Genius of Money The Interview with an Economist

The interview with Paul Mackay was a very interesting and enlightening read. I believe that the author, John Bloom, had many great questions for the Economist Mackay. They start by talking about what economics is and how it has changed throughout the years. Mackay explains that today it is the idea of managing our resources efficiently within the context of fulfilling human needs and wants. They continue to talk about how the world works around finance and investments. The smallest investments starting from pensions, mutual funds, bonds and stocks markets makes all the difference in society. The idea of investing in itself creates and adds economic value to those that would otherwise be valueless. Take it for example a patch of land a farmer is farming. That land either became more valuable due to the farmers work or the land itself became more valuable due to commercial needs or a new purpose. Mackay also explains that money can no longer go anywhere else and it is simply stuck. What he means is that there is no actual creation of meaningful value anymore. He believes that we must find a way to make the money investments transform into gift money, which then can create real value for people that do research for health, education, and etc. This idea of philanthropy and transformational change can be a huge impact if everyone were to invest. I really liked this interview because Mackay and John Bloom get into a deep conversation of what investing is in their opinions and why everyone should invest and gift for a better world.

Genius of Money Post 3

Most will agree that the wealthy always give and show some acts of philanthropy. The author begins to explain how amazing this act of generosity and social giving is. I believe it is true that the author explains how any activity or service without the purpose of other profit is an amazing promotion to human kind and society itself. If you look at it, even here at USC there are so many donations just towards education and the well being of students and their future. Not just education, but we can see an amazing amount of philanthropists donating to art institutions and institutions for health care research such as cancer, HIV, and other diseases. All of these are great examples of how philanthropy benefits and promotes growth in our society and the world as a whole.

The author also goes into the idea of risk and rewards. He states that, “In the world of risk and return, a gift is 100% risk, while the returns on the gift are immeasurable” (Bloom). This idea the author illustrates also seems to have a strong impact in todays society. It could be seen that, with a society that is constantly promoting activism and engagement, corporations, individuals, and especially the youth want to make a difference in the world. The author makes very valid points regarding charitable contributions and the the importance of philanthropy not just for furthering the development of our society but also the economy.

The Genius of Money Chapter 1

“The realms of spirit and religion, engaged as they are with the non-material world, nevertheless must find a way to work in a world that trades in money” (John Bloom). There has always been a duality between money and religion where religious followers are told to not be greedy and let go of material possession. Bloom argues that a third realm exists where both money and spirituality intertwined.

Using examples from the Bible and Stafford, Bloom says though taxes and interest rates are needed to share the costs of well-being the government provides (i.e. Medicare, Social Security, Public goods), religious institutions are exempt from these monetary policies. Jesus endorses taxes when a tax collector asks Peter for money, but tells him to instead pay the man with a fish, which will have a coin inside. On another occasion when approached by a tax collector himself, Jesus refuses to pay taxes because the coin is inscribed with Caesar’s name. Therefore, tax collectors should only collect what belongs to the state and what belongs to god, the state is not entitled to.

We agree that both money and spirituality are not mutually exclusive, but must work alongside one another for the well-being of individuals. If taxes are too high with not enough benefits, it affects our ability to give more because we don’t have that much to give.  If we do not have enough taxes, government projects will not operate sufficiently. Though taxes should also not be imposed on religious institutions since making profits is viewed as greed, money generated from government taxes should be donated to said institutions so that they may operate.