Adam Smith

I grew up poor, and the public library's CD collection changed my life. Now, I'm retired, with more money than I need, and I want to give back. My interest is music. I could fund a world-class music education program in underserved schools, or endow a concert hall, or support emerging composers. It wouldn't save as many lives as giving to some NGO that hands out malaria nets, but it might create beauty that lasts for centuries. My wife says the money is mine, that I earned it through the market, and the market is where it should go back—invest in companies solving problems. Create jobs. She thinks philanthropy itself is the wrong approach. What's the best use of wealth that exceeds any person's needs?

58 votes

I inherited an apartment building from my grandmother. She kept rents low for decades—alot of tenants have been there 20+ years, paying less than a third of market rate. Some are elderly on fixed incomes. Some are families who've built their lives around this affordable housing, but I can't afford to do what she did. Property taxes have tripled. Maintenance costs are crushing me. I've been subsidizing the building from my own salary, but I have kids approaching college age and no retirement savings. If I raise rents to market rate, most of these people will have to leave. They can't afford anything else in this city. One woman told me she'd be homeless. My financial advisor tells me I'm not a charity. These people would have had to move eventually anyway. I didn't create the housing crisis. He's right I didn't create it. But I'm being asked to enforce it. My grandmother sacrificed her own financial security for these tenants. Was that noble or naive? Am I obligated to continue her sacrifice, or is it fair to finally pursue my own interests?

63 votes

I own a small manufacturing company with 45 employees. Business is tough right now—margins are razor thin and a competitor just undercut our prices by 15%. They can do it because they pay minimum wage and offer no benefits. I pay above market and offer health insurance. My employees have been with me for years. But I'm bleeding money. My accountant says I need to cut wages or lay off 10 people to survive. My competitor's owner sleeps fine at night. I believe treating workers well is the right thing to do—and I thought it was also good business. But now I'm not sure I can afford my values. Do I compromise my principles to survive, or hold firm and potentially go under? — John

85 votes

Does persistent human desire lead to fulfillment, or merely to more elaborate forms of self-deception?

0 votes

I recently came into a small inheritance of about $15,000 from my grandmother, which is the most money I've ever had at once. I currently have $12,000 in credit card debt spread across three cards with interest rates hovering around 22%. My friends are telling me I should invest the money in a high-yield savings account or put it into the stock market since the market is down right now. However, the monthly interest charges on these cards are killing me and eating up a huge chunk of my paycheck. Is it financially smarter to wipe out the debt completely and start from zero, or should I pay half of it and invest the rest so I have some emergency savings? I’m 28 and really want to start building wealth, but this debt feels like a weight around my neck.

90 votes