A primer on how the economic engine works through coordination between savers, investors, consumers, producers, governments, and banks. How hoarding and unfair competition can lead to economic distortions. Topics covered include: How spending and saving are connected including the paradox of thrift How borrowing money can lead to higher income and savings and potentially to bubbles How hoarding differs from investing and why too much hoarding can deprive businesses of … [Read more...]
430: How Should Personal and National Wealth Be Measured?
How we measure wealth, riches, abundance, and well-being is more important today than ever. Topics covered include: How late 18th century philosophers Adam Smith and the Earl of Lauderdale defined wealth and the role of capital. Why they worried about income inequality and excess profits What led to the dramatic increase in life expectancy and wealth in the 20th and 21st centuries How a long life expectancy and well-being can be attained at much lower levels of wealth Why … [Read more...]
88: Are You A Stock Or A Bond?
Our total wealth includes both financial and human capital, which is the value of our future employment earnings. How to consider both in your asset allocation. Photo by Nicolas Raymond In this episode you'll learn: What is human capital.How human capital gets converted into financial capital.What is habitat utility.How do you factor human capital into your asset allocation.How insurance helps hedge human capital. Show Notes Are You A Stock or A Bond? Identify … [Read more...]