If you're in the right mood, there's something a little bit depressing about the subject of investing: how boring it is. An easy way to think about this is that if you make the maximum contribution to a 401(k) and IRA every year, for 20 years, at the end of that 20 years, you'll be rich. How rich you'll be depends on a lot of factors, but the fact you'll be rich doesn't depend … [Read more...] about Differences between non-retirement investment options
On the occasion of a new Federalist Society nominee to the Supreme Court, I thought it'd be worth explaining a set of issues that are going to repeatedly come before the Court in the coming decades, and explain a confusing set of terms that arises from those issues. The "Administrative" Procedure Act is about regulation, not administration The Administrative Procedure Act … [Read more...] about The rhetorical confusion between the administrative and regulatory states
The finance blogosphere has been ablaze the last week with Vanguard's announcement that they'll be eliminating trading fees on an enormous swathe of ETF's that currently cost $7 to buy and sell. Reducing transaction fees is an unalloyed good for investors, but I think there are some interesting additional consequences of the change to think about. What's happening On July 2, … [Read more...] about Thinking about Vanguard’s no-transaction-fee ETF announcement
Right-wing troll Ben Shapiro has a cliché he deploys whenever he's confronted by someone who disagrees with his particular brand of snarky malevolence: "facts don't care about your feelings." Of course, what Ben means is that his feelings don't care about your facts. If Ben feels you're wrong, then you're wrong regardless of the evidence you provide, and if Ben feels he's right … [Read more...] about Distinguishing between falsifiable and non-falsifiable claims
There is no cliché more beloved by chin-stroking observers of The West than the "sclerotic" labor markets of Western Europe. France is of course the most notoriously sclerotic labor market; but Spain hasn't dodged sclerosis either; and even our Anglo-Saxon brethren in the United Kingdom have a certain sclerotic tendency. There is a problem with this diagnosis, … [Read more...] about What if low US labor force participation is driven by low US labor standards?