By Byron Moore, posted March 26, 2018
Originally published in the News Star and the Shreveport Times on Sunday, March 25, 2018.
Question: I have seen my own parents and some of my friends do some things financially and otherwise that just seem obviously dumb. Or at least shortsighted. The example I’m thinking of when they buy things with a credit card that will then charge them 18% for the privilege. But it could be any number of things. Why do you think people make these kinds foolish financial decisions?
Answer: Economists like to say people are rational.
Whenever I read that, I think, “Sure are…sometimes. But other times, they are fearful, other times resentful, other times prideful and once in a while, just plain dumb.”