Are You Smarter Than a Fifth Grader?
Research for Online Investors

by John Dalt

8/19/10

The Wall Street Journal ran an opinion article a month ago titled “Are You Smarter than a Fifth Grader?”  I just became aware of this yesterday, and upset we didn’t bring it to you earlier.

The article reveals why we have a problem in the U.S.  It goes all the way back to one of my old sayings, “Liberals FEEL, conservatives THINK.”  It may be true that some FEEL they are THINKING, but are not.

Zogby International surveyed 4835 American adults on basic economic questions, and then asked the respondent’s political leanings.  The results are not surprising to you, if a political discussion ever ended with puzzled looks after a moronic statement by a “feeler”.

There were only eight questions asked, such as “Minimum wage laws raise unemployment” and “Do rent controls lead to housing shortages” or “Mandatory licensing of professional services increases the prices of those services.”

How did you do?  There are no “Yes, but….” answers.  That is the excuse given for regulating and controlling.  Yes, but….”We want people to make a living wage.”     Try buying bread if you’re poor and unemployed.  Personally, I would rather have a job making a dollar an hour less.

Yes, but…”Landlords shouldn’t make so much, and we need affordable housing.”  So we end up with people that cannot move and property owners that cannot afford improvements.  That is ok; the city will cite them for substandard conditions.

Yes, but…”We don’t want people cutting hair that don’t know how.”  You have never met my barber, doctor, or lawyer!

Very Conservative respondents missed an average of 1.3 questions, progressive/very liberal missed 5.26 answers out of eight questions.  The author of the Wall Street Journal article, Daniel Klein, is a professor of economics and determines, “Realizing that many of our leaders and their constituents are economically unenlightened sheds light on the troubles that surround us.”

Does this guy teach high school economics, or work in Washington?   You can read the article and check your economic enlightenment against all eight questions, “Are you Smarter than a Fifth Grader?”  You might want to ask your congressman or senator one of these questions before voting.

The market got hit today, but it could have been much worse.  Initial Jobless Claims came in at the highest level in nine months; the Philadelphia Manufacturing Index dived into negative territory, as did the leading economic index.  There was NO good news today, a day without sunshine.

Light travels faster than sound. That's why some people appear bright until you hear them speak.---Larry the Cable Guy

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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