It dawned on me while reading Lew Rockwell’s blog (well, randomly some period after reading it) that the reason that no one in government understands why we are in such a financial crisis, with the exception of Ron Paul, is because of the opportunity cost of being in Congress while understanding the intricacies of the financial markets is massive.
In what one author hoped would be a nice little criticism of Peter Schiff’s success turns out to be an inadvertent testimony to the unrealized wealth Schiff would give up if he won his Senate race. After quoting a guy accusing Schiff of being unpatriotic for investing overseas, the article illustrates Schiff’s opportunity cost very nicely.
If elected, Schiff may have a tougher time maintaining the source of the bulk of his income — his salary as president of Euro Pacific Capital, a Westport-based brokerage. . Senators generally are barred from practicing a profession on Senate time, from serving as an officer of a regulated entity, and from receiving compensation from an organization that provides professional services involving a fiduciary relationship. Schiff’s side income could be in danger, too. He made tens of thousands of dollars speaking at investment seminars, and smaller amounts writing for news outlets.
Instead of brilliant finance minds like Schiff entering into government jobs, they make great use of their life by working for their own future. All the rejects end up in government positions where they eventually grow into power and are celebrated amongst each other for regulating the likes of Buffet and Schiff. It’s an unfortunate reality, but one we are going to change.
(Note: This is not meant as an endorsement of Peter Schiff or any other candidate for office by the author of this post or YAL as an organization. YAL does not support or oppose candidates for office.)Published in