Tag Archives: economy

Wednesday Afternoon Ramblings – 8/14/2019

Recently, I heard a podcast on Planet Money in which Nick Hanauer described his trepidation about the widening wealth gap in America. In case you aren’t familiar with him, he was an original investor in Amazon. Needless to say, he is on the wealthy end of that equation, and his opinions have ruffled a few feathers. His TED Talk on the subject has been removed, and many wealthy, powerful people disagree with his premise that the wealth gap is an issue.

He proposes that we should implement a wealth tax on the super wealthy in an effort to reinvest that money into communities. While I do agree with him that we need to close the gap, I vehemently disagree that a tax is the correct way to solve the problem.

First of all, the government is too inefficient and too bloated to make a substantial transformation. Maybe, maybe 50 cents on the dollar would get back to the communities that need it. The rest would be sucked into the bureaucratic black hole.

Second, nobody likes to be taxed. Nobody. We pay them because we must, but nobody likes it. Taxation simply feels like extortion. So gathering support for Hanauer’s will be difficult.

I have an idea for a system that would be better, and over the next few days, I think I will share it on here. In the meantime, you should check out Planet Money. It’s a pretty good podcast with a lot of informative stories about economics.

That’s all for now.

Monday Afternoon Ramblings – 6/17/2019

The path to individual freedom begins with economics. My oldest son, who identifies as a centrist libertarian, loves to peruse Tumblr and debate leftists. Through him, I hear a plethora of communist rhetoric being pushed by millennials with what I assume to be good intentions.

If I could convince those people of one fact, it would be this: capitalism is by far the better, more efficient system for economic development. Every single real world attempt at communism has resulted in economic stagnation, shortages, and hyperinflation. The Soviet Union, Cuba, Chile, North Korea, and Venezuela, just to name a few examples. Things are so bad in Venezuela now that a full day’s wages for the average person will not purchase 1000 calories of food.

I get that things are not perfect in our system. We do need better wage structures that are linked to productivity instead of an hourly wage. We absolutely need healthcare reform so that everyone has access to standard care. We must fix education so that students have access to real world skills and knowledge without being saddled by crippling debt.

But those are tweaks to the system, not a complete reversal. I have been as poor as a person can be and had to rebuild my entire life at 43 years old. While I’m not wealthy by any stretch of the imagination, I am successfully picking myself up one step at a time. Over the next few weeks, I will try to catalogue how I have done this and illustrate through economics how anyone else can transform their own lives.

That’s all for now.

Let Them Eat Cake

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I have no doubt that successful entrepreneurs have worked hard to get their businesses afloat and sustainable. I have worked in many different industries on many different levels and have witnessed firsthand just how hard many owners and executives work. There is no doubt that hands-on entrepreneurs put in long hours and suffer incredible levels of stress. I harbor no ill will for anyone who rolls up their sleeves, puts in the hard work, and reaps rewards for their efforts. Hard work and effort should always be rewarded.

However, where I bristle and when the fighting side of me comes out is when someone of means insists their hard work and effort is superior to others just because they have made more money from it. First and foremost, no one does anything alone. Unless you personally built the building, paved all the roads you use, grew or mined all your resources, and invented every piece of technology you utilize, you received help along the way. Unless you were a trust fund baby who decided to gamble your own wealth, somewhere along the way a bank extended you credit. Unless you personally handle each and every step of your day-to-day operations, somewhere along the way employees have helped you achieve success. Those employees who help you succeed, from the janitorial staff all the way to your second in command, deserve to be able to afford the basic necessities of life, have the opportunity to send their children to vocational school or college, and be able to save for retirement. And they shouldn’t have to hold down second and third jobs to do it, either.

I’ve never known financial success personally, but I’ve worked hard all my life, often juggling those two and three jobs just to stay afloat. As an educator, I typically put in 12, 14, even 16 hour days during the school year, and then usually held down some kind of side job during off times from teaching. I’ve witnessed firsthand good, honest, hardworking people clock out from one 8 or 9 hour shift and hustle to their other job for another 8 or 9 hour shift. I personally once worked about a year and half, 12 hours a day, without one single day off except Christmas. In graduate school, we often put in 16 hour days, 7 days a week. We all work hard, and American workers are among the most productive in the world, even today. Yet our wages have stagnated for 30+ years while inflation has skyrocketed. The myth of hard work equating to success is just that: a myth.

If I live another million years, I will never comprehend the utter disdain some people of means hold for working people. I will never grasp how it’s okay for an executive to make $10,000/hr but unreasonable for workers to earn just a living wage. I’ll never understand how it’s good business sense for CEOs to outsource labor to foreign countries, but class warfare when a working person speaks out for rights. My mind cannot fathom the levels of contempt and pure hatred some people have for those “beneath” them. If you measure your self worth in financial terms, you truly dwell in a poverty stricken existence, no matter how much wealth you accrue.