Written by Kimmy Wan, Pictures by Ian Harris
Living and traveling in different parts of the world, like Asia, the U.S., and England, has given me a unique perspective on how economies grow, how people invest, and how cultures influence spending. This year, I visited the sites related to Andrew Jackson, the seventh President of the United States, the man we all see on the $20 bill. I wanted to know why he is considered an important president. In this essay, I will explain the background of today's economy in the Midwest, West Coast, and South, and then use Andrew Jackson as an example to understand key points for moving forward with financial literacy. By looking at these regions and Jackson's life, I hope to provide useful lessons for making good financial decisions and teaching these lessons to future generations.
Part I: Background and Regional Development
The Midwest, known as America's heartland, is a place where farming and manufacturing have deep roots. Imagine the bustling car factories of Detroit and the roaring steel mills of Gary, Indiana. This region thrives on its rich natural resources, like fertile land and the vast Great Lakes, which have fueled its industries. One of the coolest cultural events I've attended is the Cheyenne Frontier Days in Wyoming. Picture this: cowboys showing off their skills in rodeos, livestock strutting their stuff in shows, and a community coming together to celebrate agriculture. It's a vibrant scene that underscores just how important farming and ranching are to the local economy.
And here's a fun fact: I once tried something called "Rocky Mountain oysters" at the festival. Spoiler alert – they're not seafood! They're actually a local delicacy, and trying them is a rite of passage for any adventurous eater in the Midwest.
The West Coast, covering states like California, Oregon, and Washington, is where tech innovation, entertainment, and international trade come together in a spectacular mix. Think of Silicon Valley in California, a global tech powerhouse where the latest gadgets and groundbreaking software are born. Then there's Hollywood in Los Angeles, the epicenter of movies and entertainment, where dreams are made and stars are born.
The West Coast's prime spot on the Pacific Ocean makes it a vital player in trade with Asia. This strategic location has also led to a vibrant Asian American community, making California the state with the second-largest Asian American population, just behind Hawaii. It’s a melting pot of cultures and industries, creating a dynamic and exciting environment that’s constantly buzzing with activity.
The South, has evolved significantly from its agricultural roots, particularly cotton production, to a diverse and dynamic economic landscape. Andrew Jackson, born in the Waxhaws region along the border of North and South Carolina and later active in Tennessee, is a notable historical figure from this area.
Today, the South's economy includes robust industries such as energy (oil and gas in Texas) and automotive manufacturing, with significant plants in Alabama and Tennessee. Visiting these states offers a rich educational experience, revealing how German, French, and English settlers arrived and influenced the region. I have learned about the critical transition from a slavery-based economy to a modern economy driven by industry and services, showcasing the South's ongoing adaptation.
And here is a thought: ever wondered why so many Californians are packing up and moving to the Southern States? In the past five years, over 500,000 Californians have made the big move. Is it the tantalizing BBQ? The legendary Southern hospitality? Or maybe they're just tired of high state taxes and want to trade in their surfboards for a glass of sweet tea? It's fascinating to study these migration trends!
Part II: Comparing the Economies and Main Industry
The Midwest's economy is still heavily influenced by manufacturing and farming. Illinois, for example, produces a lot of soybeans and corn, while Ohio and Michigan are central to the car industry. The Midwest is also home to major companies like General Motors, Ford, Kellogg’s, and John Deere.
In contrast, the West Coast is driven by tech companies like Apple, Google, Amazon, Facebook (Meta), Netflix, Microsoft, and Amazon. The South is growing fast in energy and car manufacturing, with major plants in Alabama and Tennessee, and is home to companies like Coca-Cola, Delta Air Lines, Walmart, Jack Daniel’s Tennessee Whiskey, FedEx, and Tyson Foods. This regional diversity highlights the unique strengths and industries that define each area of the U.S.
Part II: Cultural and Spending Habits
Cultural differences across these regions significantly influence spending habits and economic trends. In the Midwest, people tend to be practical and conservative with their spending. This region values saving and cautious investment, reflecting its agricultural roots and steady industrial growth. According to the Bureau of Economic Analysis (BEA), the Midwest's GDP growth has been stable, with notable contributions from manufacturing and agriculture. As of 2023, the Midwest had an average unemployment rate of 3.5%, indicating a robust job market.
The West Coast, on the other hand, has a more liberal and high-spending culture. With tech giants like Apple, Google, and Amazon driving economic growth, the West Coast is a hub for innovation and high income. The GDP of California alone was approximately $3.4 trillion in 2022, making it the largest state economy in the U.S. The region's unemployment rate fluctuates with the tech industry's cycles but generally remains around 4.1%, reflecting a dynamic job market. While there is an influx of startups coming to California for higher earning potential, in recent years, major corporations like Tesla, Oracle, Hewlett Packard Enterprise, Palantir Technologies, and Charles Schwab have relocated their headquarters from California to states such as Texas and Colorado, driven by the high cost of living, expensive real estate, high taxes, and stringent regulations in California, in search of more favorable business environments, lower operational costs, and more business-friendly regulatory climates.
The South blends traditional values with modern economic ambitions, creating spending habits that reflect both its historical roots and current growth. The region has seen substantial economic development, with significant contributions from energy and automotive industries. Texas, for example, had a GDP of around $2 trillion in 2022, making it a key player in the national economy. The unemployment rate in the South has been relatively low, averaging 3.6% in recent years. Additionally, states like Texas and Florida have seen a surge in corporate relocations, with companies like Tesla and Oracle moving their headquarters to benefit from favorable business climates.
Part III: Case Study from Andrew Jackson's Life
Andrew Jackson's life offers valuable lessons on economic resilience and leadership. Born during the era of the cotton gin, he witnessed significant economic and social changes. Despite his controversial policies, including the Indian Removal Act and his stance on slavery, Jackson managed to pay off the national debt by vetoing the recharter of the Second Bank of the United States, promoting the sale of federal lands, and reducing federal spending. He also leveraged tariff revenues and avoided federal funding for internal improvements to generate surplus revenue. These measures enabled the U.S. to become debt-free for the first and only time in its history in 1835. However, his adopted son's inability to sustain the family's wealth underscores the complexities of inheritance and the value behind money.
Jackson's legacy raises questions about the sustainability of wealth across generations and the importance of economic education. Understanding Jackson's financial wisdom can offer insights for future generations on managing wealth and fostering economic resilience. Here are the summaries of what I think you should share with your children and grandchildren.
1. Practice Economic Resilience
Jackson's leadership during the Panic of 1837, a financial crisis triggered by speculative lending practices, underscores the importance of resilience. Despite the economic downturn, Jackson's policies and leadership helped the nation navigate through tough times. We must learn how our family can handle economic ups and downs by building a strong family reserve and staying adaptable.
2. Manage Debt Wisely
Jackson was the only U.S. president who managed to pay off the national debt. This achievement highlights the value of being responsible with money. However, Jackson's family struggled to maintain wealth after his death. Teach your kids not to depend on inherited money. The next generation should avoid unnecessary debt and manage loans carefully.
3. Have a Clear Economic Strategy
Jackson had a clear plan for the economy, including his opposition to the Second Bank of the United States, which he believed was too powerful and corrupt. Don’t ignore the importance of sound financial practices, like saving, investing, and planning for the future, to ensure long-term financial health and stability for your family.
4. Do Value Financial Education
The failure of Jackson's adopted son, Andrew Jackson Jr., to maintain the family’s wealth shows the importance of financial knowledge. Andrew Jackson Jr. lost the family's money primarily due to poor financial management and failed investments. He mismanaged the Hermitage plantation, accumulating significant debt, and his attempts to profit from cotton farming were unsuccessful due to market fluctuations and mismanagement. Additionally, he made unwise investments in ventures such as a failed ironworks business, which further depleted the family's wealth. Educate your family not to take short cuts to earn the keep. Growing wealth requires patience and ongoing learning.
5. Be Adaptable
Jackson navigated complex situations successfully, such as his strategic maneuvers during the Battle of New Orleans. Teach your family to be adaptable and ready to adjust financial strategies as needed to respond to changing circumstances such as inflation, job changes, and career opportunities.
In conclusion, my travels through different regions, combined with insights from Andrew Jackson's life, highlight the importance of learning from the past to plan for the future. Sharing these lessons with future generations helps us appreciate America's rich economic history and its impact on today’s society. By understanding regional economies and the legacies of important figures, I hope to contribute to a broader understanding that readers can pass down to their own families, helping them appreciate the complexities and opportunities within our diverse economic landscape.
Thank you for reading!
References
The Statue of Andrew Jackson presented to the United States by the state of Tennessee, 1928
Andrew Jackson's Hermitage
Nashville Museum Music Hall of Fame
Tennessee State Museum
Federal Reserve Bank of Atlanta
Bureau of Economic Analysis (BEA)
Historical references on Andrew Jackson's presidency and financial policies
Economic data from U.S. Census Bureau and other federal sources
Migration statistics from recent studies on corporate relocations
Insights from my travel notes, in-person interviews, and research on regional economies
Disclaimer:
The information provided does not constitute, in any way, a solicitation or inducement to buy or sell securities and similar products. Comments and analyses reflect the views of KW WEALTH MANAGEMENT at any given time and are subject to change at any time. Moreover, they can not constitute a commitment or guarantee on the part of KW WEALTH MANAGEMENT. The recipient acknowledges and agrees that by their very nature, any investment in a financial instrument is random. Therefore, any such investment constitutes a risky investment for which the recipient is solely responsible. All investing is subject to risk, including the possible loss of your money. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or a mix of funds will meet your investment objectives or provide you with a given income level. We recommend that you consult a tax or financial advisor about your situation. KW Wealth is neither a law firm nor a CPA firm; If you have questions concerning the meaning or applications of a particular tax law, you should consult an attorney or a CPA specializing in this area. This material is provided for informational purposes only, and nothing herein constitutes investment, legal, accounting, or tax advice or a recommendation to buy, sell or hold a security. Any views or opinions expressed may not reflect those of the firm as a whole. KW Wealth Management reserves the right to amend or change the content at any time and for any reason at its discretion.
Kimmy Wan, Founder and CEO of KW Wealth Management LLC, has over 25 years of experience in the financial services industry. Kimmy formally served as Vice President-Senior Financial Consultant for Charles Schwab Corporation for 13 years. She also served as Manager of Asia Pacific Relationship Management and a Mutual Fund Operation Analyst for E-Trade Financial Corporation, later acquired by Morgan Stanley. For eight years, she led a team of 20 bilingual stockbrokers to service Asia and Europe, providing necessary industry and market research, data, and risk analysis to mutual fund portfolio managers.
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