation problem);
• Improper assessment of risk due to the lack of pooled interest;
• Imbalance in capital accumulation to certain investments creating market "bubbles";
• Improper capital investment decisions due to underestimated risk and return.


An economic agenda for Shared prosperity is essential for healthy societal development.