recess is in
Bullied at the pump. Wall Street is sinking. Unemployment is jumpy. Foreclosing the inevitable.
Damn...I guess I won't buy my boat.
We are about to enter (or as many state "are already in") a recession. What got us here in the first place? Sure you have the rising middle class overseas, but it seems a strong case can be made for. . . feelings. A fascinating article/study published in the LA Times best demonstrates my feelings on the major cause of this recession.
the article states:
-------
"Would you rather earn $50,000 a year while other people make $25,000, or would you rather earn $100,000 a year while other people get $250,000? Assume for the moment that prices of goods and services will stay the same.
Surprisingly -- stunningly, in fact -- research shows that the majority of people select the first option; they would rather make twice as much as others even if that meant earning half as much as they could otherwise have." 1.
-------
The article concludes with this statement:
"When it comes to money, as in most other aspects of life, reason and rationality are trumped by emotions and feelings."
I feel this article best describes our peculiar buying habits such as the need to buy a home we can't afford, or purchase impractical things such as the SUV (granted this is a generalized statement, practical reasons exist). With emotions playing such a vital role in these major decisions, and jealousy being such a strong emotion. It's no wonder our economy is in the condition it is in. Interesting that one of the ten commandments contains such strong economical advice (part about not coveting).
Since we can't rely on our emotions to make the rational buying decision for us. It is best that we do enter a recession. Changes have been needing to take place for some time now, such as improved technology in the automotive industry, or perhaps our glutenous/expensive habits of eating out. Sure times are changing and adjusting, and thanks to the inevitable recession we are about to enter (or have already entered), things will change for the better. I welcome this recession. It is painful the extra costs. But like the temporary pain of taking off a bandaid, things will improve. Feelings of the pain will change demand. Consumer demand changes everything.
. . . now to buy my boat
1 "Why people believe weird things about money" Michael Shermer, Los Angeles Times, Opinion, January 13, 2008. link
Damn...I guess I won't buy my boat.
We are about to enter (or as many state "are already in") a recession. What got us here in the first place? Sure you have the rising middle class overseas, but it seems a strong case can be made for. . . feelings. A fascinating article/study published in the LA Times best demonstrates my feelings on the major cause of this recession.
the article states:
-------
"Would you rather earn $50,000 a year while other people make $25,000, or would you rather earn $100,000 a year while other people get $250,000? Assume for the moment that prices of goods and services will stay the same.
Surprisingly -- stunningly, in fact -- research shows that the majority of people select the first option; they would rather make twice as much as others even if that meant earning half as much as they could otherwise have." 1.
-------
The article concludes with this statement:
"When it comes to money, as in most other aspects of life, reason and rationality are trumped by emotions and feelings."
I feel this article best describes our peculiar buying habits such as the need to buy a home we can't afford, or purchase impractical things such as the SUV (granted this is a generalized statement, practical reasons exist). With emotions playing such a vital role in these major decisions, and jealousy being such a strong emotion. It's no wonder our economy is in the condition it is in. Interesting that one of the ten commandments contains such strong economical advice (part about not coveting).
Since we can't rely on our emotions to make the rational buying decision for us. It is best that we do enter a recession. Changes have been needing to take place for some time now, such as improved technology in the automotive industry, or perhaps our glutenous/expensive habits of eating out. Sure times are changing and adjusting, and thanks to the inevitable recession we are about to enter (or have already entered), things will change for the better. I welcome this recession. It is painful the extra costs. But like the temporary pain of taking off a bandaid, things will improve. Feelings of the pain will change demand. Consumer demand changes everything.
. . . now to buy my boat
1 "Why people believe weird things about money" Michael Shermer, Los Angeles Times, Opinion, January 13, 2008. link
posted by ryan at
8:58 AM
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