Here is a humorous take on economic theory wrapped in a Christmas carol (h/t Daily Capitalist). The parody attacks the claims that wealth is created by consumption – a common misnomer preached by Keynesians like Paul Krugman. The reality is wealth is created through savings, investment and improvements in productivity. Think about it for a second. Does your personal wealth increase when you buy TVs, iPads, and clothing or when you invest in stocks, bonds, and real estate. Many Keynesians claim that on the individual level savings increases wealth, but it doesn’t work on a macro level. Huh? Isn’t the macro simply a compilation of the micro? Anyway, this will be enjoyed by those of you who are as boring as me and find economics fascinating (yes, I just said I find economics fascinating).
Kirk Kinder, CFP® is the Founder of Picket Fence Financial, a fee-only financial planning and investment management company dedicated to saving folks from Wall Street. Picket Fence Financial does this through a few different ways. One, our fee-only approach ensures our advice is tailored to our clients needs and not driven by commissions. Two, we minimize costs for clients by utilizing low cost Exchange Traded Funds (ETF) and aligning our internal operations to keep our company costs down (and passing this along to our clients). Third, we offer a la carte planning, which means our clients decide how they want to work with us. Rather than forcing clients into our model of planning, we offer hourly, retainer, or asset management options (or a combination thereof).
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