Imagine a fairy tale where I offer you a choice between two jobs. You can have a tax free job or a job with a 90% tax on its income. You might jump at the tax free job, but a smart person would ask what are the salaries of the two jobs. I’d say the…
Category: Economics
The Ironic Advice of a Billionaire
“How many yachts can you water-ski behind? How much is enough, huh?” Bud Fox (Charlie Sheen), Wall Street (1987) The Powerball lottery prize is up over $1,400,000,000 this week. If you win and take the lump sum, which in my opinion you should, you would have about $651 million left after tax. Needless to say…
Scary Tax Stories From Beyond the Grave
[I]n this world nothing can be said to be certain, except death and taxes. Benjamin Franklin Letter to Jean-Baptiste Leroy (13 November 1789); reported in Bartlett’s Familiar Quotations, 10th ed. (1919) Yesterday when I wrote about income inequality it may have seemed like I implied the solution to the problem would only come when people…
The Problem with No Face
The life of money-making is one undertaken under compulsion, and wealth is evidently not the good we are seeking; for it is merely useful and for the sake of something else. Aristotle, Nicomachean Ethics, Book I, 1096.a5 As election day approaches it’s been easy to see some of the ugly problems facing the United States…
The Illusionary Value of Gold
Poor is the man who can boast of nothing more that gold. -William Scott Downey, Proverbs Ch 1, #11 (1858) In the article, The Shared Delusion of Money, I discussed some of the delusions surrounding the “value” of money. The other day I overheard someone talking about how they wanted gold and diamonds for the…
The Shared Delusion of Money
The lack of money is the root of all evil. -MARK TWAIN, Mark Twain’s Notebook I was explaining Bitcoin in an econ class the other day, and that drove home an idea that I’ve been thinking about for a while. That is the value of our money is based on a shared delusion. The delusion…
The Spiritual Poverty of the Rich
The 1% are in the news, and everywhere you turn people are talking about them (mostly themselves talking about themselves). The greed and selfishness they exhibit is staggering and disheartening: The latest is the idea that rich should have more say in government than the poor, put forth by a crazed rich white dude, “You…
