After a couple years of ads telling men to do laundry turned out, weirdly, to not boost fertility, Korea is back to financial incentives, which prior research has shown do work but at a very high price.
But this isn't actually all that many bucks!
But it's actuarially equivalent to about a $575 increase in the U.S. child tax credit. A non-trivial increase to be sure, but not like a sea-change in family policy regimes.
They're expanding the parental leave benefit to a cap of $14,000 (combined, I think?) in parental wage replacement benefits received across 3 months. I'm not sure what the prior replacement rate was.
Korea spends 1.5%. This program will increase it to 1.6-1.7%.
It's an improvement but it's not a radical change.
More from Lyman Stone 石來民
Hogan Gidley: Trump is "the most masculine person to ever hold the White House as the president of the United States" https://t.co/fcoYWyaEhz
— Eliza Relman (@eliza_relman) January 11, 2021
Or Teddy Roosevelt. Or Dwight Eisenhower. Or Andrew Jackson. Or Abraham Lincoln. Or George Washington. Or Zachary Taylor. Or any of numerous presidents who were honest-to-goodness battle-hardened warriors.
James Monroe fought the Hessians at Trenton and nearly died of wounds sustained there, then wintered in Valley Forge, then fought until Monmouth, then repeatedly tried to raise new regiments for the war until he went bankrupt doing it.
James Monroe, of the Era of Good Feelings, longest serving president of all time.... was in the boats crossing the icy Delaware.
Andrew Jackson was in a duel. He was shot in the chest right by his heart.
But he didn't go down. He stood there and, while bleeding out, steadily took aim and killed the dude who shot him.
Stone cold.
More from Finance
Even after investing for 14 years, I uncover new insights every time I reread his letters.
Recently, I reread his letters from 1977 to 2020 for a third time.
Here are my key insights:
1. Moat is NEVER stagnant
A company's competitive position either grows stronger or weaker each day.
Widening the moat must always take precedence over short-term targets.
2. Commodity businesses
A business without moat will have its returns competed away.
Regardless of improvement, your competitors will quickly copy your advantage away.
Where returns on capital is dismal, reinvestment will only destroy value.
3. The flywheel effect
Buffett was preaching about the flywheel effect before it became cool.
Back then, newspapers were similar to today's platform businesses like Amazon, Meta, and App Store.
More readers beget more advertisers beget more readers.
4. Operating leverage
Companies with high fixed costs and low variable costs will see earnings rise faster than revenue.
However, it cuts both ways.
It becomes a disaster when revenue is declining.
Check out my article on how operating leverage works: https://t.co/Nv747oBAK0
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\U0001f447\U0001f447
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