Transfer Pricing Quotes

Nothing should be more obvious than that the business organism cannot function according to design when its most important “parameters of action”—wages, prices, interest—are transferred to the political sphere and there dealt with according to the requirements of the political game or, which sometimes is more serious still, according to the ideas of some planners.

I purposefully abstain from dates on this occasion,that very one may be liberty to fix their own,aware that the cure of unconquerable passions,and the transfer of unchanging attachments,must vary much as to time in different people.---I only entreat every body to believe that exactly at the time when it was quite natural that it should be so, and not a week earlier,Edmund did cease to care about Miss Crawford, and become anxious to marry Fanny,as Fanny herself could desire.

[Walmart]s largest innovation consists in getting rid of the central Fordist principle of paying the workers enough so that they can afford to buy what they manufacture. Instead, WalMart has pioneered the inverse principle: paying the workers so little that they cannot afford to shop anywhere other than at WalMart. It might even be said, not too hyperbolically, that WalMart has singlehandedly preserved the American economy from total collapse, in that their lowered prices are the only thing that has allowed millions of the “working poor” to retain the status of consumers at all, rather than falling into the “black hole” of total immiseration. WalMart is part and parcel of how the “new economy” has largely been founded upon transferring wealth from the less wealthy to the already-extremely-rich.

But when necessary and proper battle it out, necessary always wins.

We are about to be eaten by a dragon, you’re crawling on bleeding hands through bat droppings, and you’re worried about being proper?

For a split second I wonder what I am doing here on this battlefield, on the front line. I am a princess. I am soft and regal. I am quiet, forgotten Sorrowlynn, who never leaves her rooms. And yet I am so much more. I have the capacity to be anything. To be everything! This girl running to fight for the greater good is me. For the first time ever, I feel like I am living the life I was meant to be living all along.

Look at the evolution of the price of a kilogram of the drug, as it makes its way from the Andes to Los Angeles. To make that much cocaine, one needs somewhere in the neighborhood of 350 kilograms of dried coca leaves. Based on price data from Colombia obtained by Gallego and Rico, that would cost about $385. Once this is converted into a kilo of cocaine, it can sell in Colombia for $800. According to figures pulled together by Beau Kilmer and Peter Reuter at the RAND Corporation, an American think tank, that same kilo is worth $2,200 by the time it is exported from Colombia, and it has climbed to $14,500 by the time it is imported to the United States. After being transferred to a midlevel dealer, its price climbs to $19,500. Finally, it is sold by street-level dealers for $78,000.10 Even these soaring figures do not quite get across the scale of the markups involved in the cocaine business. At each of these stages, the drug is diluted, as traffickers and dealers “cut” the drug with other substances, to make it go further. Take this into account, and the price of a pure kilogram of cocaine at the retail end is in fact about $122,000.

I do not see how my agreeing to marry a scruffy old brute will have the power to keep a fire-breathing dragon locked beneath a mountain. And if I don’t agree to marry him, will I truly be fed to the dragon? That is savage, and inhumane, and crazy.

the consequences of scientific illiteracy are far more dangerous in our time than in any that has come before. It’s perilous and foolhardy for the average citizen to remain ignorant about global warming, say, or ozone depletion, air pollution, toxic and radioactive wastes, acid rain, topsoil erosion, tropical deforestation, exponential population growth. Jobs and wages depend on science and technology. If our nation can’t manufacture, at high quality and low price, products people want to buy, then industries will continue to drift away and transfer a little more prosperity to other parts of the world. Consider the social ramifications of fission and fusion power, supercomputers, data “highways,” abortion, radon, massive reductions in strategic weapons, addiction, government eavesdropping on the lives of its citizens, high-resolution TV, airline and airport safety, fetal tissue transplants, health costs, food additives, drugs to ameliorate mania or depression or schizophrenia, animal rights, superconductivity, morning-after pills, alleged hereditary antisocial predispositions, space stations, going to Mars, finding cures for AIDS and cancer. How can we affect national policy—or even make intelligent decisions in our own lives—if we don’t grasp the underlying issues?

Why the transfer of…decisions from the individuals and organizations directly involved – often depicted collectively and impersonally as “the market” – to third parties who pay no price for being wrong should be expected to produce better results for society at large is a question seldom asked, much less answered.

The age-old trick of transfer pricing Taking advantage of the fact that they operate in countries with different tax rates, TNCs [transnational corporations] have their subsidiaries over-charge or under-charge each other – sometimes grossly – so that profits are highest in those subsidiaries operating in countries with the lowest corporate tax rates. In this way, their global post-tax profit is maximized. A 2005 report by Christian Aid, the development charity, documents cases of under-priced exports like TV antennas from China at $0.40 apiece, rocket launchers from Bolivia at $40 and US bulldozers at $528 and over-priced imports such as German hacksaw blades at $5,485 each, Japanese tweezers at $4,896 and French wrenches at $1,089. The Starbucks and Google cases were different from those examples only in that they mainly involved ‘intangible assets’, such as brand licensing fees, patent royalties, interest charges on loans and in-house consultancy (e.g., coffee quality testing, store design), but the principle involved was the same. When TNCs evade taxes through transfer pricing, they use but do not pay for the collective productive inputs financed by tax revenue, such as infrastructure, education and R&D. This means that the host economy is effectively subsidizing TNCs.

Ideally, a fair and equitable society would regulate debt in line with the ability to be paid without pushing economies into depression. But when shrinking markets deepen fiscal deficits, creditors demand that governments balance their budgets by selling public monopolies. Once the land, water and mineral rights are privatized, along with transportation, communications, lotteries and other monopolies, the next aim is to block governments from regulating their prices or taxing financial and rentier wealth. The neo-rentier objective is threefold: to reduce economies to debt dependency, to transfer public utilities into creditor hands, and then to create a rent-extracting tollbooth economy. The financial objective is to block governments from writing down debts when bankers and bondholders over-lend. Taken together, these policies create a one-sided freedom for rentiers to create a travesty of the classical “Adam Smith” view of free markets. It is a freedom to reduce the indebted majority to a state of deepening dependency, and to gain wealth by stripping public assets built up over the centuries.

Universities today loudly proclaim their commitment to diversity. But in the meantime, democratization through public investment has been replaced by democratization through consumer credit, effectively transferring the costs of diversity back to the individual student and her family. The beauty of securitized credit is that it excludes no one a priori. By abstracting from class stratification in the present, it can accommodate all differences preemptively simply by pricing them at variable rates and deferring repayment to some barely imaginable point in the future. In principle, we all have access to a college education, no matter how much we or our parents earn. Yet, private credit does not merely obscure the effects of class; it also actively exacerbates inequality by forcing those without income or collateral to pay higher rates for the same service. When the long-term costs of credit begin to materialize and accumulate, students are once again confronted with the intractable resistances of class, race, and gender stratification. The divisions of family wealth reassert themselves with all their historical force.

If men create intelligent machines, or fantasize about them, it is either because they secretly despair of their own intelligence or because they are in danger of succumbing to the weight of a monstrous and useless intelligence which they seek to exorcize by transferring it to machines, where they can play with it and make fun of it. By entrusting this burdensome intelligence to machines we are released from any responsibility to knowledge, much as entrusting power to politicians allows us to disdain any aspiration of our own to power. If men dream of machines that are unique, that are endowed with genius, it is because they despair of their own uniqueness, or because they prefer to do without it - to enjoy it by proxy, so to speak, thanks to machines. What such machines offer is the spectacle of thought, and in manipulating them people devote themselves more to the spectacle of thought than to thought itself. It is not for nothing that they are described as 'virtual', for they put thought on hold indefinitely, tying its emergence to the achievement of a complete knowledge. The act of thinking itself is thus put off for ever. Indeed, the question of thought can no more be raised than the question of the freedom of future generations, who will pass through life as we travel through the air, strapped into their seats. These Men of Artificial Intelligence will traverse their own mental space bound hand and foot to their computers. Immobile in front of his computer, Virtual Man makes love via the screen and gives lessons by means of the teleconference. He is a physical - and no doubt also a mental cripple. That is the price he pays for being operational. Just as eyeglasses and contact lenses will arguably one day evolve into implanted prostheses for a species that has lost its sight, it is similarly to be feared that artificial intelligence and the hardware that supports it will become a mental prosthesis for a species without the capacity for thought. Artificial intelligence is devoid of intelligence because it is devoid of artifice.

I don’t know to what extent ignorance of science and mathematics contributed to the decline of ancient Athens, but I know that the consequences of scientific illiteracy are far more dangerous in our time than in any that has come before. It’s perilous and foolhardy for the average citizen to remain ignorant about global warming, say, or ozone depletion, air pollution, toxic and radioactive wastes, acid rain, topsoil erosion, tropical deforestation, exponential population growth. Jobs and wages depend on science and technology. If our nation can’t manufacture, at high quality and low price, products people want to buy, then industries will continue to drift away and transfer a little more prosperity to other parts of the world. Consider the social ramifications of fission and fusion power, supercomputers, data “highways,” abortion, radon, massive reductions in strategic weapons, addiction, government eavesdropping on the lives of its citizens, high-resolution TV, airline and airport safety, fetal tissue transplants, health costs, food additives, drugs to ameliorate mania or depression or schizophrenia, animal rights, superconductivity, morning-after pills, alleged hereditary antisocial predispositions, space stations, going to Mars, finding cures for AIDS and cancer.

A 1997 study of the consumer product design firm IDEO found that most of the company’s biggest successes originated as “combinations of existing knowledge from disparate industries.” IDEO’s designers created a top-selling water bottle, for example, by mixing a standard water carafe with the leak-proof nozzle of a shampoo container. The power of combining old ideas in new ways also extends to finance, where the prices of stock derivatives are calculated by mixing formulas originally developed to describe the motion of dust particles with gambling techniques. Modern bike helmets exist because a designer wondered if he could take a boat’s hull, which can withstand nearly any collision, and design it in the shape of a hat. It even reaches to parenting, where one of the most popular baby books—Benjamin Spock’s The Common Sense Book of Baby and Child Care, first published in 1946—combined Freudian psychotherapy with traditional child-rearing techniques. “A lot of the people we think of as exceptionally creative are essentially intellectual middlemen,” said Uzzi. “They’ve learned how to transfer knowledge between different industries or groups. They’ve seen a lot of different people attack the same problems in different settings, and so they know which kinds of ideas are more likely to work.” Within sociology, these middlemen are often referred to as idea or innovation brokers. In one study published in 2004, a sociologist named Ronald Burt studied 673 managers at a large electronics company and found that ideas that were most consistently ranked as “creative” came from people who were particularly talented at taking concepts from one division of the company and explaining them to employees in other departments. “People connected across groups are more familiar with alternative ways of thinking and behaving,” Burt wrote. “The between-group brokers are more likely to express ideas, less likely to have ideas dismissed, and more likely to have ideas evaluated as valuable.” They were more credible when they made suggestions, Burt said, because they could say which ideas had already succeeded somewhere else.

The federal government could make a Rolls Royce affordable for every American, but we would not be a richer country as a result. We would in fact be a much poorer country, because of all the vast resources transferred from other economic activities to subsidize an extravagant luxury. [...] To have politicians arbitrarily change the price tags, so that prices no longer represent the real costs, is to defeat the whole purpose [of an economy: to make trade-offs, with the prices of a market economy representing the costs of producing things]. Reality doesn't change when the government changes price tags. Talk about "bringing down health care costs" is not aimed at the costly legal environment in which medical science operates, or other sources of needless medical costs. It is aimed at price control, which hides costs rather than reducing them. [...] Whether in France during the 1790s, the Soviet Union after the Bolshevik revolution, or in newly independent African nations during the past generation, governments have imposed artificially low prices on food. In each case, this led to artificially low supplies of food and artificially high levels of hunger. People who complain about the "prohibitive" cost of housing, or of going to college, for example, fail to understand that the whole point of costs is to be prohibitive. [...] The idea [that "basic necessities" should be a "right"] certainly sounds nice. But the very fact that we can seriously entertain such a notion, as if we were God on the first day of creation, instead of mortals constrained by the universe we find in place, shows the utter unreality of failing to understand that we can only make choices among alternatives actually available. [...] Trade-offs [as opposed to solutions] remain inescapable, whether they are made through a market or through politics. The difference is that price tags present all the trade-offs simultaneously, while political 'affordability' policies arbitrarily fix on whatever is hot at the moment. That is why cities have been financing all kinds of boondoggles for years, while their bridges rusted and the roadways crumbled.

if consumer demand should increase for the goods or services of any private business, the private firm is delighted; it woos and welcomes the new business and expands its operations eagerly to fill the new orders. Government, in contrast, generally meets this situation by sourly urging or even ordering consumers to “buy” less, and allows shortages to develop, along with deterioration in the quality of its service. Thus, the increased consumer use of government streets in the cities is met by aggravated traffic congestion and by continuing denunciations and threats against people who drive their own cars. The New York City administration, for example, is continually threatening to outlaw the use of private cars in Manhattan, where congestion has been most troublesome. It is only government, of course, that would ever think of bludgeoning consumers in this way; it is only government that has the audacity to “solve” traffic congestion by forcing private cars (or trucks or taxis or whatever) off the road. According to this principle, of course, the “ideal” solution to traffic congestion is simply to outlaw all vehicles! But this sort of attitude toward the consumer is not confined to traffic on the streets. New York City, for example, has suffered periodically from a water “shortage.” Here is a situation where, for many years, the city government has had a compulsory monopoly of the supply of water to its citizens. Failing to supply enough water, and failing to price that water in such a way as to clear the market, to equate supply and demand (which private enterprise does automatically), New York’s response to water shortages has always been to blame not itself, but the consumer, whose sin has been to use “too much” water. The city administration could only react by outlawing the sprinkling of lawns, restricting use of water, and demanding that people drink less water. In this way, government transfers its own failings to the scapegoat user, who is threatened and bludgeoned instead of being served well and efficiently. There has been similar response by government to the ever-accelerating crime problem in New York City. Instead of providing efficient police protection, the city’s reaction has been to force the innocent citizen to stay out of crime-prone areas. Thus, after Central Park in Manhattan became a notorious center for muggings and other crime in the night hours, New York City’s “solution” to the problem was to impose a curfew, banning use of the park in those hours. In short, if an innocent citizen wants to stay in Central Park at night, it is he who is arrested for disobeying the curfew; it is, of course, easier to arrest him than to rid the park of crime. In short, while the long-held motto of private enterprise is that “the customer is always right,” the implicit maxim of government operation is that the customer is always to be blamed.

Inefficiency. A centralized financial system has many inefficiencies. Perhaps the most egregious example is the credit card interchange rate that causes consumers and small businesses to lose up to 3 percent of a transaction's value with every swipe due to the payment network oligopoly's pricing power. Remittance fees are 5–7 percent. Time is also wasted in the two days it takes to “settle” a stock transaction (officially transfer ownership). In the Internet age, this seems utterly implausible. Other inefficiencies include costly (and slow) transfer of funds, direct and indirect brokerage fees, lack of security, and the inability to conduct microtransactions, many of which are not obvious to users. In the current banking system, deposit interest rates remain very low and loan rates high because banks need to cover their brick-and-mortar costs. The insurance industry provides another example.

The Blood player could acquire a Rose item, but only by handing over an atrocity, thus leaving himself with less ammunition and the Rose player with more. If he was a skilful player he could attack the Rose side by means of the atrocities in his possession, loot the human achievement, and transfer it to his side of the board. The player who managed to retain the most human achievements by Time’s Up was the winner. With points off, naturally, for achievements destroyed through his own error and folly and cretinous play. The exchange rates – one Mona Lisa equalled Bergen-Belsen, one Armenian genocide equalled the Ninth Symphony plus three Great Pyramids – were suggested, but there was room for haggling. To do this you needed to know the numbers – the total number of corpses for the atrocities, the latest open-market price for the artworks; or, if the artworks had been stolen, the amount paid out by the insurance policy. It was a wicked game.

I know that the consequences of scientific illiteracy are far more dangerous in our time than in any that has come before. It’s perilous and foolhardy for the average citizen to remain ignorant about global warming, say, or ozone depletion, air pollution, toxic and radioactive wastes, acid rain, topsoil erosion, tropical deforestation, exponential population growth. Jobs and wages depend on science and technology. If our nation can’t manufacture, at high quality and low price, products people want to buy, then industries will continue to drift away and transfer a little more prosperity to other parts of the world. Consider the social ramifications of fission and fusion power, supercomputers, data “highways,” abortion, radon, massive reductions in strategic weapons, addiction, government eavesdropping on the lives of its citizens, high-resolution TV, airline and airport safety, fetal tissue transplants, health costs, food additives, drugs to ameliorate mania or depression or schizophrenia, animal rights, superconductivity, morning-after pills, alleged hereditary antisocial predispositions, space stations, going to Mars, finding cures for AIDS and cancer. How can we affect national policy—or even make intelligent decisions in our own lives—if we don’t grasp the underlying issues? As I write, Congress is dissolving its own Office of Technology Assessment—the only organization specifically tasked to provide advice to the House and Senate on science and technology. Its competence and integrity over the years have been exemplary. Of the 535 members of the U.S. Congress, rarely in the twentieth century have as many as one percent had any significant background in science. The last scientifically literate President may have been Thomas Jefferson.* So how do Americans decide these matters? How do they instruct their representatives? Who in fact makes these decisions, and on what basis? —

To purchase a Volkswagen, customers were required to make a weekly deposit of at least 5 Reichsmarks into a DAF account on which they received no interest. Once the account balance had reached 750 Reichsmarks, the customer was entitled to delivery of a VW. The DAF meanwhile achieved an interest saving of 130 Reichsmarks per car. In addition, purchasers of the VW were required to take out a two-year insurance contract priced at 200 Reichsmarks. The VW savings contract was non-transferable, except in case of death, and withdrawal from the contract normally meant the forfeit of the entire sum deposited. Remarkably, 270,000 people signed up to these contracts by the end of 1939 and by the end of the war the number of VW-savers had risen to 340,000. In total, the DAF netted 275 million Reichsmarks in deposits. But not a single Volkswagen was ever delivered to a civilian customer in the Third Reich. After 1939, the entire output was reserved for official uses of various kinds. Most of Porsche’s half-finished factory was turned over to military production. The 275 million Reichsmarks deposited by the VW savers were lost in the post-war inflation. After a long legal battle, VW’s first customers received partial compensation only in the 1960s.

In many societies women were simply the property of men, most often their fathers, husbands or brothers. Rape, in many legal systems, falls under property violation – in other words, the victim is not the woman who was raped but the male who owns her. This being the case, the legal remedy was the transfer of ownership – the rapist was required to pay a bride price to the woman’s father or brother, upon which she became the rapist’s property. The Bible decrees that ‘If a man meets a virgin who is not betrothed, and seizes her and lies with her, and they are found, then the man who lay with her shall give to the father of the young woman fifty shekels of silver, and she shall be his wife’ (Deuteronomy 22:28–9). If a husband raped his own wife, he had committed no crime. In fact, the idea that a husband could rape his wife was an oxymoron. To be a husband was to have full control of your wife’s sexuality. To say that a husband ‘raped’ his wife was as illogical as saying that a man stole his own wallet. Such thinking was not confined to the ancient Middle East. As of 2006, there were still fifty-three countries where a husband could not be prosecuted for the rape of his wife. Even in Germany, rape laws were amended only in 1997 to create a legal category of marital rape.

Nietzsche’s On the Genealogy of Morals appeared in 1887. In it, he begins with an argument that might well have been taken directly from Adam Smith—but he takes it a step further than Smith ever dared to, insisting that not just barter, but buying and selling itself, precede any other form of human relationship. The feeling of personal obligation, he observes, has its origin in the oldest and most primitive personal relationship there is, in the relationship between seller and buyer, creditor and debtor. Here for the first time one person moved up against another person, here an individual measured himself against another individual. We have found no civilization still at such a low level that something of this relationship is not already perceptible. To set prices, to measure values, to think up equivalencies, to exchange things—that preoccupied man’s very first thinking to such a degree that in a certain sense it’s what thinking itself is. Here the oldest form of astuteness was bred; here, too, we can assume are the first beginnings of man’s pride, his feeling of pre-eminence in relation to other animals. Perhaps our word “man” (manas) continues to express directly something of this feeling of the self: the human being describes himself as a being which assesses values, which values and measures, as the “inherently calculating animal.” Selling and buying, together with their psychological attributes, are even older than the beginnings of any form of social organizations and groupings; out of the most rudimentary form of personal legal rights the budding feeling of exchange, contract, guilt, law, duty, and compensation was instead first transferred to the crudest and earliest social structures (in their relationships with similar social structures), along with the habit of comparing power with power, of measuring, of calculating

The first cut at the problem—the simplest but still eye-opening—is to ask how much income would have to be transferred from rich countries to poor countries to lift all of the world’s extreme poor to an income level sufficient to meet basic needs. Martin Ravallion and his colleagues on the World Bank’s poverty team have gathered data to address this question, at least approximately. The World Bank estimates that meeting basic needs requires $1.08 per day per person, measured in 1993 purchasing-power adjusted prices. Using household surveys, the Ravallion team has calculated the numbers of poor people around the world who live below that threshold, and the average incomes of those poor. According to the Bank’s estimates, 1.1 billion people lived below the $1.08 level as of 2001, with an average income of $0.77 per day, or $281 per year. More important, the poor had a shortfall relative to basic needs of $0.31 per day ($1.08 minus $0.77), or $113 per year. Worldwide, the total income shortfall of the poor in 2001 was therefore $113 per year per person multiplied by 1.1 billion people, or $124 billion. Using the same accounting units (1993 purchasing power adjusted U.S. dollars), the income of the twenty-two donor countries of the Development Assistance Committee (DAC) in 2001 was $20.2 trillion. Thus a transfer of 0.6 percent of donor income, amounting to $124 billion, would in theory raise all 1.1 billion of the world’s extreme poor to the basic-needs level. Notably, this transfer could be accomplished within the 0.7 percent of the GNP target of the donor countries. That transfer would not have been possible in 1980, when the numbers of the extreme poor were larger (1.5 billion) and the incomes of the rich countries considerably smaller. Back in 1981, the total income gap was around $208 billion (again, measured in 1993 purchasing power prices) and the combined donor country GNP was $13.2 trillion. Then it would have required 1.6 percent of donor income in transfers to raise the extreme poor to the basic-needs level.

the bourgeoisie wanted to insert something more than just the negative law of “this is not yours” between the worker and the production apparatus he had in his hands. A supplementary code was needed that complements this law and gets it to work: the worker himself had to be moralized. When he is told: “You are only your labor-power and I have paid the market price for it,”‡ and when so much wealth is put in his hands, it is necessary to inject into the relationship between the worker and what he is working on a whole series of obligations and constraints that overlay the law of wages, which is apparently the simple law of the market.§ The wage contract must be accompanied by a coercion that is like its validity clause: the working class must be “regenerated,” “moralized.” Thus the transfer of the penitentiary takes place with one social class applying it to another: it is in this class relationship between the bourgeoisie and the proletariat that the condensed and remodeled penitentiary system begins to function; it will be a political instrument of the control and maintenance of relations of production. Fourth, something more is needed for this supplementary code to function effectively and for the delinquent actually to appear as a social enemy: the actual separation of delinquents from non-delinquents within those lower strata practicing illegalism. The great continuous mass of economico-political illegalism, going from common law crime to political revolt, must be broken up and the purely delinquent must be placed on one side, and those free of delinquency, who may be called non-delinquent, on the other. Thus, the bourgeoisie has no great wish to suppress delinquency.18 The main objective of the penal system is breaking this continuum of lower-class illegalism and the organization of a world of delinquency. There are two instruments for this. On the one hand, an ideological instrument: the theory of the delinquent as social enemy. This is no longer someone who struggles against the law, who wishes to evade power, but someone who is at war with every member of society. And the suddenly monstrous face the criminal assumes at the end of the eighteenth century, in literature and in penal theorists, corresponds to this need to break lower-class illegalism

How exactly the debt should be funded was to be the most inflammatory political issue. During the Revolution, many affluent citizens had invested in bonds, and many war veterans had been paid with IOUs that then plummeted in price under the confederation. In many cases, these upright patriots, either needing cash or convinced they would never be repaid, had sold their securities to speculators for as little as fifteen cents on the dollar. Under the influence of his funding scheme, with government repayment guaranteed, Hamilton expected these bonds to soar from their depressed levels and regain their full face value. This pleasing prospect, however, presented a political quandary. If the bonds appreciated, should speculators pocket the windfall? Or should the money go to the original holders—many of them brave soldiers—who had sold their depressed government paper years earlier? The answer to this perplexing question, Hamilton knew, would define the future character of American capital markets. Doubtless taking a deep breath, he wrote that “after the most mature reflection” about whether to reward original holders and punish current speculators, he had decided against this approach as “ruinous to public credit.”25 The problem was partly that such “discrimination” in favor of former debt holders was unworkable. The government would have to track them down, ascertain their sale prices, then trace all intermediate investors who had held the debt before it was bought by the current owners—an administrative nightmare. Hamilton could have left it at that, ducking the political issue and taking refuge in technical jargon. Instead, he shifted the terms of the debate. He said that the first holders were not simply noble victims, nor were the current buyers simply predatory speculators. The original investors had gotten cash when they wanted it and had shown little faith in the country’s future. Speculators, meanwhile, had hazarded their money and should be rewarded for the risk. In this manner, Hamilton stole the moral high ground from opponents and established the legal and moral basis for securities trading in America: the notion that securities are freely transferable and that buyers assume all rights to profit or loss in transactions. The knowledge that government could not interfere retroactively with a financial transaction was so vital, Hamilton thought, as to outweigh any short-term expediency. To establish the concept of the “security of transfer,” Hamilton was willing, if necessary, to reward mercenary scoundrels and penalize patriotic citizens. With this huge gamble, Hamilton laid the foundations for America’s future financial preeminence.

Arsenal hasn’t been a great soccer club lately, but it has been a good business. This is what a soccer club run as a business looks like: high ticket prices, little desire to win trophies, and respectable profits. If FFP takes force, and other big clubs end up being run like Arsenal rather than like Abramovich’s Chelsea, then we predict:        •   A fall in players’ wages        •   A fall in transfer fees, which would mean less money trickling down from big clubs to the rest        •   A rise in club profits, which would mean more money being taken out of the game by people like the Glazers

Fines, often in the thousands of dollars, are assessed against many prisoners when they are sentenced. There are twenty-two fines that can be imposed in New Jersey, including the Violent Crime Compensation Assessment (VCCA), the Law Enforcement Officers Training & Equipment Fund (LEOT), and Extradition Costs (EXTRA). The state takes a percentage each month out of a prisoner’s wages to pay for penalties. It can take decades to pay fines. Some 10 million Americans owe $50 billion in fees and fines because of their arrest or imprisonment, according to a 2015 report by the Brennan Center. If a prisoner who is fined $10,000 at sentencing relies solely on a prison salary, he or she will owe about $4,000 after making monthly payments for twenty-five years. Prisoners often leave prison in debt to the state. And if they cannot continue to make regular payments—difficult because of high unemployment among ex-felons—they are sent back to prison. High recidivism is part of the design. Most of the prison functions once handled by governments have become privatized. Corporations run prison commissaries and, since the prisoners have nowhere else to shop, often jack up prices by as much as 100 percent. Corporations have taken over the phone systems and grossly overcharge prisoners and their families. They demand exorbitant fees for money transfers from families to prisoners. And corporations, with workshops inside prisons, pay little more than a dollar a day to prison laborers. Food and merchandise vendors, construction companies, laundry services, uniform companies, prison equipment vendors, cafeteria services, manufacturers of pepper spray, body armor, and the array of medieval-looking instruments used for the physical control of prisoners, and a host of other contractors feed like jackals off prisons. Prisons, in America, are big business.

Today is my sixteenth birthday. I am wearing a gown I can barely walk in, my artfully styled hair is giving me a headache, and I feel like I am going to throw up.

The government would have to track them down, ascertain their sale prices, then trace all intermediate investors who had held the debt before it was bought by the current owners—an administrative nightmare. Hamilton could have left it at that, ducking the political issue and taking refuge in technical jargon. Instead, he shifted the terms of the debate. He said that the first holders were not simply noble victims, nor were the current buyers simply predatory speculators. The original investors had gotten cash when they wanted it and had shown little faith in the country’s future. Speculators, meanwhile, had hazarded their money and should be rewarded for the risk. In this manner, Hamilton stole the moral high ground from opponents and established the legal and moral basis for securities trading in America: the notion that securities are freely transferable and that buyers assume all rights to profit or loss in transactions. The knowledge that government could not interfere retroactively with a financial transaction was so vital, Hamilton thought, as to outweigh any short-term expediency. To establish the concept of the “security of transfer,” Hamilton was willing, if necessary, to reward mercenary scoundrels and penalize patriotic citizens. With this huge gamble, Hamilton laid the foundations for America’s future financial preeminence. As his report progressed, Hamilton tiptoed through a field seeded thickly with deadly political traps. The next incendiary issue was that some debt was owed by the thirteen states, some by the federal government. Hamilton decided to consolidate all the debt into a single form: federal

Maruti was called upon to take a difficult decision soon after the first bookings had been made. The pick-up truck, a purely commercial vehicle that was part of the original project along with the 800 and the van, got a very poor response—bookings of just 2,000. In the project report, the pick-up truck was expected to account for 20 per cent of total production. The booking response showed that the customers did not want this vehicle, and manufacturing it in small volumes would not be viable. The company realized it had made a serious error of judgement in not recognizing that petrol-driven commercial vehicles could never compete with diesel-driven ones, as the government-determined price of diesel was much lower than petrol. SMC had estimated that the pick-up truck would be very successful because of good experience in other Asian countries. In Pakistan, it was used for rural transport, after being fitted with a canvas top, and sold in large numbers. However, India had a vehicle called the Tempo, which carried a load slightly more than the pick-up truck and ran on diesel. The highly value-conscious Indian customers immediately realized that the pick-up truck would always lose out to the Tempo, because of the Tempo’s lower operating costs. Realizing that the truck would be a failure, Maruti decided to drop its production and to write off the costs incurred till then in tooling and other related activities. This experience was a reminder to Maruti on the importance of correctly assessing the behaviour of Indian customers, and the dangers of transferring experience of other countries to India, without careful examination.

Economics is a notoriously complicated subject. To make things easier, let’s imagine a simple example. Samuel Greedy, a shrewd financier, founds a bank in El Dorado, California. A. A. Stone, an up-and-coming contractor in El Dorado, finishes his first big job, receiving payment in cash to the tune of $1 million. He deposits this sum in Mr Greedy’s bank. The bank now has $1 million in capital. In the meantime, Jane McDoughnut, an experienced but impecunious El Dorado chef, thinks she sees a business opportunity – there’s no really good bakery in her part of town. But she doesn’t have enough money of her own to buy a proper facility complete with industrial ovens, sinks, knives and pots. She goes to the bank, presents her business plan to Greedy, and persuades him that it’s a worthwhile investment. He issues her a $1 million loan, by crediting her account in the bank with that sum. McDoughnut now hires Stone, the contractor, to build and furnish her bakery. His price is $1,000,000. When she pays him, with a cheque drawn on her account, Stone deposits it in his account in the Greedy bank. So how much money does Stone have in his bank account? Right, $2 million. How much money, cash, is actually located in the bank’s safe? Yes, $1 million. It doesn’t stop there. As contractors are wont to do, two months into the job Stone informs McDoughnut that, due to unforeseen problems and expenses, the bill for constructing the bakery will actually be $2 million. Mrs McDoughnut is not pleased, but she can hardly stop the job in the middle. So she pays another visit to the bank, convinces Mr Greedy to give her an additional loan, and he puts another $1 million in her account. She transfers the money to the contractor’s account. How much money does Stone have in his account now? He’s got $3 million. But how much money is actually sitting in the bank? Still just $1 million. In fact, the same $1 million that’s been in the bank all along. Current US banking law permits the bank to repeat this exercise seven more times. The contractor would eventually have $10 million in his account, even though the bank still has but $1 million in its vaults. Banks are allowed to loan $10 for every dollar they actually possess, which means that 90 per cent of all the money in our bank accounts is not covered by actual coins and notes.2 If all of the account holders at Barclays Bank suddenly demand their money, Barclays will promptly collapse (unless the government steps in to save it). The same is true of Lloyds, Deutsche Bank, Citibank, and all other banks in the world. It sounds like a giant Ponzi scheme, doesn’t it? But if it’s a fraud, then the entire modern economy is a fraud. The fact is, it’s not a deception, but rather a tribute to the amazing abilities of the human imagination. What enables banks – and the entire economy – to survive and flourish is our trust in the future. This trust is the sole backing for most of the money in the world.

father—his name is Brockman—was working on developing a chip for mind-body transfers.

It may be argued that the host country should not complain about transfer pricing, because, without the foreign direct investment in question, the taxable income would not have been generated in the first place. But this is a disingenuous argument. All firms need to use productive resources provided by government with taxpayers' money (e.g., roads, the telecommunications network, workers who have received publicly funded education and training). So, if the TNC subsidiary is not paying its 'fair share' of tax, it is effectively free-riding on the host country.

Provisions that set forth what the contract is about, referred to herein as the "operative provisions." For example, the operative provisions of a contract to sell the assets of a business would include a description of the assets, the calculation and method of payment of the purchase price, and the mechanics of transferring the assets. An asset sale contract containing only these operative provisions would be a very short document, legally enforceable, but not addressing many of the other important issues that buyers and sellers care about. What

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Rivalry is especially destructive to profitability if it gravitates solely to price because price competition transfers profits directly from an industry to its customers. P.32

In many societies women were simply the property of men, most often their fathers, husbands or brothers. Rape, in many legal systems, falls under property violation – in other words, the victim is not the woman who was raped but the male who owns her. This being the case, the legal remedy was the transfer of ownership – the rapist was required to pay a bride price to the woman’s father or brother, upon which she became the rapist’s property. The Bible decrees that ‘If a man meets a virgin who is not betrothed, and seizes her and lies with her, and they are found, then the man who lay with her shall give to the father of the young woman fifty shekels of silver, and she shall be his wife’ (Deuteronomy 22:28–9). The ancient Hebrews considered this a reasonable arrangement. Raping a woman who did not belong to any man was not considered a crime at all, just as picking up a lost coin on a busy street is not considered theft. And if a husband raped his own wife, he had committed no crime. In fact, the idea that a husband could rape his wife was an oxymoron. To be a husband was to have full control of your wife’s sexuality. To say that a husband ‘raped’ his wife was as illogical as saying that a man stole his own wallet. Such thinking was not confined to the ancient Middle East. As of 2006, there were still fifty-three countries where a husband could not be prosecuted for the rape of his wife. Even in Germany, rape laws were amended only in 1997 to create a legal category of marital rape.

David and Neil were MBA students at the Wharton School when the cash-strapped David lost his eyeglasses and had to pay $700 for replacements. That got them thinking: Could there be a better way? Neil had previously worked for a nonprofit, VisionSpring, that trained poor women in the developing world to start businesses offering eye exams and selling glasses that were affordable to people making less than four dollars a day. He had helped expand the nonprofit’s presence to ten countries, supporting thousands of female entrepreneurs and boosting the organization’s staff from two to thirty. At the time, it hadn’t occurred to Neil that an idea birthed in the nonprofit sector could be transferred to the private sector. But later at Wharton, as he and David considered entering the eyeglass business, after being shocked by the high cost of replacing David’s glasses, they decided they were out to build more than a company—they were on a social mission as well. They asked a simple question: Why had no one ever sold eyeglasses online? Well, because some believed it was impossible. For one thing, the eyeglass industry operated under a near monopoly that controlled the sales pipeline and price points. That these high prices would be passed on to consumers went unquestioned, even if that meant some people would go without glasses altogether. For another, people didn’t really want to buy a product as carefully calibrated and individualized as glasses online. Besides, how could an online company even work? David and Neil would have to be able to offer stylish frames, a perfect fit, and various options for prescriptions. With a $2,500 seed investment from Wharton’s Venture Initiation Program, David and Neil launched their company in 2010 with a selection of styles, a low price of $95, and a hip marketing program. (They named the company Warby Parker after two characters in a Jack Kerouac novel.) Within a month, they’d sold out all their stock and had a 20,000-person waiting list. Within a year, they’d received serious funding. They kept perfecting their concept, offering an innovative home try-on program, a collection of boutique retail outlets, and an eye test app for distance vision. Today Warby Parker is valued at $1.75 billion, with 1,400 employees and 65 retail stores. It’s no surprise that Neil and David continued to use Warby Parker’s success to deliver eyeglasses to those in need. The company’s Buy a Pair, Give a Pair program is unique: instead of simply providing free eyeglasses, Warby Parker trains and equips entrepreneurs in developing countries to sell the glasses they’re given. To date, 4 million pairs of glasses have been distributed through Warby Parker’s program. This dual commitment to inexpensive eyewear for all, paired with a program to improve access to eyewear for the global poor, makes Warby Parker an exemplary assumption-busting social enterprise.

Chasing tax cheats using normal procedures was not an option. It would take decades just to identify anything like the majority of them and centuries to prosecute them successfully; the more we caught, the more clogged up the judicial system would become. We needed a different approach. Once Danis was on board a couple of days later, together we thought of one: we would extract historical and real-time data from the banks on all transfers taking place within Greece as well as in and out of the country and commission software to compare the money flows associated with each tax file number with the tax returns of that same file number. The algorithm would be designed to flag up any instance where declared income seemed to be substantially lower than actual income. Having identified the most likely offenders in this way, we would make them an offer they could not refuse. The plan was to convene a press conference at which I would make it clear that anyone caught by the new system would be subject to 45 per cent tax, large penalties on 100 per cent of their undeclared income and criminal prosecution. But as our government sought to establish a new relationship of trust between state and citizenry, there would be an opportunity to make amends anonymously and at minimum cost. I would announce that for the next fortnight a new portal would be open on the ministry’s website on which anyone could register any previously undeclared income for the period 2000–14. Only 15 per cent of this sum would be required in tax arrears, payable via web banking or debit card. In return for payment, the taxpayer would receive an electronic receipt guaranteeing immunity from prosecution for previous non-disclosure.17 Alongside this I resolved to propose a simple deal to the finance minister of Switzerland, where so many of Greece’s tax cheats kept their untaxed money.18 In a rare example of the raw power of the European Union being used as a force for good, Switzerland had recently been forced to disclose all banking information pertaining to EU citizens by 2017. Naturally, the Swiss feared that large EU-domiciled depositors who did not want their bank balances to be reported to their country’s tax authorities might shift their money before the revelation deadline to some other jurisdiction, such as the Cayman Islands, Singapore or Panama. My proposals were thus very much in the Swiss finance minister’s interests: a 15 per cent tax rate was a relatively small price to pay for legalizing a stash and allowing it to remain in safe, conveniently located Switzerland. I would pass a law through Greece’s parliament that would allow for the taxation of money in Swiss bank accounts at this exceptionally low rate, and in return the Swiss finance minister would require all his country’s banks to send their Greek customers a friendly letter informing them that, unless they produced the electronic receipt and immunity certificate provided by my ministry’s web page, their bank account would be closed within weeks. To my great surprise and delight, my Swiss counterpart agreed to the proposal.19

It is clearly evident that unethical and corrupt practices were the bedrock of Prannoy Roy journalism. After getting the Doordarshan contract through patronage and a quid pro quo, he shrewdly cashed out over Rs.23 crores (to his personal account in 1994-95) in a short span of few years (see Table 1 below) by selling shares at astronomical valuations to a foreign investor. Simply put, through political patronage he built a business and cashed out for personal profit.  Table 1. Source: NDTV public issue prospectus filed with SEBI in 2004. Date of transfer No. of Equity Shares (Face value of Rs.10) Cost per Shares (Rs.) Price (Rs.) Nature of payment No. of Equity Shares (of Face Value of Rs.4) post splitting 21 Oct 1994 48,140 10 675 Cash 120,350 16 May 1995 99,070 10 675 Cash 247,675 Jul 21 1995 121,625 10 675 Cash 304,063 Aug 22 1995 81,481 10 675 Cash 203,702 After inking favorable deals with Doordarshan, many people in Central Government in 1997 helped NDTV to clinch a magical figure deal with Rupert Murdoch’s Star TV[3] during the liberalization period. The Lutyens Delhi’s cozy club arm twisted Murdoch into an agreement with Prannoy Roy’s NDTV to launch the Star News channel.

scandals. I called my presentation “The Armed Forces of Corporate Governance Abuse” to describe the many ways that the oligarchs went about ripping off their minority shareholders. The “Army” was transfer pricing; the “Navy,” asset stripping; and the “Marines,” shareholder dilutions.

Putin and his defenders abroad bragged about Russia’s rising GDP, but it was like taking the average temperature of all the patients in a hospital. According to the 2015 numbers, even after a year of Western sanctions and plunging oil prices, there are still eighty-eight Russian billionaires on the Forbes list, which still doesn’t list Putin or several of his closest cronies. I find it impossible to believe that a man like Putin who holds the power of life and death over eighty-eight billionaires is not the richest of them all. The occasional leaks about mysterious Black Sea mansions and enormous bank transfers to nowhere add more circumstantial evidence to the case that by now Putin is likely the richest man in the world.

With the brakes off, the oligarchs embarked on an orgy of stealing. The tools they used were many and with no law enforcement to stop them, their imaginations ran wild. They engaged in asset stripping, dilutions, transfer pricing, and embezzlement, to name but a few of their tricks.

The internal slave trade became the largest enterprise in the South outside of the plantation itself, and probably the most advanced in its employment of modern transportation, finance, and publicity. It developed its own language: prime hands, bucks, breeding wenches, and fancy girls. Its routes, running counter to the freedom trails that fugitive slaves followed north, were similarly dotted by safe houses - pens, jails, and yards that provided resting places for slave traders as well as temporary warehouses for slaves. In all, the slave trade, with its hubs and regional centers, its spurs and circuits, reached into every cranny of southern society. Few southerners, white or black, were untouched. In the half century following the War of 1812, planters and traders expanded and rationalized the transcontinental transfer of slaves. During the second decade of the nineteenth century, traders and owners sent an estimated 120,000 slaves from the seaboard to the west, with the states and territories of Georgia, Tennessee, Alabama, and Louisiana being the largest recipients. That number increased substantially during the following decade and yet again during the 1830s, when slave traders and migrating planters uprooted almost 300,000 black men, women, and children. By this time, though most of the slaves still derived from the Upper South - particularly Maryland and Virginia - their destination had moved further west. Alabama and Mississippi had become the largest recipients, with each receiving nearly 100,000 slaves during the 1830s. The Panic of 1837 and the subsequent decline in cotton and sugar production deflated the price of slaves and the trade slackened for a few years. But prices soon revived and with them the demand for slaves. Nearly one quarter of a million slaves left the seaboard for the interior during the 1850s, with more than half being taken west of the Mississippi River. The 'mania for buying negroes' easily overwhelmed periodic bans against slave importation and did not cease until the arrival of Union troops.

As share prices rise, the money men ratchet up immense profits, leaving bankers with a juicy cut. And when the bubble bursts, the bankers dial the number of their favorite politician, whose campaign they featherbedded, and, before anyone notices, their losses are transferred to the taxpayer — many of whom the banks evict from their homes after foreclosing on their mortgages.

Most’s eclectic background also provided the spark behind the invention of what would become known as the ETF. During his travels around the Pacific, he had appreciated the efficiency of how traders would buy and sell warehouse receipts of commodities, rather than the more cumbersome physical vats of coconut oil, barrels of crude, or ingots of gold. This opened up a panoply of opportunities for creative financial engineers. “You store a commodity and you get a warehouse receipt and you can finance on that warehouse receipt. You can sell it, do a lot of things with it. Because you don’t want to be moving the merchandise back and forth all the time, so you keep it in place and you simply transfer the warehouse receipt,” he later recalled.19 Most’s ingenious idea was to, after a fashion, mimic this basic structure. The Amex could create a kind of legal warehouse where it could place the S&P 500 stocks, and then create and list shares in the warehouse itself for people to trade. The new warehouse-cum-fund would take advantage of the growth and electronic evolution in portfolio trading—the simultaneous buying and selling of big baskets of stocks first pioneered by Wells Fargo two decades earlier—and a little-known aspect of mutual funds: They can do “in kind” transactions, exchanging shares in a fund for a proportional amount of the stocks it contains, rather than cash. Or an investor can gather the correct proportion of the underlying stocks and exchange them for shares in the fund. Stock exchange “specialists”—the trading firms on the floor of the exchange that match buyers and sellers—would be authorized to be able to create or redeem these shares according to demand. They could take advantage of any differences that might open up between the price of the “warehouse” and the stock it contained, an arbitrage opportunity that should help keep it trading in line with its assets. This elegant creation/redemption process would also get around the logistical challenges of money coming in and out continuously throughout the day—one of Bogle’s main practical concerns. In basic terms, investors can either trade shares of the warehouse between themselves, or go to the warehouse and exchange their shares in it for a slice of the stocks it holds. Or they can turn up at the warehouse with a suitable bundle of stocks and exchange them for shares in the warehouse. Moreover, because no money changes hands when shares in the warehouse are created or redeemed, capital gains tax can be delayed until the investor actually sells their shares—a side effect that has proven vital to the growth of ETFs in the United States. Only when an ETF is actually sold will investors have to pay any capital gains taxes due.

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China is thus following a path similar to that set by the United States after World War II, when it gave unstinting support to undemocratic governments in the Middle East on the promise of long-term access to low-priced oil-though without the huge arms transfers that accompanied, and remain a key component of, US political support.

Churchill made a point about the power of government: A National or Municipal Beef Trust, with the United States Treasury at its back, might indeed give more regular employment at higher wages to its servants, and might sell cleaner food to its customers—at a price. But if evil systems corrupt good men, it is no less true that base men will dishonor any system, and while no bond of duty more exacting than that of material recompense regulates the relations of man and man, while no motion more lofty than that of self-interest animates the exertions of every class, and no hope beyond the limits of this fleeting world lights the struggles of humanity, the most admirable systems will merely succeed in transferring, under different forms and pretexts, the burden of toil, misery, and injustice from one set of human shoulders to another.

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We need the rich today to do their modest part to enable all of society to share in prosperity. By passing that hurdle, we would reduce the need for long-term transfers from rich to poor in the future. The

Despite the continual calls for expanded background checks after mass public shootings, there is no evidence that background checks on private transfers of guns would have prevented any of the attacks. Nor is there any statistical evidence that indicates that these mass public shootings are rarer in states with background checks on private transfers. What we do find is that fatalities and injuries from mass public shootings increased in states after they imposed background checks on private transfers. States with background checks on private transfers tended to have relatively low rates of murders and injuries from mass public shootings before the passage of background checks on private transfers, and these rates became relatively high afterwards. Clearly, there is no evidence that these laws lower mass public shootings. There are real costs of expanding background checks to private transfers. In particular, the fees on private transfers reduce gun ownership, particularly among law-abiding poor blacks who live in high crime urban areas and who benefit the most from protecting themselves; they will be the ones most likely priced out of owning guns for protection. Without some benefits in terms of either reduced crime or mass public shootings, it is hard to see how these rules pass any type of cost-benefit test.

In many cases, help for the poor is not simply an income transfer used for short-run consumption but is a government benefit that enables poor households to raise their long-term productivity. Some of the key government programs for poor households include help for nutrition of mothers and young children; preschool; college tuition; and job training. Each of these is a government-supported investment in “human capital” and specifically a way for a poor household to raise its long-term productivity. Taxing the rich to help the poor can then mean cutting lavish consumption spending by the rich to support high-return human investments by the poor. The outcome is not only fairer but also more efficient. The

The information revolution didn't make information free. What it did was transfer the money from the producers of information to the owners of the technologies that deliver it to their audience

But Amazon is not alone in its avoidance of taxes. Bloomberg Businessweek reports, “The tactics of Google and Facebook depend on ‘transfer pricing,’ paper transactions among corporate subsidiaries that allow for allocating income to tax havens while attributing expenses to higher-tax countries. Such income shifting costs the U.S. government as much as $60 billion in annual revenue, according to Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon.” At a time when both local and federal governments are putting off needed infrastructure improvements because of tax revenue shortfalls, the tax avoidance schemes of our richest technology companies are partially to blame.

In October 2010 a Bloomberg reporter explained how Google Inc. cut its taxes by $3.1 billion in the previous three years through transfer pricing games known by names such as the “Double Irish” and the “Dutch Sandwich,” ending up with an overseas tax rate of 2.4 percent. The problem is getting worse. Microsoft’s tax bill has been falling sharply, for similar reasons. Cisco is at it. They are all at it. Transfer pricing alone costs the United States an estimated $60 billion a year—and that is just one form of the offshore tax game.

to transfer her rage after all. She wanted David Price dead. And then, for the first time, she truly understood Griffin. And then, for the first time, she had an inkling of an idea. The front door opened and shut. Laurie, who had gone out to get the mail, walked into the family room, sifting through the pile. She came

The part of national income that is available to families, after taxes have been paid and any transfers received, is personal disposable income, which is the second line from the top. It is a good deal smaller than GDP, but the historical picture of growth and fluctuation is very similar. Much the same is true if we look, not at what people get, but at what they spend. This is consumers’ expenditure, the third line. The difference between personal disposable income and consumers’ expenditure is the amount that people save, and the figure shows that the fraction of their income that Americans save has been falling, especially over the past thirty years. We don’t know exactly why this has happened, and there are several possible explanations: it is easier to borrow than it used to be; it is no longer as necessary as it once was to save up to make the deposit on a house, a car, or a dishwasher; Social Security has perhaps reduced the need to save for retirement; and the average American benefited from increases in the stock market and in house prices—at least until the Great Recession.

You could be on the other side of the door which you think is barred against you. It will open wide when you are ready to enter; that is, when you have paid the price of admission. No one can give you a free pass, and admission tickets are not transferable. You must pay the price yourself or stay outside. The price is self-effort.

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