Explaining Southern California's economy

The Future of Wealth in LA: How LA stacks up

The above chart is from the a new report, "The Future of Philanthropy in L.A.: A Wealth of Opportunity," which I blogged about yesterday. The red line is LA County's projected transfer of wealth from 2010-2060, plotted against other counties (and cities, such as Detroit, Philadelphia, Chicago, Brooklyn). The growth rate is anticipated to be 8.7 percent yearly. That's a pretty torrid rate and, as you can see, will enable LA to outpace other major metro areas by a wide margin.

Growth always sounds great, but it can create challenges. For example, when countries grow too fast, they can have problems with inflation: too much money becomes available too fast to buy too few goods or services. Governments can get headaches trying to manage this.

In terms of the looming transfer or wealth in the LA region, the challenge is for non-profit organizations to get ready for it to happen. If your philanthropic metabolism is based on the present levels of wealth transfer, it's going to need to evolve to deal with wealth transfers that will be, as the report points out, 1,303 percent higher than Philadelphia, at an extreme.

A good problem to have. But a problem, nonethless. And one that LA's non-profits need to not procrastinate about solving, as the report insists. 

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