I think a lot about money. I keep a detailed Excel spreadsheet listing all my assets and current values. I wish I didn’t. But I do. I hope you don’t, Vera. But there’s a good chance you will think a lot about money, too.
(Thanks to Harry Stevens at Axios for the above chart.)
I’m still pissed at the way our Attorney General ripped our youth yesterday. So I thought it would be helpful to share some data on the ways life was so much easier for Mr. Sessions and me back in the day.
You’ll see how the cost of college has skyrocketed, Vera. And, yes, we are comparing apples to apples: all the numbers are inflation adjusted.
What isn’t shown here is the roughly $1.5 trillion of student-loan debt that our youth and others carry on their backs thanks to misguided policies emanating from Washington (both Republicans and Democrats).
You’ll see above how the median income hasn’t budged in all these years, despite the huge increases in education and health care expenses. How did we pull it off? By going deeply into debt. Which makes Sessions and his cronies happy, of course, because where some see debt others see profits.
People also have dealt with the economic headwinds by putting off marriage and buying a home. And more of our youth are living at home with their parents longer.
Yes, Mr. Sessions, let’s ridicule our youth. If we get everyone to focus on them, perhaps they won’t notice how you and your party are destroying the middle class so the wealthy can have an even larger share of the pie. Glutton!
I’m done venting now.
Some highly respected investors were making this point on Twitter recently: when it comes to investing, you’d better check your religion at the door. Continue reading
If I were the parent of a pre-teen or teenager, I would not allow him or her to use Facebook or Instagram. Continue reading
What do you see when you look at this chart?
This kind of stuff fascinates me, Vera. Humans are basically the same, yet in certain respects we are vastly different. Take, for example, the above graph. People will look at it and see different things. Continue reading
“The soonest you can file for Social Security is age 62. For each year filed early, there is a penalty of 8%. Despite this, 72% of Americans collect at age 62.
If you delay collecting until age 70, benefits will increase by 64%!” (Josh Brown) Continue reading
Prices are going up. For years, we’ve been told we’re in a deflationary period. Economists have further opined that the retirement of the Baby Boomers would be deflationary. But I’m thinking they’re wrong. Continue reading
We think it will. We live as if it will. But it won’t. Continue reading
What do I understand (or at least think I understand) now that I wish I had understood when I had began my journey through adulthood? It’s of no consequence to me, of course: it’s impossible to turn back the clock. But it might be of some help to you, Vera.
In looking back I’m struck by how naïve I was when I came out of high school and, four years later, college. I had little appreciation for what the world was really like. Growing up in a working-class family in homogenous rural south-central Pennsylvania hadn’t exposed me to much. My world was very small.
More than four decades of career experiences in law, business (CEO), government (special agent for DOD and, later, cabinet secretary), and higher ed (college president) changed that. To a degree. There is still much about life I don’t understand or, perhaps more accurately, refuse to accept. I’m still learning and always will be. Nonetheless, life has imparted a few lessons along the way.
Some of the lessons were easy to learn; some were hard. Some were moments of euphoria and left fond memories; some were painful and left scars. Others were learned merely by reading or observing. (It’s always preferable to learn from other people’s wisdom or mistakes.) I decided to compose a list of what I consider to have been some of the most important lessons.
What the list isn’t, however, is a list of rules to live by. I’m not fond of rules and would never suggest life is so easily mastered. Moreover, as I’ve mentioned before, I have absolutely no desire to tell you how to live your life, Vera. Rather, I’m simply sharing some of the things I wish I had better understood when I was young, starting out.
Some of the lessons are practical; some are of the existential variety. The list is neither complete nor final. After all, I’m still learning.
Please don’t infer an order of priority, for none is intended. “You” and “your,” below, refer to me; it is as if life is speaking to me. Occasional personal comments follow parenthetically. Continue reading
If you’re confused about President Trump’s trade policies, I suggest you revisit the transcript of a March 2011 interview, where Mr. Trump put forth his views clearly and succintly. Here’s an excerpt:
Now, most economists don’t like this reasoning, not one bit. They think it’s ludicrous for people to pay more for products and services than they’d have to pay if the market was allowed to find an equilibrium unencumbered by tariffs and other trade barriers. In other words, why pay $2,000 for a sofa made in North Carolina when you can purchase an equivalent one made in China for half that price?
Understandably, though, people who’ve lost they jobs to foreign producers see it differently. Being unemployed, or severely underemployed, tends to frame most issues in a deeply personal way. Their concern is jobs, plain and simple. They don’t much care whether shoppers at Walmart will have to pay more.
This is a gross oversimplification of the issues, of course. Economists could and have written entire books on the subject. But people tend to see issues in pretty simplistic and stark terms. Nuances and complexity don’t count for much when your job is at stake, whether you’re a domestic worker or a foreign one who’s making products for the U.S. market.
The one thing most people can agree on is the need for fair trade. And, admittedly, many of the trade rules aren’t fair by any reasonable standards. It’s not that some people and companies, including Americans (including most consumers who have good jobs), haven’t benefited from the rules as they are. They have. But that’s merely an acknowledgement that, no matter what the rules are, there are always winners and losers.
From my perspective as someone who may be retiring soon, the tariffs aren’t a welcome thing. My income will be relatively fixed (depending on my investment returns) while the costs of goods will increase due to these new taxes and the inevitable upward pressure on prices, and downward pressure on quality, caused by less competition and imbedded structural inefficiencies.
But, of course, the tariffs may be welcome to some people, namely, those who may secure jobs that are supplanting imports. However, the number may not be significant, and they may be dwarfed by the number of people who lose jobs due to retaliatory tariffs imposed by other countries. Even without the offset of lost jobs, the number added may not be as significant as some people believe.
The reason is simple: technology. Robots and computer-assisted machines and processes already have displaced many workers, including many of the workers who mistakenly think they’ve lost their jobs to foreign workers. And this phenomenon is just getting started. It’s likely to spread farther through the ranks of both blue and white-collar workers no matter what happens with tariffs.
Which brings me to my main point: young people shouldn’t be distracted by the tariff debate. Rather, they should focus on that which they can control and influence, namely, their own learning, knowledge, and skills in the context of a world in which more and more human activity will be taken over by computers and computer-assisted machinery, no matter what tariffs are in place.
This transformation has huge implications for people. No one can be sure how it will all play out; however, it’s likely it will result in a further stratification of workers and even less equal distribution of income and wealth.
When I was teaching, I tried to challenge my students to address this question when choosing a major and potential career path: What will you be able to do that computers won’t be able to do better? Not only today, but in the decade ahead.
American workers’ stiffest competition in the years ahead won’t come from China: it will come from digital technology. Mr. Trump’s mindset is stuck in the 1950s. When you’re a 71-year-old billionaire, there is little risk in that. If you’re in your 20s and aren’t a billionaire, there is a whole lot of risk.
The aging Baby Boomers who are hostage to mindsets formed in the 20th century will be consumed by debating the president’s policies. The smart young people of the 21st-century will focus on the things they can control. And will be preparing for a future than will look very different from the past.