Dear Ray Dalio: Wealth Inequality Is Not Our Biggest Issue

Ray Dalio, one of world’s richest men, recently published a think-piece on Linkedin entitled, “Our Biggest Economic, Social, and Political Issue” which, he writes, is wealth inequality: the disparity between the upper 40% and the bottom 60%. The media glommed on to this popular Progressive meme and it got a lot of attention because of his prominence.

Mr. Dalio runs the world’s largest hedge fund, Bridgewater Associates. According to their website they “manage about $160 billion for approximately 350 of the largest and most sophisticated global institutional clients”. Forbes says Mr. Dalio is worth about $17 billion. By any measure he is one of the most successful investors in the world. (more…)

Money: A Semi Fictional Fable





We have forgotten what money is.

Money is easy to understand, but most people have no idea what it is. We all know that barter is an inefficient way to foster economic growth and money is a good thing for the economy. But money isn’t a piece of paper.

Here is a fable to illustrate this. (more…)

How Not To Teach Kids Math

I read a news article by a tenured university professor who asserted that the perception that whites are more math proficient than minorities perpetuates “white privilege” and discriminates against minorities. The professor alleged that whites have an “unearned privilege” because math skills such as algebra and geometry are generally associated with whites. She attributed the “so-called achievement gap” between minorities and white students as a product of implicit or explicit racism due to white privilege. The professor said, in effect, that just because someone is good at math doesn’t mean they are really that smart.

She also said that “all knowledge is ‘relational,’ asserting that ‘Things cannot be known objectively; they must be known subjectively.’” What she meant is that there are no mathematical truths as we know them because students perceive things through their own cultural and political lenses which may be quite different than standard (“white”) perceptions. (more…)

Bending the Knee

This is not about Game of Thrones, but rather our national anthem. In 2016 when 49er quarterback Colin Kaepernick bent his knee during the national anthem it was a protest of a black man against racial injustice in America. It spread from there. Within a month similar protests were seen not only in the NFL but in college sports as well.

That was last season. This football season it became a national issue since Donald Trump waded in with “Wouldn’t you love to see one of these NFL owners, when somebody disrespects our flag, to say, ‘Get that son of a bitch off the field right now, out. He’s fired. He’s fired!’”. That played well in Alabama. (more…)

Taxing The Rich And Other Follies

Even though I have said this before apparently no one was listening so I have to say it again* because every time a new tax reform bill is proposed, the same clichés are trotted out and most of them are wrong. The purveyors of these clichés know they are wrong but they don’t care because they are trying to manipulate you to their ends. And, people fall for them.

Here is what the polls say about what Americans think about taxes (Gallup, Pew Research): (more…)

Why You Should Ignore Economists

If economists are so smart, why are they always wrong?

When I took Econ 101 and 102 as a young college student back in antediluvian times the textbook we were assigned was Paul Samuelson’s Economics: An Introductory Analysis. This book is the all-time best selling economics textbook and is still around today (19th ed.).

I had the 1961 edition. In it, Samuelson, a prominent Keynesian economist who won the Nobel prize in economics, predicted that the economy of the Soviet Union would overtake the U. S. economy in 23 years (by 1984). Even as late as the 11th edition (1980), Samuelson stood by his prediction. (more…)

Statues, Money, and Dead Politicians

When I was a child I became enamored of coins. I had inherited from my father a few large U.S. one cent copper coins dated from the early 1800s. In those days money was made from copper, silver, and gold. These early coins were beautiful objects. The interesting thing and what is pertinent here is that they were decorated with images of “Liberty”, a female head of various styles, or later, a seated Ms. Liberty. Somewhere on the coin was the word “liberty”. The point being that from 1796 to 1909, there were no presidents on our coins. In 1909 the new copper penny bore the image of Abraham Lincoln which is still with us today. We are now following the examples set by Roman emperors and other despots and rulers who wanted their subjects to know who was in charge. (more…)

Is Trump Irrelevant?

Those who had lauded the expansion of executive powers when Barack Obama was president perhaps now see the dangers of an imperial presidency with Donald Trump as president. It doesn’t matter if you are Republican or Democrat, conservative or liberal, because we all know what Lord Acton said about the corrupting influence of power. (more…)

I Told You So

I told you so. I am not gloating but I have been quite correct about Donald Trump in my prior articles. I wish it were not true, but he is living up to my early assessment of what his presidency would look like. Also see here and here. His defenders say that he has accomplished a lot. Politifact, a site which keeps track of what politicians say and then do, has given him credit for accomplishing these campaign promises: (more…)