Googins Newsletter
January 9th, 2025
What are these terms that inspire thoughts of morality and justice? Jimmy Carter, former U.S. President, died on the 29th of December 2024 at age 100. Like all presidents, he incurred criticism and I was happy to read an article by economist Brian Wesbury detailing the years of Carter’s presidency in a positive and balanced way. Here is the article from First Trust.
We have been hailing ownership of stocks for years. I see stock ownership as a democratic and enabling position an individual can employ and enjoy. Starting with a little you can build a lot. We see clients marveling at the return on investments over the years, moving clients to a place where their money provides them with income needed monthly to live comfortably. Little things like having the cash to buy a new refrigerator or car when needed replaces worry about having to pay monthly for something that went wrong. You cannot accumulate wealth without discipline to save but I am sure you know that.
As a senior Investor, my desire for growth and fairness has only grown. Our staff has been learning about protecting senior investors. It is a large and growing subject and I expect to spend next newsletter explaining more of this subject to you.
Right now I would like to summarize briefly two sides to our economy. We have added Professor Mark Skousen to our information gathering and bought an article he recently wrote to supply to you if you ask for it: “The Economics of Life Made Simple”.
People continue to worry and be strident on socialism vs capitalism. Socialism is seen as treating everyone equally whereas capitalism is seen as developing self interest. In 1914, the maker of the Model T, Henry Ford, shared profits with his workers by doubling their wages overnight to $5 a day. It improved the life of the average worker and gave him enough money to buy the product being produced: the automobile. Professor Skousen calls this “stakeholders philosophy” where democratic capitalism helps all workers and surely led to the establishment of the 401k plan, IRA, and other plans an individual uses to become a multi-millionaire like many employees of Walmart, Microsoft, and other companies.
The people first crossing the Atlantic to settle on this side had desire to control their lives but also observed a set of rules to protect others. A majority of American’s desire for more kindness and fairness in the world is notable.
The U.S. has become known for “easy, maybe luxurious living” and people want to gain entry to the United States. Most of us have worked hard and made careful decisions about spending and saving. I believe we are happy to welcome people who want to work to achieve the American Dream and happy to help those who are not yet completely able.
Is it innovation or is it more? I learned in the Skousen article that air pollution has been reduced by 97% in the LA area thanks to the invention of the catalytic converter in response to government regulations. Is our medical system good when it charges $130,000 for a heart bypass surgery but Singapore performs one for $18,000 and is ranked the number one healthiest country in the world in three categories? Can we, should we, learn from Singapore?
We can divide our car types into three categories suggested as “For the Poor, For the Middle Class, and For the Rich”? We can divide restaurants, motels, alcohol and more into similar groups. I laughed when I saw that Fords and Chevrolets and Kia are in the Poor or Cheap category and appreciated the point that many Americans can own vehicles. I hope a person driving a car or truck from the cheapest class feels lucky, not poor.
All those facts and ideas are in the article by Mark Skousen we are happy to send to you. We invite you to call us and continue in your journey to stay or become “rich” as your definition defines it. We believe everyone can do so and it is a fun and joyful experience.
Sincerely yours,
Louise Googins, President, Investment Advisor
Richard Martin, Investment Advisor
Michael Googins, Administrator
Kim Rankin, Accountant
Lynne Goldsmith, Investment Advisor
Dayton Hoffmann, Investment Advisor
Katie Gunderman, Intern