All Things Considered–Long Weekend Edition

• How to teach personal finance.

• The power of the pen. The bin Laden papers were going to be released independent of Hersh’s London Review story of ObL’s death. And Hilary Clinton really wants all her emails made public. And Tom Brady’s never done anything wrong. The Obama administration says Hersh’s story is “filled with inaccuracies”. Which is a lot different than saying it’s untrue.

• Best sports presser of the week.

• Warren Buffet, minimalist. “Money has no utility to me anymore as I am very happy with what I have but it has enormous utility to others in the world. More possessions to me would actually be a liability more than an asset.”

The data was faked.

Seven uncomfortable truths about living in Norway.

• Minimum wages compliments of Look out Columbus, Seattle is closing fast.


What Engineers Get Wrong

Mr. Money Mustache, a former engineer and Longmont, Colorado-based blogger, has struck a chord with his retire early gospel. To the tune of about 800,000 separate vistors and 3.5 million page views a month. A large part of his appeal is his directness about people’s tendency to waste money unnecessarily.

I like his thesis that community is far more fulfilling than material pursuits, but dislike the groupthink his followers often display.

His advice is to get a good paying job (easier written than done) and then work for 10-15 years saving half of what you earn. Then, when you have $500k or so saved up, quit work and spend time doing whatever you find most meaningful. For him that’s blogging, carpentry, and spending time with family and friends. $500k is far less than nearly every other retirement “expert” recommends saving. MMM believes everyone can do what his family does, live quite comfortably on about $25k a year.

Their house is paid off and they have one inexpensive car that they rarely use. Instead, they bicycle almost everywhere. His most recent post was titled “Bicycling: The Safest Form of Transportation”. That post has generated over 360 comments, many which consisted of a mathematical back and forth, some challenging his use of statistics, others defending him.

In reply to one commenter, he shouted, “You can’t disagree with the math by listing four pieces of anecdotal evidence!” And then, at the end of the of the same reply added what might be the engineers’ motto, “Calculations and spreadsheets for everything.”

These aren’t just the words of one widely read blogger, they succinctly articulate the central message of a wide range of policy makers that see data analysis as a panacea for nearly all of society’s ills. That belief, “calculations and spreadsheets for everything,” is what informs the emphasis upon STEM education—science, technology, engineering, and math—at the expense of the the humanities, the arts, and foreign languages.

I can’t help but wonder if MMM only interacts with other engineers with the exact same “calculations and spreadsheet” worldview. Mind boggling that someone as smart as him believes that any spreadsheet might make someone less afraid to ride their bike across a major metropolitan area. As if phobias are rational and can simply be argued away with math. If that was true, people wouldn’t see psychologists, they’d see mathematicians. “Let’s see, you’re afraid of flying in airplanes. Take a look at this spreadsheet then.”

Engineers think people are rational. If that were true, people would change their favorite Starbucks order based on their new calorie charts and every investor would always buy low and sell high. A more realistic counter motto is “Subjective emotions for everything”. Few people study calculations and spreadsheets when making friends, love, or decisions about how to get to and from work. They do it based upon a messy, unscientific, imperfect combination of intuition, feel, and emotion.

That’s what engineers get wrong.

Job Prospects in the New Economy

Last Sunday the family and I woke up at 3:45a to drive the college junior to the Portland airport to catch an early flight. The airport was the midway point of our ultimate destination, a vacation spot in central Oregon. Like a couple of comatose puppies, the high school senior was curled up with her older sissy in the back seat of the car. Picture overlapping blonde hair everywhere. While they dozed the GalPal and I listened to a BBC segment about job prospects in the new economy.

The participants were Oxford or MIT professors. Cut me some slack, at 4:30a.m. the world’s best universities all kind of blur together. They made two points, the first which I’ve been making for awhile. The more my daughters (and their friends) develop sophisticated data processing knowledge and skills, the more job opportunities they’ll have. Quantitative analysis is probably a better term since data processing might conjure up mindless keypadding. This turn towards numbers is not a fad, the Quantitative Era is here to stay. Nearly every organization is analyzing more data than ever before—hospitals, schools, businesses, prisons, college and pro athletic teams, churches, you name it. People steeped in statistics and adept at using SPSS will be able to write their own tickets.

Which doesn’t help the sound asleep sisters. They did well in math, but didn’t embrace it, and have and will stop as soon as they’re able. According to the egghead professors, all is not lost, there’s another strand in the economy that holds promise for secure employment. Work that requires empathy.

They highlighted the work of preschool teachers. I was surprised by the choice, but clearly, unlike most jobs today, skilled preschool teaching can’t be automated because it requires nonstop empathy. The problem of course is unlike most quantitative analysis jobs, preschool teaching doesn’t pay a livable wage.

This excellent BBC dialogue made me think about our empathetic daughters who may end up leveraging their empathy as teachers or counselors. Other empathy-dependent jobs include pastor, social worker, nursing home worker, and nurse.

Had the BBC invited me to participate in the dialogue I would have posed some questions.

• Given the breadth of probable work in the future, why do we emphasize STEM education (science, technology, engineering, and math) at the expense of the humanities and related disciplines?

• Certainly, empathy is part nature, but also part nurture. How do parents nurture empathy?

• How do primary and secondary teachers encourage it—without usurping parents’ rights?

• More specifically, how do we help young males be more empathetic?

As always it seems more questions than answers, for me, for you, for the sleeping sisters and their friends.