Paragraph to Ponder

From Tyler Cowen, “The Marriages of Power Couples Reinforce Income Inequality“:

Universal preschool, further experiments with charter schools, and higher subsidies or tax credits for children are among the policy innovations that might lift opportunities for children of lower earners. Even if those are good ideas, it is not clear how much they can overturn the advantage that comes from being a child of highly educated, highly motivated parents with lots of will and also money to spend on lessons, outings, travel and other investments in the future of their children.

The technical term is “assortative mating”. Read the New York Times marriage announcements for examples. In hindsight, I probably should have “married up”. My wife’s beauty blinded me to the fact that she rarely balanced her checkbook; planned to be a public school teacher; and owed more on her old, beat up Honda than it was worth. It’s a limit of the discipline that few economic models factor in “hotness”.

I suspect Cowen’s extrapolating from the present data too much. Sure assortative mating will continue contributing some to income inequality, but as I’ve written before here, academic achievement among female college students so dwarfs that of males that many female college grads will have no choice but to settle for partners with much more modest economic prospects.

Sentences to Ponder

From Three Reasons for Those Hefty College Tuition Bills:

According to the Bureau of Labor Statistics, in 2014 the median worker with a bachelor’s degree (and no advanced degree) earned $69,260, compared with $34,540 for the median worker with only a high school diploma.

From Federal Health-Insurance Exchanges See Nearly Six Million Apply for 2016 Coverage:

Analysts said lackluster enrollment that trends toward sicker and older consumers could prompt some carriers to leave the exchanges: The biggest U.S. health insurer, UnitedHealth Group Inc., said last month that it is re-evaluating whether to sell plans on the marketplaces because of losses on policies sold on them.

From The home-grown threat:

Since 9/11, over 400,000 people have been killed by gunfire in America and 45 by jihadist violence, of whom half died in two shootings: one carried out by a Muslim army doctor in Texas in 2009, the other in San Bernardino.

[Highly recommended. The single best ISIS-related thing I’ve read in recent weeks.]

 

Trenchant Research on How Birth Order Affects the Way You Spend Money

Thanks to Brown and Grable by way of Horkey for this description of how birth order affects the way we spend money.

Was blind, but now I see. By “trenchant” I mean amazingly facile.

First born. My oldest brother. The best editor I’ve ever had:

The oldest child in the family tends to be mature, confident and, more often than not, a perfectionist. As a result of the responsibilities and expectations placed on them by parents at an early age, older siblings are well organized and generally in control of their lives.

‘Firstborns handle money differently. I see a pattern in a lot of people that I know. They are viciously protective of making sure bills are paid on time and living within their means, which includes building savings and investments.’

Middle child(ren). My sissy and older brother. The best middle siblings I’ve ever had:

“While the oldest child is often given the lion’s share of attention from parents, and the youngest can typically do no wrong, the middle child might feel lost in the shuffle.

Middle children are resigned to the fact that someone is always both ahead of and behind them in terms of familial structure. As a result, they are often found to be naturally gifted problem solvers with excellent negotiation skills. And when it comes to financial habits, the middle child is a born saver, with nearly 65 percent of the group contributing money to their savings accounts each month.'”

The youngest. Myself. Such a perfect, little, Idaho potato that my parents immediately decided to procreate no more:

“More often than not, this person is. . . the life of the party.

While the youngest children might seem charming and fun to be around, they also tend to demonstrate bad spending habits and are typically the least financially responsible of their siblings. It doesn’t help that parents have often become more lenient about discipline by the time the second or third child is born.

Parents have a habit of overindulging and spoiling the youngest children in families. Ultimately, this desire to protect the baby of the family can backfire, causing the individual to spend rather than save for a rainy day.”

Thanks to these poignant insights, I’m going to start trying to save more money. All while remaining true to my life of the party, charming, fun to be around self.

 

Read This If. . .

You enjoy iconoclasts, craft beer, and independent businesses—Dick Cantwell’s Beer is Immortal (Allecia Vermillion).

You think we’ve ruined kindergarten. The Joyful, Illiterate Kindergartners of Finland (Tim Walker).

You wonder what makes dogs happy. Hint: The answer is in their tails. The secret lives of dogs: Emotional sensor helps owners understand their pup’s feelings (Michael Walsh).

Inside Amazon

Despite only being two to three days old, this New York TImes Amazon expose has generated 5,735+ comments. And a rebuttal by Amazon’s founder and CEO, Jeff Bezos.

First, let’s acknowledge that the trustworthiness of the Times’s investigative reporting has regrettably slipped in recent years. Despite that, it’s an amazing peek inside the company that so many consumers, myself included, have to this point mindlessly supported. And by amazing, I mean really disturbing.

It’s a precautionary tale for any business or organization that believes data analysis or “metrics” is the answer to all problems.

Bezos says its not the company he knows. That probably means he’s completely lost touch with most of his employees’ day-to-day realities.

Amazonians’ long hours and personal sacrifices might make sense if it had a more inspiring mission than sell more shit and dominate retail. Another reminder that materialism shapes 21st Century U.S. life and wealth is a powerful motivator.

In skimming a small cross-section of the comments, I was struck by how many readers said they were completely cutting the Amazon chord. Will they follow through? Will they slow the giant retail supertanker? Time will tell.