The World's Best Book Summaries
What is the role of taxation in an economy? Under what circumstances does raising taxes hinder the economy on the national level? Some tax-funded projects are essential to keep the country running. But when the government uses taxes to fund projects and pay wages that are unnecessary, the consequences begin to outweigh the benefits. In this article, we’ll consider the effect of taxation in the context of public works funding.
What is parity pricing? How does the parity pricing strategy influence employment and national wealth? Parity is the notion that farmers must be paid on par with the cost of industrial goods and farm equipment. According to economist Henry Hazlitt, parity pricing hurts consumers and decreases national wealth. In this article, we’ll take a look at how the parity pricing strategy works and why it can hurt the consumer.
What is the medical loss ratio? How much of their premium revenue do health insurance companies actually spend on medical care? Medical Loss Ratio (MLR) is the percentage of revenue from premiums spent by insurers on medical care. Before the Affordable Care Act, some providers’ ratio was as low as 64%. Today, it is closer to 80%. Here is how medical loss ratio works in the United States.
How are prices determined in the U.S. healthcare system? How do doctors bill for their services? In the United States, prices for medical procedures are determined by the American Medical Association of Physiology (AMA). Once set, the Relative Value Units (RVUs) have systemic national implications, nudging doctors toward performing the higher compensated procedures. In addition, doctors have their own methods to fluff up the patient’s bill. This article takes a look at the pricing in healthcare, including the strategies that doctors themselves use to bill their patients.
How can mastering investments and taxes help you build wealth? How do investments affect taxes? Mastering investments and taxes helps you minimize your taxable income and grow your wealth. Investments minimize taxes because you don’t have to pay taxes on your capital gains until you actually sell your assets. Read more to discover the importance of mastering investments and taxes.
How do television commercials influence purchasing decision-making? What’s the problem with making a purchase based on a tv commercial recommendation? Television commercials rely on images, emotions, and stories. Because of this, commercials are able to influence what you buy or who you support without providing you with market research or relevant facts to back it up. Here’s how the influence of commercials have spread from business to politics to our relationship with history.
Why is healthcare so expensive in the U.S. compared to other countries? Why do American doctors make so much money? There are several reasons why healthcare costs in America are so exorbitantly high. Medical school fees are only part of the problem—the most salient reason is that U.S. healthcare prices are determined by market forces. In most other countries, healthcare is at least partially under the control of the government. To understand how this state of affairs has come to be, we need to go back to the middle of the 20th century.
What is The Millionaire Next Door book about? Is The Millionaire Next Door still relevant today? William D. Danko and Thomas Stanley’s Millionaire Next Door book explains the characteristics of the everyday millionaire and shows how they make, keep, and grow their wealth. These wealth-building principles outlined in Thomas Stanley’s Millionaire Next Door remain relevant today. Read on to learn how The Millionaire Next Door book can help you become wealthy too.
Who is a prodigious accumulator of wealth? How do you calculate to see if you are a prodigious accumulator of wealth (PAW) or an Under Accumulator of Wealth (UAW)? A prodigious accumulator of wealth has a net worth (excluding inheritance) at twice the expected level for their age, while an under accumulator of wealth has a net worth less than half of the expected level. You can calculate your expected net worth by multiplying your age times your annual household income divided by 10. Read more about prodigious accumulators of wealth below.
Is Elisabeth Rosenthal’s An American Sickness worth reading? What is the main reason the quality of U.S. healthcare lags behind other developed countries? American healthcare is commonly known to be in a deplorable state, costing 18% of GDP while underperforming in quality among developed nations. In her book An American Sickness, Elisabeth Rosenthal examines the competing interests of the major blocs in American healthcare to unpack how it got to its current overpriced yet underperforming state. Here is a brief overview of An American Sickness: How Healthcare Became Big Business.