Book Reviews

Book Review: Physics of the Future

Physics of the FutureThis book has a misleading title, which may or may not be the author’s fault, but it is a valuable resource for considering the possible technological developments of the next several decades. Dr. Michio Kaku focuses a lot more on biology than physics, which is the one thing I found disappointing about the book. However, his coverage of nanotechnology makes a nice recovery.

Dr. Kaku’s realistic discussion of artificial intelligence presents the most important conclusion of his research in future technologies: we cannot recreate the human mind. He writes,

Since we are drowning in an ocean of information, the most precious commodity in modern society is wisdom. Without wisdom and insight, we are left to drift aimlessly and without purpose, with an empty, hollow feeling after the novelty of unlimited information wears off.

Much like Thomas L. Friedman in The World Is Flat, Dr. Kaku shows how the economy progresses from commodity capitalism to intellectual capitalism through processes like the Four Stages of Technology and Moore’s Law. Your mind is the one thing that disruptive innovation can never replace. So invest in yourself and train your brain by reading books. Physics of the Future is a good place to start!

Education · Personal Finance

10 Things I Learned From Teaching a Personal Finance Class

2016-2017 has been one of the craziest years in my teaching career. My principal texted me last July to ask me to teach Personal Financial Responsibility, a course encouraged, but not required, for high school students by the state of Indiana. I accepted the challenge and immediately delved into learning as much as I could to help my students. Nearly a year later, after teaching two sections of the course, I have learned a great deal about finance and about myself. In this article, I would like to share with you what I have learned this year.
Continue reading “10 Things I Learned From Teaching a Personal Finance Class” →

Essays · Personal Finance

The Case Against Emergency Funds

Most financial advisors will probably tell you to establish an emergency savings account. I personally am a fan of the emergency fund strategy, but it is different for every person, depending on what kinds of risks they have in their lives. I talk with my finance classes about different types of risk we are exposed to:

  • Concentration risk
  • Income risk
  • Inflation risk
  • Interest rate risk
  • Liquidity risk
  • Personal risk

Emergency savings can help with some of these risks, like a medical emergency or job loss, but they lose buying power to inflation, and they have an opportunity cost. The question is which of the risk factors above carries the most weight for you. If you work in a highly volatile industry, income risk may be a major concern. If you are a contracted teacher like me, maybe not so much. This is why it is important to “play devil’s advocate” and make arguments against conventional wisdom in finance. Let’s examine the argument against establishing the infamous emergency savings account. Continue reading “The Case Against Emergency Funds” →

Book Reviews

Book Review: The World Is Flat

The World Is FlatWhile it seems a little early to write a “history of the 21st century,” The World Is Flat is full of amazing insights that reshape the way we look at our world. What do the fall of the Berlin Wall, the Netscape IPO, and 9/11 all have in common? Thomas L. Friedman shows how these and other events are both causes and effects of the flattening of the world that has been on a fast track from 1989 to today.

There is no aspect of our lives that isn’t affected by the flattening trend. Most of these effects are good for us, but only if we understand them. 9/11 is an example of what happens when one group of people takes advantage of the flattening world for destructive purposes while another is unimaginative about its possibilities. The rise of eBay is an example of how a simple technology-based platform can open the business world to people who had previously been held back by geography, age, prejudice, or disability.

This book is an absolute must-read for every global citizen, whether they hold a political office, invest in emerging markets, or work on an assembly line. So many non-fiction books I read start off interesting and then become dull, as if the author had a great idea, but had trouble filling a few hundred pages with it. TWIF gets more and more interesting as you go, building up to a final chapter where Friedman offers a viable solution to create global peace, while simultaneously predicting the populist revolution that is happening today. It is clear that this book has not been read by enough people, and that needs to change!