Gongol.com Archives: May 2025
May 10, 2025
Benjamin Franklin's particular genius was his ability to condense answers that could reliably guide most people 80% of the time into pithy sentences, usually containing a rhyme or some other mnemonic flair. Even today, a person could commit the better part of the Franklin papers to memory, following the advice by default unless a compelling circumstance intervened, and end up in the right spot four times out of five. ■ Franklin was especially astute when it came to money. In his 1742 edition of Poor Richard's Almanack, he shared the simple but memorable line, "You will be careful, if you are wise; How you touch Men's Religion, or Credit, or Eyes." ■ A simple enough rhyme in itself, helpfully recommending caution in conduct that makes just as much sense today as yesterday. We still know better than to pick fights over religion or to undercut another party's reputation for creditworthiness. For the latter, attorneys are standing by. ■ Taken seriously, Franklin's advice could even spare the United States trouble on the macroeconomic scale. The Treasury's effective interest rate has been persistently elevated since the announcement of policies meant to punish trading partners. The uncertainty has spooked the Federal Reserve, too. ■ What is credit, if it isn't confidence that the other party in a transaction will do as they promise? If a country acts erratically or seeks to re-write existing rules of exchange, then it should come as no surprise if its national credit is diminished as a result. Franklin knew that was an undesirable outcome. All we need to do is be humble enough to heed long-established advice.
