4: Notes from a Commonplace

3..Quotes from the Greats

Ernest Hemingway on measuring oneself:

"There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self."

Albert Camus on tyranny:

"The welfare of the people in particular has always been the alibi of tyrants, and it provides the further advantage of giving the servants of tyranny a good conscience."

James Clear on building personal momentum:

"Decide the type of person you want to be. Prove it to yourself with small wins."

2..Notes to Know

Howard Gardner's theory of multiple intelligences: Gardner's framework suggests that intelligence is not a singular ability but a range of independent intelligences. These range from linguistic and logical-mathematical to musical, spatial, and more, reflecting diverse abilities and potentials in individuals.

Resulting in Decision Making. The practice of measuring the quality a decision by the quality of its outcome. In "Thinking in Bets," author Annie Dukes argues that good outcomes can come from bad decisions, and vice versa. To improve decision making skills, it's important to focus on the process that led to that decision rather than outcomes that are often affected by uncontrollable factors.

1..Note on Inflation

Is it the President's fault or are corporations price gouging? Inflation is one of the central topics of the 2024 election year and potentially the decade. It's important to know what it really is, why it matters, and who's responsible.

What It Is

Inflation is the rate at which the general level of prices for goods/services is rising, which leads to a decrease in the purchasing power of money. This is driven by both supply/demand dynamics and monetary policy.

First, if you have demand for a good/service exceeding the supply of that good/service, prices will rise, which leads to inflation. This also applies to the production costs of a good/service. When it becomes more expensive to produce a good/service businesses pass the costs on to consumers, which leads to inflation.

Monetary policy also plays a crucial role. When central banks, like the Federal Reserve, print more money, the increased money supply can reduce the value of the currency, leading to higher prices, or inflation. This is because more money chasing the same amount of goods and services can push prices up.

Inflation is complex but the underlying driving concept is simple: when there is more of something, it tends to be less valuable. So when there is more money floating around, it buys you less.

The US government has printed trillions of dollars in just the last few years.

Why Inflation Matters

Inflation is like a tax. It's also regressive. Meaning it hurts those at the bottom of the economic latter the most.

Inflation raises asset prices (home values, stock prices go up), but for the relatively asset poor (most people) they don't benefit from this asset price increase. They only suffer the effects of decreased purchasing power. Your $100 from 2004 is now worth just $61. As asset prices increase, they become out of reach for those stuck earning wages that have decreasing purchasing power. This dynamic is increasingly responsible for creating an economy that is split between the have’s & the have-not’s.

Where Do We Point The Finger

Greed doesn’t cause companies to raise prices - they’re not “price-gouging.” Today, inflation is mostly caused by shortsighted monetary and fiscal policies rather than a sudden spike in corporate greed. Endless government spending, money printing, and misaligned economic incentives. This is not a single-administration issue. Congress & the presidents of the last 25 years have contributed to a rate of spending that is hard to mentally grasp (you can't comprehend a trillion dollars). They're all to blame (some more than others). The American government loves to get drunk on spending. And inflation is the hangover.

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