Mental Model by Joshua Kennon

Mental Model: Cui Bono

Mental Model: Cui Bono Lucius Cassius Longinus Ravilla was a famous Roman judge, who, according to Marcus Tullius Cicero, was regarded as an “honest and wise” man.  He was known for a habit of constantly asking the question, “Cui bono?“, which roughly translates into “who benefits?”. In a crime or a political scheme, Lucius Cassius…

What Is Money?

Occupy Wall Street Part II: What Is Money? Do Liberal Arts Suffer at the Hands of a Capitalist System?

Yesterday, I explained how most of the people in the Occupy Wall Street protest haven’t yet realized the struggle isn’t between the rich and the poor – it is between the knowledge workers and manual workers, which Peter Drucker predicted in startling detail decades ago.   Charles Hughes, a professor at Henderson State University, had…

Top 1 Percent of Net Worth and Wealth in the United States of America

How Much Money Does It Take To Be In The Top 1% of Wealth and Net Worth in the United States

What does it take to be in the top 1% of wealth in the United States? Many of you write me and ask that question, hoping someday to make it into the top 1% of net worth but not sure where that line gets drawn. I thought it might be useful to provide a reference to which I could point people in the future whenever they write, as well as make for some interesting afternoon reading for those of you who are curious about the nature of the economic world in which we live.

Understanding Poverty by Ruby Payne

Being an Effective Educator and Communicator Requires an Understanding of the “Rules” of Your Students’ Social and Economic Class According to Ruby Payne’s Book A Framework for Understanding Poverty

My lunch with friends yesterday turned into a 3 to 4 hour event as we hung out at a local independent pizza parlor and discussed kids, love, True Blood, taxes, and a host of other things.  The topic of poverty came up (as is inevitably bound to happen when the group includes a social worker,…

Mental Model by Joshua Kennon

Mental Model: Information Asymmetry

Mental Model: Information Asymmetry For the past month or two, there has been a running joke at the office that I’ve been giving Aaron a hard time about, providing me countless hours of entertainment.  It is a good illustration of a mental model from economics called information asymmetry and I thought I’d take five minutes…