• Old Photos: Sowing The Seeds Of Financial Success

    This is an interesting set of photos depicting stock salesmen from Bache & CO. selling their wares to Kansas farmers on location.

    Life Magazine published these photos on Dec 8, 1958 in the article Grass Root Gold for Wall Street.


    Stock talk engrosses Mrs. Alice Watson, Salina, Kan. antiques dealer and Harry Nickelson of Bache
    Wall Street goes West, in persons of four salesmen from Bache & Co Salina, Kan office. Nattily standing in a winter wheat field are (from left) Bob Muir, Kelly Slaughter, Lyle Fackler, Harry Nichelson. They serve a growing list of farmer-investor, do not always dress so dudishly.

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  • On Income Redistribution

    The phrases “income redistribution” and “socialism” are thrown around by clueless people a lot these days. Any tax system that has a welfare component probably qualifies as income redistribution so the fact that it already exists in this country shouldn’t surprise anyone. At the other extreme is the Soviet system where the Government kept 100% of the GDP and then redistributed part of it back to the citizens in the form of wages, pensions, subsidized consumer goods prices, free education and health care, etc. In between, there are many countries that struck a certain balance between the socialist and free market economies. What constitutes a good balance is still open for discussion.

    Unlike many people who carefully counted other people’s money and decided that they have too much, I am a firm believer that in the market economy everyone it worth exactly what they earn and if they earn it, they should be able to keep their income and pay some reasonable amount of taxes to pay for the infrastructure, defense and certain social services.

    Granted, the Soviet Union looked great from the outside, every citizen was taken care of with free social services, 30-day vacations, free or cheap childcare, summer camps for the children, subsidized trips to resorts, cheap food and consumer goods but it was achieved by keeping everyone borderline poor, with many people living in medieval conditions, WWII-era equipped hospitals, ugly, ill-conceived, unusable merchandise that wasn’t always available. Add to that food shortages, long lines everywhere and inability to do anything without prior government approval and you may see why the life behind the Iron Curtain wasn’t so peachy. I think the weakest link in the Soviet system was their attempt to remove normal human greed from the economic equation. The ideal was, of course, that the people will get motivated because they loved their country. After that didn’t work out, various other means were tried out from the New Economic Policy to confiscations and labor camps. People realized that if they can’t achieve anything within the system they were going to do it outside of the system. Soviet Union had probably the biggest shadow economy ever known, as well as the most corrupt population in the world, where everyone from a clerk, to militiamen, to doctors, teachers and government officials accepted and oftentimes demanded bribes. But even if a certain Soviet citizen somehow managed to amass a fortune he would have a hard time spending it without attracting unwanted attention from the government or from fellow concerned citizens who were busy watching out for anyone stupid enough to get ahead. A very famous Soviet-era satirical book “The Little Golden Calf” featured a character who had a suitcase full of money but was forced to live without spending any of it, once a week reuniting with his wealth at the storage.

    On the other hand, Sweden is often cited as a triumph of the socialist system but even they had to adjust when it was realized that stifling entrepreneurship with high taxes led to the loss of employment and shrinkage of the GDP. Many would argue that Swedish system is not sustainable and is a myth, for an even-handed article you may want to read this one from Forbes. I think that a very important component of the Swedish model is their ability to control immigration. This way they concentrate on providing social services to their citizens.

    This country somehow managed to avoid all-out income redistribution by trying to keep the people content with what they earn, convincing them the opportunity awaits if you work hard and not take any shortcuts, and selling a tempting vision of the American Dream. Theoretically many people had the same opportunity as Steve Jobs, Warren Buffet or 2 guys who invented Google, but not everyone has talent, drive or desire to take the risk, all mixed with luck which are all needed to succeed. Short of winning the lottery, the best way to get one’s hands on other people’s money is to vote. There are many rationalizations on why this is fair or how paying taxes is patriotic and the right thing to do, but most of the people who say that made sure that they are not the ones affected, instead, just like the Soviet citizens in the past they will be making sure that the other people don’t get ahead.

    I am pretty sure that anything I say (or ever said) will not change anyone’s mind. Over $600 million invested in Obama’s candidacy will be repaid many-fold with the other people’s money, and to paraphrase the Communist Party’s statement “the eye is on the prize”. Make no mistake, while millions of people shed tears of joy at the rallies, someone is already calculating the profits. To be fair, the same exact process only with a more grotesque set of candidates is going on on the other side of the aisle. People will adapt, I can see a lot more taxpayers making $249,999.99 in the near future; why bother making that extra dollar if you only get to keep fifty cents. Many others will still keep doing what they are doing. Entrepreneurship doesn’t die, it just goes undercover and dedicates itself to undermining the system that’s trying to stifle it. I may sound alarmist, but 80 years ago people in Russia, the biggest grain exporter in the world wouldn’t believe that their children would be standing in bread lines.

    There is still a bright side to all of this. On the Election day it would be decided by a vote, instead of this:

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  • Nothing Still Rhymes With Minneapolis

    We only had one full day in Minneapolis so we had to make it count. Getting around the Twin Cities is easy, even considering horribly confusing twin I35 highways. On any highway you will probably find yourself to be the fastest driver in the city – the rest of the population competes in out-slowing each other and driving under the speed limit without actually coming to a complete stop.

    From the beautiful downtown Minneapolis…

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  • Ronald Reagan Tells Soviet Jokes

    I can testify that some of these jokes are pretty authentic. I grew up at a time when nothing like this would ever show up in print and people almost whispered these, as we called them, anecdotes to each other at home, at work or at school. Later on, thousands of these jokes were published in books and on the internet but the spice was gone, although some still remain pretty funny.

    httpvh://www.youtube.com/watch?v=mN3z3eSVG7A

    httpvh://www.youtube.com/watch?v=Xjv082CPz9g

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  • Where Rail Crosses Trail

    When the weather forecast for the weekend was published few days ago, I knew it was time to get out of town for few hours. Nothing clears out the mind like two hundred miles in rural Kansas on a first sunny and warm Sunday of the year. I started to look for a place to visit on the best Kansas travel resource but nothing grabbed my eye, so I just looked at the map and noticed a place called Admire, KS. I knew I had to go there and admire it.

    U.S. Route 56 leaves Olathe, passes through the armpits of Johnson County known as Gardner and Egderton and makes its way towards Oklahoma through the fields as far as the eye can see. Rolled down windows let the fresh air in and the smell of old hay, burning leaves and an occasional skunk filled up my lungs. I was on the way to Admire.
    By the way, have you ever been to Scranton, KS?

    Now you have.
    Much more interesting is the town of Burlingame down the road.

    Burlingame looks like a worn out Mayberry…

    …where Aunt B’s is the name of a restaurant.

    Aunt B’s niece is getting married next week, so you’ll have to eat elsewhere.

    Flower arrangements by Missy’s Flower Shop.

    Meat for the wedding is already stored in the Meat Locker.

    The Wedding announcement will be published in the cleverly named Newspaper (founded in 1863).

    On the guest list is the frequent customer and an old-timey lawyer…

    …who enjoys spending his lunch hour from 12 to 1 at Aunt B’s.

    Miss Jandi and her students will also be in attendance.

    Cheer-leading poodles are the only advertisement for her business.

    Church is conveniently located around the corner.

    Burlingame will have to wait for another visit, when I may be able to solve the mystery of the piano keys above the tire shop windows.


    I still had a long way to Admire.

    People in these parts still keep cannons in their front yards, just in case.

    Finally I was close to my goal. While taking this photo I drove into something that I can still smell on my car and can only describe as putrid.

    Admire was right in front of me.

    At least it was a god-fearing town.

    High school looks little over-sized for the population of 117 (0.56% Native American, 0.56% from other races, and 3.39% from two or more races. 1.13% of the population were Hispanic or Latino of any race.) That’s .65 of a Native American, must be handicapped or something.

    Every tall structure begs you to admire it.

    Last Chance Cafe is the best and the only pizza deal in town.

    Another water tower was built mainly to display the town’s name.

    I had a short drive to Emporia…

    …where Jesus Christ wanted me to stop and accept him. Sadly there was no parking.

    A friendly cock pointed the way home.

    I felt tired but refreshed at the same time. With my head cleared up I settled down on the couch thinking about the roads, small towns, open spaces and partial Native Americans.

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