Former NBA all-star and now commentator Charles Barkley recently sat down with Conan O’Brien and said that Michael Jordan, Tiger Woods and Scottie Pippen are very cheap individuals and that they don’t give homeless people money or they don’t tip waiters well.
Barkley cited an example when he gives homeless people money. He admitted he takes part in this practice, but every time he does, Jordan slaps his hand and says, “If they can ask you for spare change, they can say, ‘Welcome to McDonald’s, can I help you, please?’”
“I think it’s important when you’re successful, the waiter, the waitresses, the blackjack dealers, they work extremely hard, they don’t get a great salary,” Barkley told O’Brien. “The more successful you are, the more you should tip, I truly believe that. … I never went overboard. I tipped $25,000 before. I won about $700,000 at a blackjack. You have to tip. I probably should have tipped more to be honest with you.”
“I think that’s why [Woods and Jordan are] rich,” Barkley added. “They don’t tip. That’s their secret to being rich, they don’t tip.”
There are two important points that Barkley needs to understand:
In his groundbreaking book “Economics in One Lesson,” economist and author Henry Hazlitt provided an example of two brothers who inherited a lot of money, but both had two different philosophies as to how they should spend their money.
The first brother took his fortune and had a great time with it: he would go to the best restaurants and purchase the best clothing. When he would attend a cafe, he would tip the server a large sum of money. This extravagant spending led him to become the most popular guy in town. It might have given the economy a short-term boost in the arm too.
The second brother, meanwhile, was a lot more conservative in his spending habits. He led a modest lifestyle and decided to save and invest his fortune. It turned out that depositing his money into a bank and investing his money into the economy did a lot more: it helped the private sector to establish companies, it helped enterprises expand their current business and it also created jobs. His prudence benefitted the economy in the long run.
As the first brother lost most of his fortune, no one seemed to care about him anymore – not the waiters, the tailors, the restaurant owners. The second brother, who helped the economy through saving and investing, still had his wealth and then some (interest and dividends), which then allowed him to serve as a consumer as he bought goods and services with his savings.
The moral of the story: stimulus never works and creates malinvestment, but savings and investments allow the economy to grow and flourish and benefit the person who made the initial investment.
If Charles Barkley can give homeless men and women money then he’s assisting in immediate short-term relief. However, Jordan, Woods and Pippen are aiding the overall economy because their wealth is in itself investing in pretty much everything.
Value of Money
Each person is different: his morals, his values, his ethics, his tastes in food, art and entertainment. The same can be said about his money. Some people value their money greatly, while others are quite indifferent to their net wealth. One group of people is philanthropic, while the other is misanthropic.
Every single person has their own value scales, which also means an individual can do whatever they want with their own money without having force used upon them or perhaps even being judged for how they handle their funds.