You Can't Pay Stupid Away

A topic of perpetual fascination for me is the frequent self-destruction of people who suddenly and unexpectedly acquire monetary wealth. This can happen a number of ways, but the fastest version is that of lottery winners.

I don't take pleasure in seeing and reading about their fall. Rather, it's the repeated warning that these folks send out to those of us who are listening that I appreciate. If you see Icarus fly high and then plummet as the sun melts his wax wings, over and over again, you'll probably remember not to do the same and never suffer the consequences of that mistake. I know for a fact that were I ever to find myself to be the owner of a winning lottery ticket that I absolutely would not end up like these folks do; my story would be a mirror opposite of theirs.

This particular article, Jackpot Winners Just As Likely To Go Bust contains a suggestion of a related problem, that of redistributive government programs:

The study has policy implications for governments deciding how to help heavily indebted people who are struggling during economic downturns, Hoekstra says. It appears the simplest solution -- giving them cash -- doesn't enhance longer-term financial stability, and only postpones, rather than avoids, bankruptcy. The lottery findings are consistent with a 2007 research paper that showed consumers initially used their 2001 federal rebate checks to reduce debt, but eventually debt returned to its pre-rebate level.

"Our research suggests that perhaps there is something more systematic about the types of people who get themselves into financial trouble -- and the appropriate policy prescription for helping them out is going to be considerably more complex than giving them additional resources," says Hoekstra. [emphasis mine]

This is precisely what governments everywhere generally do: just hand over the money. This is to hand out fish, not teach the recipients how to catch their own, so to speak. We subsidize dependency rather than teach self-reliance. The latter essentially has a fixed cost in that a person trained to be self-reliant eventually requires no additional expenditures to get up to speed, while the upkeep of the dependent is open-ended and grows in cost over time. Eventually more people end up riding in the cart than there are people pulling it, the productive are swallowed up by the non-producers, and then everyone falls.

Your Cash, Turned Into A Worthless Gas

I just got home from an overnight trip to Albion, Washington where I went to visit friends of mine and attend their daughter's first birthday party.

I used hypermiling techniques on my drive home again (I don't know right now how much fuel I ended up using for the round-trip yet, however). Many of my fellow drivers, especially folks driving vehicles bearing Idaho plates, obviously were not doing the same.

The fact that they were frequently far in excess of posted speed limits aside, I just have to wonder - do these people not understand that they're just burning their money? The poor driving habits I observe on a regular basis, most of which degrade the fuel economy of the vehicles these folks are in, don't really get them where they're going all that much faster and at a greater cost (not to mention that they are frequently just begging for a law enforcement officer to write them a speeding ticket).

You know who you are, and I just have to ask: is needlessly turning your hard earned money into carbon monoxide worth it?

It's Going To Be A Brewtiful Day!

There can't be good living where there there is not good drinking. -- Benjamin Franklin

Today I'm heading for the Northwest Best Brewfest with some of my coworkers. I like beer and beer likes me, so this should be a good day. There will be 40 selections available, served up in 4 ounce samples and full pints. I'm probably going to stick to samples though since their size makes it more likely that I'll survive long enough to try them all. The event lasts eight hours and I'm bringing cash equivalent to 172 ounces (by the event pricing). If I do the sensible thing and pace it at one pint per hour, this should go well (and leave me with cash for a big, greasy cheeseburger).

One brewery I'm happy to see on the list is a very micro microbrewer, the Laht Neppur Brewing Co., whose products I'm already familiar with. They are based in Waitsburg, Washington, a short twenty minute drive from where I live. I've sampled their creations at their brewery (and eaten some of their excellent pizza while I was at it).

Wish me and my liver luck!