Posts Tagged Education


Over the five years of this blogs existence, I have often wondered how to treat certain financial terms.  When I stop and provide a short description (of the term), that can break the flow of the discussion.   So, how do I inform or educate all readers, without annoying those with a greater financial awareness?

For instance, the media may take different approaches in reporting various economic statistic, such as the GDP—Gross Domestic Product: which is the total of all goods and service produced by a country (or other entity).  The general print or broadcast media might provide a brief explanation of the particular statistic, when announcing it.

Print media snd cable TV stations, which regularly report on financial topics; however, would not.  Rather, they might place the particular item into some form of context, such as: adding the quarterly GDP; its advance or decline for the Year; or perhaps the actual, versus the projected, GDP statistics.

I have decided to create a “Financial Terms” Tab, which may be accessed at the top-left of this blog. For anyone seeking more in-depth information on the term, they might link on Investopedia, or any of a number of other financial-related web sites.  Rather than try to include a wide range of terms, all at once, I will build upon the terms to be included, over time.

NOTE:  Keep in mind that financial terms and concepts might be included in posts, which discuss other than financial topics.

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I’m sure that some people would find the “Books that I recommend” list much easier to use if everything were organized into quite distinct categories, such as: Politics; History; Science—or, at least, Fiction and Non-Fiction.  But, that’s not how my mind works.  It’s just too cluttered!

Consider the most recent addition (and yesterday’s post): “Three Days in January”. President Eisenhower left the Presidency 57 years ago; but the real story, I believe, is a combination of:  World War II and Early Cold War History; reflections back to our Founding Fathers, and what their intentions were, with regard to the Constitution; contrasts of the Leadership styles between Ike and JFK, and the lack thereof with Trump. and, lastly, the peril which the Military Industrial Complex might present today, especially in the hands of a Fool.   Now tell me, how would you categorize that NY Times Best-Seller?

“Freeman” is a well-researched historical novel about Racism in post-Civil War rural Mississippi.  That book, not only depicts the reality of how both blacks and whites regarded one another, at the time; but, it also provides some insight as to Racism, as it is today in America today, and particularly, in the rural South.

“Moneybag” is nominally a book about baseball; but, it is really more about the use of statistics in player personnel management.  The Oakland A’s had one of the very smallest budgets in Major League Baseball; however, for a time, they compiled better Win-Loss records than all but a few of the league’s 30 teams.  The A’s realized that some of the more pedestrian statistics, such as: on-base average; total bases and “small ball”, won more games than often considerations: physical looks: home runs and fielding.  For the owners, that approach was more “cost-effective”.

Statistics has also played an increasingly important role in general decision-making theory.  Much of what is pointed-out, by Michael Lewis, the author of “Moneyball”, is based on the insight of the two Israeli Psychologists, who are his main subjects in “The Undoing Project”.  Those psychologists won the Nobel Prize for, get this, Economics, in 2003.  Their research has led to: the creation of the new field of Behavioral Economics; revolutionized Big-Data studies; advanced evidence-based medicine, and helped rationalize government regulation.

NOTE:  If anyone can devise an algorithm, which will organize my “Books That I Recommend” tab, please send me the “For Idiots” version, so that it can install itself.

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On May 17, 1954, Thurgood Marshall, Chief Counsel for the NAACP, successfully argued the case of Brown v. Board of Education of Topeka, Kansas,  before the U. S. Supreme Court.  In it’s ruling, SCOTUS overturned the 1896 Plessy v. Ferguson decision, which established the “Separate, but Equal” status in America’s Public Schools.  The divided school systems, however, were  anything, but “Equal”.  Institutionalized-racism might a be better term!   In 1967, Mr. Marshal was sworn-in, as an Associate Justice, on the U. S. Supreme Court.

Racism remains ever-present within our Public Schools today.   Some is institutionalized, and some is political.  Consider several of the more appalling varieties:

1.   Since real estate taxes are a primary funding source of public schools, the “White Flight” of higher-income families to the wealthier suburbs, generally in separate counties and school systems, results in better-funded suburban schools, as compared to those in the Inner Cities (i. e. Chicago, Detroit, and Philadelphia).

2.   Some states allow smaller “independent School Districts” to be formed in wealthier areas.  Higher income families seek larger, more-luxurious housing, which leads to higher property taxes and, thus, to better-funded public schools.  (Similar to #1 above.)

3.   Politicians often create the atmosphere where newer, and better, schools are located in wealthier areas, with some minority students bused-in.  Accordingly, these schools have better teachers, and newer equipment and facilities, as compared to public school schools in poorer parts of town.

4.   Charter schools may be established separately from the public school system; however, they receive funding from it—thus reducing the local system’s financial resources.  Charters are generally able to be more selective in the students they admit, but there is often little correlation between selectivity and performance. Prerequisites for the corporate organizers of Charters, as well as the administrators and teachers are often dubious, depending upon the particular state.

5.   Vouchers transfer a portion of the per-student amount,received by the school system, from the state and local government, to private schools that accept them. Since private school tuition and fees are usually much more expensive  than the voucher provides, poor families generally cannot afford the differential for their children to attend, especially if they hame several children in school.  But, wealthy families get a freebie!

It is difficult to expect that Donald J. Trump, who has vowed throughout his campaign that he will use Charter Schools and Vouchers to “improve our Educational System”, will not nominate an Education Secretary who will not advocate for “School Choice”, as well as other forms of institutionalized racism.   If Mr. Trump really did want to improve the American Educational System, he would nominate someone with actual education experience—rather than someone who ereportedly contributed $11 million to his campaign!

Betsy DeVos, who is Trump’s nominee for Education Secretary, is a member of the super-wealthy DeVos Family of Amway Fame.  Mrs. DeVos is active in the National GOP, advocates for School Choice, and was one of the architects of the Detroit Charter Schools Program, which apparently has performed on a par with the City’s overall failed and underfunded Public School System.

Betsy DeVos is hardly a realistic solution for America’s Educational System!

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Our supermarket, with stores all over Florida, stocks shelves according to the store-specific demographic—elderly, families with children, Hispanic, Asian, West Indian, Kosher, etc—which they know from what products are regularly purchased in each one.  Likewise, my computer distracts me with unwanted pop-up ads, for products based on the web sites I frequent.  So, what has the established purveyors of global health statistics been doing with those numbers, to solve life-or-death problems globally?  Apparently, not much!

Christopher Murray earned his Ph.D. in Medical Health Economics from Oxford, and a Medical Degree from Harvard.  Dr. Murray, however, neither practices medicine, nor does he even follow the stock market.  While researching his Dissertation at Oxford, he realized how sorely inconsistent, and useless, many of the statistics amassed by the various institutional bureaucracies actually were.

The focus was mostly limited to Early Childhood (ages 0 to 5) and Maternal Deaths. The World Health Organization and World Bank statistics for Life Expectancy for Men in Congo, for instance, between 1980 and 1984, differed by 15 years, with similar discrepancies for other nations, as well.  In another case, identical statistics for a particular disease were reported, for economically disadvantaged Somalia as it was for Sweden, which has one of the world’s best health care systems.  My supermarket, on the other hand, knows shopping patterns and re-supply needs, for each of its stores, and acts on them in order to enhance profits.  Why not enhance Global Health?

It appears that political motives might be involved, such as maintaining an organization’s level of stature within the overall Global Health arena, perhaps, are of greatest importance.  And focusing on Children’s Deaths might possibly make the fund-raising efforts much more engrossing.  But, why raise the funds to collect the statistics and, then, fail to act effectively on them?

Also, wouldn’t the elimination, or even the control, of a particular global health  problem, such as Small Pox, enable those resources to be shifted to other life-threatening diseases?  Wasn’t that the original purpose—perhaps a long, long time ago—to collect meaningful data, analyze it, set realistic expectations, and get the data and the appropriate resources out to the field?

Dr. Christopher Murray, a New Zealander by birth, met Dr. Alan Lopez, an Australian, at WHO Headquarters, in Geneva, Switzerland, and they began a collaboration to bring some sense to the global health statistics field.  They realized, however, that WHO would not be a suitable launching pad!  Throughout the ensuing 30 years, Murray and Lopez have encountered considerable skepticism among some in the Establishment, primarily at WHO.  But many other groups, within the global health care community, have embraced their ideas, and even promoted them to colleagues.

Besides expanding the data collection landscape beyond just Early Childhood and Maternal Deaths, Murray and Lopez also included Disabilities—illnesses which generally do not kill people—into their metric.  Early on, Chris Murray had developed his own measure of heath, the Disability-Adjusted Life Years, or DALYs.  The DALY reflects the average degree of health for a nation, from which Labor’s legitimate contribution to the GDP might be identified, as well as the potential future demand for health care services.

For instance, let’s assume that a 75 year-old person, in perfect health, is assigned a DALY of 75.  (Apparently there was apparently nothing to adjust for.)  Then, a similar-aged person, who developed a partially incapacitating illness, assigned a 20% disability rating at age 40, would have a DALY of 68 (40 + [80% of the remaining 35 years]). This metric is much more relevant to Labor and National Ministers of Public Health.  (Also, the disability ratings would be updated regularly, by country.)

With their Global Burden of Disability metric in hand, Murray and Lopez began selling the on-line concept to National Ministers of Public Health.  The fact that anyone—ministers, politicians or the general public—can access the data base, free of charge, (, means that the Public Health Ministers can more easily sell it to their colleagues, refute politicians’ objections, and encourage a buy-in by the general population.

The Bill and Melinda Gates Foundation had provided initial funding, which began the (now) Institute for Health Metrics and Evaluation, at the University of Washington.  The Gates Foundation had recently begun focusing on health care in impoverished nations, and its recognition of the importance of comprehensive statistical analysis in monitoring its funding, provided obvious legitimacy.  The metric’s focus can also be narrowed to individual cities, or regions, as is currently the case for Seattle, Washington, as well as a few other areas.

Additionally, the benefits of education have been cited, time and again, in various areas, and it appears to very specifically have a direct correlation with health care—especially for women and girls.  For instance, IHME has found that national health care seems to improve by ten percent with just one additional year of school, on average.  When China had a stunning surge in its GDP of ten percent; however, that only improved health care by one percent.

Just yesterday, I went on to the WHO web site, and I noticed that it still doesn’t appear to have embraced the IHME’s GBD concept.  In 2012, Dr. Richard Horton, Editor of the prestigious peer-review medical journal, “The Lancet”, suggested that Murray’s and Lopez’s GBD Metric is on a par with the Human Genome Project. And, then, he went on to say that: “Even Galileo was considered a radical in his time.”

NOTE:  The compelling story of Dr. Christoper Murray, and his collaboration with Dr. Alan Lopez, is a compelling, and vitally, important one.  It is eloquently told in “Epic Measures”, by Jeremy N. Smith.

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In a prior blog post, I had compared the two most popular vehicles for establishing Educational Funds for Minors—the Uniform Transfers (also called Gifts) to Minors Account and the 529 Plan—linked, as follows: I prefer the UTMA, since:  investments may include all types of securities, and there is more flexibility as to using the money.  The investment process might also be educationally valuable to the child(ren), as well!

There was an interesting book, “Age Wave”, written by psychologist Ken Dychtwald, back in the late ‘80s.  In it, he traced the economic impact of the Baby Boomer Generation, as they passed through life’s stages:  infants; toddlers; young children, pre-teens; teenagers; to young adults.  Think about it:  Gerber’s; Mattel; Disney; cosmetics; Nike; autos, etc.  I believe that the investment process, behind funding an education, can be a learning process for the child, and a relationship-building opportunity for the parent or grandparent.

My Wife and I started an UTMA Account for our Grandson, Henry, when he was six months old.  Anyone can make annual additions to such an account up to $14,000 ($28,000 for a couple), and to each child, which would be exempt from the Federal Gift-Tax.  Personally, we believe that lifetime gifting is much more satisfying than just leaving a legacy through your Estate.

Henry will be four years old in six weeks; so, he is still too young to participate in the investment process.  But, I have been laying the long-term groundwork by investing in companies, as I see fit.  Once he’s approximately seven or eight, however, we’ll let him know that we have established such a fund, and point-out older cousins or family friends who have been to college—to build an interest.  But, great careers can certainly be made from vocational school and apprenticeships, as well!

Once Henry decides whether, or not, to become involved, he can initially suggest products that he likes; and over time, we can do computer searches to see if the sales have grown—as more of his age group wanted those products or services.  As he sees his account grow, he might find interest in tracking it on a spread sheet and, at some point, begin to see the advantages of products that he doesn’t use from an investment standpoint, and that the products he does like might not be economically feasible as an investment.  Any detailed analysis would only be at his suggestion.  Seriously!

The important goal here is to establish an account to fund higher education, if you can; but, it should not be used to force a child to go to college.  Likewise, allow the child to be as involved as they wish to be in the investment process, or prefer not to be.  Likewise, permit them to engage at times of their choosing!  Besides preparing early for education, the other important goal should be to have things that parents and/or grandparents might do with the children and young adults.


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China’s economic growth, over the past 35 years, has enabled its Economy, by measure of the Gross Domestic Product, to rise to be second only to that of the U. S.  Ironically, many of the other nations of East and Southeast Asia have also done so, by similarly educating the girls, as well as the boys.  Educating females doubles the labor force and, as the economy grows, the Chinese People advance into higher pay-scale jobs. The larger workforce also enables country to move-up, into more-advance ed industries, as we as increases the Nation’; several standard-of-living.

China, like India, is held back, however, by its extremely large 1.35 billion population.  Unfortunately, China has been slow to expand beyond its initial economic explosion.  Currently, only 25% of Chinese workers are employed in the Industrial Sector, while the remaining 75% are still less-educated, and work mostly on small family farms, or repair and retail shops.  China should hardly be considered a fully-developed economy.

During the early years, following the Chinese Communist Revolution, babies were encouraged, and the birth rate per woman of child-bearing age rose to around six.  In 1956, Premier Zhou Enlai encouraged women to voluntarily curb the number of babies they had, but that didn’t work.  So finally, Chairman Deng Xiaoping established a One-Child Policy in 1980, which carried harsh penalties for non-compliance.  Over time, the Chinese birth rate per woman declined from 4.4 to 1.64, which is now far too low to sustain a stable work force.

Such Social Engineering has been a considerable hindrance in maintaining a reliable labor pool, where one generation replaces another.  Currently, only one-quarter of China’s population has high-paying jobs in the cities, while the large majority of Chinese are still living and toiling in small, inefficient jobs, and barely existing above subsistence levels.  China also has some questionable policies, which seem intended to keep city dwellers tied to their home provinces. (But, that is beyond the scope of this post.)

There are three main problems, that I see, with the One-Child Policy: it has disrupted the natural rotation of generations into the labor pool, as a large portion of the current workforce is approaching retirement; although there were multiple exceptions to the One-Child Policy, they were not disseminated by regional and local officials; and parts of the policy—especially the Forced-Abortions—have caused anger and frustration on the part of many young couples.

Just last year, the Telegraph (UK) newspaper posted the linked article about a Chinese woman, who was eight-months pregnant, being forced by government officials to have an abortion, in order to save her husband’s job:
Additionally, consider the effect that forced-abortions, mostly involving girls, has had on the boy-girl ratio.  When the babies born today reach age 20, consider the potential side-effects of many frustrated men looking for wives.

Yes, China has pulled-off an economic miracle; but, it has also created a social disaster.  Educate the girls: yes, by all means!  But, leave the social engineering to Mother Nature.  Here’s my rough outline of what China needs to do:  build infrastructure out to the rural areas, including lower and medium-level factories; emphasize consumer spending in order to increase domestic consumption; totally eliminate the One-Child Policy: and pay bonuses to move young women, from one region to another, in order to massage the deficiency of women in some regions–or even consider recruiting some from other countries, such as Malaysia, Singapore or Taiwan.  China needs to clean-up its mess!

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When fellow bloggers visit my site, I generally visit theirs; and I have sometimes found them worth following, at least, from time-to-time.  Blogs that describe cooking, working for social causes, mental health issues among returning veterans, etc, can be both interesting and helpful.  Also, they are generally not in a position to be harmful to the reader.  Investment ideas, however, should clearly be presented—and read—as being for general information purposes only, and readers should be cautioned to seek their own specific advice!

No physician is going to treat you without having a detailed knowledge of your medical history—past, present and family.  Likewise, an experienced financial advisor would not offer investment advice without knowing about: your family situation; financial picture; risk-tolerance; long-term goals; etc.  But, when someone accepts even perceived “advice” on specific securities or financial strategies, from on-line blogs, TV “Informercials”, media articles, that information could truly be harmful.

Twenty years ago, “day-trading” was all the rage among investors who didn’t wish to learn before they plunged into the stock market.  They spent the day (sometimes giving-up their jobs) buying and selling the same stocks (and settling accounts before each day’s market close), without knowing much about the companies—just the ticker symbols!  Were they profitable, had experienced senior management, market leaders in their industries, etc?  Just don’t bother them now with the facts!  But, that craze has since gone the way of the Dutch Tulip Bubble of 1637.

Lastly, the Investment Marketplace today has changed significantly from when I joined it, in 1973.  Our financial institutions have changed, American Industry has shifted from manufacturing-to-service-to digital, there are many more public companies and investment vehicles, and the whole world has gone global! And,  don’t forget the significant jump in the volume and speed of information—credible or not—on a 24/7 basis.

This warrants a suitable comprehension of today’s marketplace within a proper historical context.  Some things have changed, and others have not.  But remember: there are no short-cuts to investing!

NOTE:  There are a number of investment-related posts on this blog. Just click on the Investing or Investment Primer tags (to the right), and scroll through.

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