Happy July 4th
- Posted by Jeff Carter
- on July 4th, 2012
On this day in 1826 both John Adams and Thomas Jefferson passed away. Literature says that each looked forward to fireworks and huge national celebrations on July 4. They knew what they did starting back in 1774 was historic. An American experiment.
Experiments aren’t set in stone, but there are guiding principles that help you organize the scientific test. Our guiding principles were set forth in the Bill of Rights, and Constitution. Unfortunately, when we go away from those principles, we get huge imbalances and stupid behavior.
On the way in from the woods to plop myself down at an internet cafe in Grand Marais, MN (thanks JavaMoose), I had NPR on the radio. The stories were full of statistical fallacy.
First, I heard how many towns across the US are cancelling fireworks due to dry weather. I don’t recall that ever happening when I was growing up. I can’t help but think it’s because of “lawyer fear”. Fear of lawsuits from predatory lawyers. How many big fires are ever started from public fireworks celebrations? The fire department is usually right there and ready for action. Statistically, my gut tells me that this is a manufactured problem-not one rooted in fact.
Second, I heard the black unemployment rate in the Twin Cities is much higher than the white unemployment rate. According to the news people, this is a problem. However, if you dig into statistics on unemployment, you will find it’s really correlated to education. If you graduate from high school or college, you do better. Guess what? Blacks are dropping out of high school at a far higher rate than whites. That could be a predictor for unemployment right there. Racism has nothing to do with it. Jim Crow is a part of our ancient history now.
Third, among poor whites and poor blacks, the rate of out of wedlock births is the same. This is a scary stat because we know that babies born to single parents (regardless of race) don’t do as well as people that come from two parent families. Out of wedlock births create a culture of government dependence. I don’t care what your race is, no one wants to have a society that is totally dependent on government.
Out of all the things that were uttered at the Constitutional Convention, my favorite comes from Ben Franklin. As they left Independence Hall in Philadelphia, someone asked Ben Franklin what happened, ““Well, Doctor, what have we got—a Republic or a Monarchy?” Franklin retorted, “A Republic, if you can keep it.”

Independence Hall is one of my favorite places to visit. What was accomplished there was truly innovative and groundbreaking in human history. The funny thing is, when you read an autobiography of Alexander Hamilton, Jefferson, or Adams, they knew they were on to something. But they knew they had a start up. They went into it with trepidation and fear of failing. America became the greatest start up company the world has ever seen.
I think on Independence Day, it’s critically important to think hard about Franklin’s words and the intent of the Founders. Perhaps before you go out tonight and enjoy some pyrotechnics, unless your town is afraid of some lawyers, begin to read the Federalist Papers or a little de Toqueville.
Those texts are true genius. As a good friend of mine said to me once, The Constitution and the Bill of Rights may be the best singular written text in the history of mankind, other than the Bible.

It’s not an accident. It’s not luck.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Jeffrey Carter is an angel investor and independent trader. He specializes in turning concepts into profits. He co-founded Hyde Park Angels one of the most active angel groups in the United States in April of 2007. He previously served on the Chicago Mercantile Exchange Board of Directors. He has done market commentary for (More...) -
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