February 5, 2012

Note to Washington: You Cannot Separate Human Psychology from Economics

Predictably Irrational Book

The Huffington Post is talking about Obama's handling of the economy and the world view of his economic advisers now that Larry Summers is resigning. Those policies -- the bailout of Detroit automakers, an $814 billion stimulus package, subsequent programs under TARP, Cash for Clunkers and the administration's unlimited backstop of Fannie Mae and Freddie Mac -- arguably saved an economy that many considered to be on the verge of collapse. But while the recession officially ended last year, … [Read more...]

Men Unlikely to Marry Women with Large Debts

Women in debt are less likely to find a mate

There was an article three weeks ago in The New York Times that began with the following paragraph: Nobody likes unpleasant surprises, but when Allison Brooke Eastman's fiancé found out four months ago just how high her student loan debt was, he had a particularly strong reaction: he broke off the engagement within three days. [snip] (The story goes on to say that Allison owed more than $100,000 due to the cost of her education.) When, exactly, are you supposed to reveal a debt of this … [Read more...]

The Richest Man in Town by W. Randall Jones

The Richest Man in Town by W. Randall Jones

The Richest Man in Town - The Twelve Commandments of Wealth by W. Randall Jones, the founder of Worth Magazine, is one of the great business books I've read this year.  It profiles some of America's most successful self-made super-rich, focusing on the richest person in towns throughout the United States, offering insights into how they made their money and their advice for someone who wants to follow on the same path. The book offers some unique insights, such as explaining that a vast … [Read more...]

The 2010 Values Voters Summit Concludes

Well folks, the 2010 Values Voters summit just concluded and I've got to be honest: It makes me sad.  Mostly, I think it arises from the knowledge that, in a vast percentage of cases, people are not binary in terms of being "good" or "bad".  The same mindset that pervaded the Values Voters Summit seems to me as if it would have resulted, several generations ago, in opposing the Civil Rights Act, before that equal rights and suffrage for women, and before that, the emancipation of slaves.  … [Read more...]

What a Superpower China Means for the United States

The Face of Modern China

When I was 16 years old, I was sitting in the hallways of the local high school, waiting for class to begin, discussing the state of the world with Molly.  She stopped me and asked a simple, direct question: "Do you believe that the life of an American is more valuable than the life of any other human?  Because the answer to that question is going to determine your economic, political, social and moral worldview." As we established in the first essay on the rise of the Chinese … [Read more...]

Why the Chinese Economy Is Destined to Be Bigger than the Economy of the United States

It Is Morning in China, to Borrow a Phrase

In Surprising Facts About America's Population, I pointed out that the top 25% of people in China - the gifted students who out-test 3 out of 4 of their classmates - exceeds the entire population of the United States. This raised some concerns about my enthusiasm for the rise of China.  I thought it would be important to clarify where I and explain how this issue affects you and your family. The Economic Rise of China vs. The Political Rise of China There are two distinct issues that must … [Read more...]

How We Used Shares of Coca-Cola to Teach My Youngest Sister About Investing (and Why the Cycle of Consumption and Financial Stress Starts as a Teenager for Most Americans)

Coca-Cola Direct Stock Purchase Plan and Coca-Cola Dividend Reinvestment Plan or Coke DRIP Literature

When I was a senior in high school, I bought my youngest sister, who was first grader at the time, a single share of Coca-Cola common stock for her 6th birthday.  I had it framed with an engraving of the first part of Deuteronomy 8:18 placed under it, "You shall remember the Lord your God, for it is he who gives you power to get wealth". I registered the ownership as a uniform gift to minors, naming our father as the trustee.  He and my mom decided to have $50 each month taken out of their … [Read more...]

The Reason the Video Game Industry Is Bigger Than Hollywood

Tales of Vesperia

Tales of Vesperia continues to rock my world.  I played for several hours again today after reading wealth reports and working on the upcoming About.com content I've been writing this week (I tend to publish the good stuff over there in big batches because I like for it all to work together and be cohesive).  The rest of my week is going to be consumed by preparing for a Board of Directors meeting with my sporting good company, which will probably be held in Kansas City or Houston, I haven't … [Read more...]

How Do You Get Rich? Do What Is On Your Desk and Do It Well

Do the Work on Your Desk

A fantastic passage from page 97 of The Richest Man in Town: The Twelve Commandments of Wealth.  It talks about how success in life comes down to execution of the work that is sitting your desk, right now.  That means getting it done right, getting it done quickly, and getting it done with pride so that your name becomes synonymous with quality. Put another way, you don't just wake up and suddenly have an empire.  You get up each morning, sit down at your desk, and achieve what you can at … [Read more...]

Free Trade Isn’t Always Fair Trade

Free Trade and Fair Trade Global Policies

A few days ago, I wrote a five-part essay called How to Solve the Trade Deficit in response to a reader question about trade policy in the United States. The reader, Adam, responded on his blog.  Here is my followup to his commentary. I Would Love to Run Trade Surpluses But It Isn't Going to Happen If the United States were to run trade surpluses, as opposed to going trade neutral, we would be accused of mercantilism (rightly).  This would immediately cause our trade partners around … [Read more...]