Category Archives: money

It’s RRSP season in Canada. You may feel: why bother contributing? Read this then.

If you are daunted and dismayed with the impossibiity of saving for retirement, then read this.

A few thoughts:

  1. It’s written for Americans, but it works just as well for Canadians. (Replace 401K with RRSP).
  2. You may still not be able to retire, but the more you save, the more cushion you have for later.
  3. It may help you get to sleep at night when your brain starts saying: you are doomed to die old and poor!
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On Finland and UBI (Universal Basic Income)

Two links worth reading on Finland and UBI: this one and this one.

Essentially, Finland did a form of UBI and it didn’t work. Those for UBI will argue it was implemented poorly. Those against UBI will argue those people are purists and in fact UBI will never work.

I think there are limits to UBI, but the Finnish implementation was poor. I think it can be done better than that. Read the two pieces in the New York Times and decide for yourself.

Do higher taxes cause rich people to move?


No.

You will hear anecdotes of people doing so, but in reality:

While everyone seems aware of a handful of high-profile millionaires decamping to low-tax states for tax reasons, in truth few move in response to state tax rates. Young examined tax data from every millionaire in the United States over thirteen years. He found that, even over that long time horizon, only 0.3% of all millionaires, on net, moved to a lower tax state. A larger share—about 2.5 percent– move from one state to another each year, but most do not migrate for tax reasons.

That quote is from: What Republicans and Democrats Can Learn from “The Myth of Millionaire Tax Flight” | Tax Policy Center.

Remember this the next time someone is arguing that higher taxes will cause the well off to move elsewhere.

(Image via pexels.com)

On Bitcoin rivals


While all the hype might make you think that Bitcoin is  the only cryptocurrency, there are a number of alternatives out there and this piece in Fortune outlines what they are: 5 Bitcoin Rivals That Are Rapidly on the Rise.

While this piece lists a handful, I expect that there will be a flood of such things in the future as financial markets look to capitalize on this mixture of money and technology.

The Fortune piece is also not bad in summarizing some key facts about Bitcoin if you still find it hard to get your head around it.

I expect Bitcoin to crash to a much lower level, but I don’t see cryptocurrencies going away. Knowing more about them, especially because they could have a major impact on global economies, is worthwhile.

Where to buy and sell Bitcoin in Toronto


I don’t recommend participating in the madness that is Bitcoin, but if you want to and you live in Toronto, then check this out: How to buy Bitcoin in Toronto.

Caveat emptor.

 Ko-fi: a new way to raise money online

a small cup of coffee
There are many ways to raise money on line, from Patreon to Indiegogo to Kickstarter. A more modest way to raise money online is this site: Ko-fi. I think it is perfect for anyone wanting to share things with others in exchange for a modest amount of money (i.e. the cost of a cup of coffee, approximately). If you were looking for something like this for your site, I recommend you check it out.

By the way, if you want to check it out (and buy ME a coffee), here is my link. Thank you!

A cautionary tale of what low taxes and libertarianism brings

Amish women on the beach
There can be many lessons that can be drawn from the story here: The Rise and Fall of the ‘Freest Little City in Texas’

The ones I drew were

  • You get the society you pay for. In this case, the people of this part of Texas were unwilling to pay for anything, and they got nothing in return. It’s hard to believe this even needs to be said in this age, but apparently it does.
  • Even basic services cost money. That money comes from taxes or service fees.
  • Those services are expensive to pay for individually: it makes much more sense for people to pool their money (in the form of taxes),  to make it cheaper overall for everyone.
  • Taxes are only part of what makes a society, but a society that is based on money and that does not have taxes is no society at all.
  • Only a society that does not depend on money can get away without taxes. Typically those a tightly knit,  cohesive, pre-money communities that depend heavily on sharing and barter. These communities are more socialist or communist in nature as opposed to libertarian. More like an Amish community or hippie commune or a religious community of some form.
  • The best way to have a libertarian society is to have one of great abundance. Scarcity requires people to share and work together if they want to survive.

It’s a good story. Read it for yourself and draw your own conclusions.

(Photo above is Amish women on the beach)