I recently finished an excellent book Increase your Financial I.Q. by Robert Kiyosaki. One theme that he re-iterates over and over (as well as in other books) is the lack of financial I.Q. today. Many people just trust their money to people such as financial planners and mutual fund managers to manage their money instead of deal with it themselves. He explains that the reason why more people are not wealthy is because of their lack of financial knowledge.
Granted, it does take time and effort to become knowledgeable about finances, but with something as important as wealth and management of our wealth why do many put it on the back burner and make no effort to increase their knowledge of financial matters? Well, I will let you ponder that yourself but the point I want to make is that most people have a very small political I.Q. A friend of mine recently helped with both the Franken and Obama campaigns last fall becoming quite active with the campaign. What I find amazing is that they do not know the difference between the Keynesian and Supply-side economic camps. They do not understand that underlying these contrasting agendas is an economic belief that we can spend ourselves out of a recession versus creating incentives to grow the economy.
Besides that, how many people vote based on shallow beliefs? I would bet many vote Democratic because their parents are Democrats or Republican because their parents are Republican without a second thought. Others might believe restricting gun ownership will solve violence problems despite the fact that the second amendment guarantees the right to bear arms. Most people are likely unaware that the Federal Reserve is a private bank and not a part of the government, yet has control of the monetary policies of the United States. Besides this, many do not know what the Constitution says and how the government has overstepped the Constitution.
I know someone (actually, multiple persons) who voted for Obama for his economic policies. I can guarantee you that most of these people do not understand his economic policies, nor the fundamentals of Keynesian economics (versus Supply side and Austrian). Now I am not saying that you need to know everything about every candidate and political issue, but it is important to have a political I.Q. in the same way it is important to have a strong Financial I.Q. Some may be overwhelmed by politics and feel it is beyond their understanding. Let me ask you this: If you were trying to make a million dollars in one year with only $1,000 to work with, would you not feel overwhelmed and defeated? The important thing is to simply start. Read a political book that you would not normally read. Expose yourself to new ideas. Focus on one issue and try to have a general understanding (The War on Drugs is a great place to start – very interesting subject!) and then move on to another issue.
You will be surprised how applicable a political I.Q. is to your life. Here’s one way: the government will probably in one tax or another take over/nearly half of whatever income you take in and spend it on primarily unconstitutional and wasteful things. So spend a little time here and there improving your political I.Q. It can only help you.