Friday's Too Good Not To Share: July 17, 2020
Every Friday, I share other great content (with some added context) to dive into over the weekend.
In historic move, Asheville approves reparations for Black residents
This is a step in the right direction. I firmly believe that reparations are morally right and a matter of competitiveness for America. To quote the great philosopher Jay-Z, “You can’t heal what you never reveal.”
The unanimously passed resolution does not mandate direct payments. Instead it will make investments in areas where Black residents face disparities.
"The resulting budgetary and programmatic priorities may include but not be limited to increasing minority home ownership and access to other affordable housing, increasing minority business ownership and career opportunities, strategies to grow equity and generational wealth, closing the gaps in health care, education, employment and pay, neighborhood safety and fairness within criminal justice," the resolution reads.
The resolution calls on the city to create the Community Reparations Commission, inviting community groups and other local governments to join. It will be the commission's job to make concrete recommendations for programs and resources to be used.
Read more here.
— Editors Rant —
I’ll probably write a longer post on this one day in the future on why I think reparations are a matter of competitiveness for the country, but in short, Black Americans are an incredible investment class that have been woefully underfunded and denied the opportunity to fully innovate for 400 years. Also, as the global power games shift into a duopoly between the US and China, there is no way the US can promote democracy worldwide and been seen as the “good guy” when its current and historical record with regards to the treatment of its own US citizens are so poor. It would be a joke to tell other countries that democracy and free markets work when it’s being undermined today in the country that promotes it most. Lastly, trickle-down economics doesn’t work, never has worked, and will never work. The competitiveness of our country always will depend on the strength of our middle class and it is rapidly deteriorating (see studies on the rapidly increasing wealth gap). Reparations will change that as the average wealth for a Black family today is around $17,000.
More to come on this topic.
What I've Learned About Modern Monetary Theory
You should really subscribe to Tomasz Tunguz. He’s a VC at Redpoint and his newsletter is a good way to start seeing a bit more into the future.
Recently, he summarized the key points of Modern Monetary Theory (MMT). It has the same goal as our current economic policy today in that it aims to maximize employment and minimize inflation but MMT aims to achieve them in a different from Kenyesian policy. MMT can be summarized as:
First, rather than influencing the economy through interest rates, change taxes dynamically. When the economy is doing well, tax more. During recessions, tax less.
Second, the government guarantees everyone a job. That ensures the maximum employment rate. Empower the Executive Branch of the government to decide the projects these employees should pursue.
Third, finance these jobs by making new money: grow the deficit.
Fourth, tax the wealthy to pay for some of the difference, but maintain a significant deficit. MMT argues the deficit is the way governments create wealth for its citizens.
Interesting approach. I wonder how maintaining a deficit will work over time.
Quick read here.
PODCAST: ALL-IN WITH CHAMATH, JASON, SACKS & FRIEDBERG / E5: WHO's incompetence, kicking off Cold War II, China's grand plan, 100X'ing America's efficiency
Really good podcast episode with Chamath Palihapitiya, Jason Calacanis, David Sacks, and David Friedberg that gives perspective on the bubbling China and US Cold War. All of them are extremely successful Silicon Valley insiders, really smart, and work really hard to be informed.
I do want to note that I think they miss the mark on some things when it comes to race and social issues in America. That said, they offer great perspective on how the world works. Listening to them helps balance out worldview.
In this episode, they dive into the WHO, China, and thinking about grand ideas that would make America more competitive in the future.
Listen here.
Leave today better than yesterday ✌️.