Live data from Hacker News

Price shocks in formative years scar consumption for life

knowledge.wharton.upenn.edu

171–180 of 478 posts

Re: Price shocks in formative years scar consumption for life

#171
post #108

Earlier quoted context omitted.

>So I just hoard cash like an idiot as that makes me feels safe and lets me sleep well at night. If you haven't already, look into Certificates of Deposit ("CD") at your local bank. They're FDIC insured (so if the bank goes under, you're covered, up to something like $250k) and you don't have to worry about losing the principal amount you put in. If you ever need to withdraw that money in case of an emergency, you on…

Are interest rates high enough again to make laddering worth it?

No. But if you're going to hoard cash, laddering is a slightly better way to do so.

Re: Price shocks in formative years scar consumption for life

#172

Being poor in general, during your childhood, scars you for life. It makes you penny wise and pound foolish, adverse to taking risks in your career and investments, can destroy your confidence in yourself, while always having to look over your shoulder monetarily speaking. Habits that even after you remove poverty from your live, you still feel the the anxiety and triggers in your head.

Another way of stating that article is that most people in their 20s and 30s have only ever known low-inflation and stability. Those in their mid-40s onwards are possibly young enough to remember how what their parents dealt with in the 70s.

Re: Price shocks in formative years scar consumption for life

#173

My grandparents didn’t go hungry this year (after Russia’s invasion) because they had a cellar full of preserves. For them, it was part of a tradition of hunger, a “never waste food” mentality reinforced by WWII, and Holodomor prior, and WWI prior, and the experience of being serfs prior to that.

> WWI prior, and the experience of being serfs prior to that

They may be quite old!

Re: Price shocks in formative years scar consumption for life

#174
post #108

Earlier quoted context omitted.

>So I just hoard cash like an idiot as that makes me feels safe and lets me sleep well at night. If you haven't already, look into Certificates of Deposit ("CD") at your local bank. They're FDIC insured (so if the bank goes under, you're covered, up to something like $250k) and you don't have to worry about losing the principal amount you put in. If you ever need to withdraw that money in case of an emergency, you on…

Are interest rates high enough again to make laddering worth it?

That's for you to assess based on your risk profile. My answer is at the moment it's not worth it

Re: Price shocks in formative years scar consumption for life

#175
post #139

Let's extend this a little further. If we accept that events in life can scar or even just affect you for life (as this article claims) then why stop there? These people have children. Do you think that habits that form out of trauma, housing insecurity, food insecurity or were in fear of their lives don't subconciously impact their children? We don't even have to imagine that. We have physical evidence that the cond…

At least from the conversations I've heard about this topic, the issue isn't acknowledging that slavery and Jim Crow has caused problems for generations of blacks. The problem comes when measures to address it are discussed, like reparations or quotas. People see it as monumentally unfair because, while being black is a handicap, it's only one of many that are too endless to enumerate. For example, there is no affirmative action for poor whites who grow up in broken homes. There is no affirmative action for simply having parents who are a standard deviation below the population in IQ. Insofar as student spots at high-tier institutions go, here poor whites see favorable action to benefit blacks when they themselves never played a part in their oppression. Black, well-spoken immigrants from Nigeria who never experience discrimination in their home countries get benefits merely by dint of their skin color, and not actual suffering.

Even if you limited it to some way to only US blacks who could prove lineage to an actual enslaved individual, suffering is difficult, if not impossible, to quantify. So... why action on this topic is politically impossible. I think color-blind welfare policies based on economic resources would be much more feasible, but... good luck raising taxes to increase the size of the welfare state.

Re: Price shocks in formative years scar consumption for life

#176
post #12

I worked in a grocery store in the late '90s, and the older customers (who grew up in the Great Depression) always carried penny pouches, because they remembered a time when one had to keep track of cents to survive. This is how I know that, even if we miraculously fixed our medical system tomorrow and outlawed private health insurance by a constitutional amendment, we'll still have, thirty years from now, 60-year-ol…

Doctors say they are the only profession that saves lives. Well they're the only profession allowed to save lives. And the only profession making money saving lives. Charging for saving lives. Price discriminating to save lives. What happens when they make a mistake in what someone is able to pay? EDIT (I tried replying but can't yet): The basic solution to make medicine cheaper is supply more medics. In Chile anybod…

> Doctors say they are the only profession that saves lives...

Yeah. Because rescue workers, fire fighters, EMT's, nurses, etc., etc. don't count. (As if the ways in which America's medical establishment treats those people didn't make that obvious enough. And the alpha sociopath in the room always deserves 100% of the credit for anything good happening...right?)

My impression is that other countries (ones not poisoned by the AMA) don't have this particular problem nearly so much.

Re: Price shocks in formative years scar consumption for life

#177
post #17

Earlier quoted context omitted.

> It makes you penny wise and pound foolish while always having to look over your shoulder monetarily speaking. Could you explain what you mean? I grew up pretty poor, single income PhD student/post-doc salary family with two kids. Eventually my father got a proper position at a university, but until then we were pretty poor. My parents used to sleep on the floor, we had almost no furniture(I remember playing footbal…

>Could you explain what you mean? Sure. I realize I waste a lot of time in supermarkets, shops or online stores, browsing/walking around and comparing prices just to penny pinch on low value things, when the savings I would make would have no meaningful impact on my yearly net worth, but the time and mental energy wasted browsing/walking around comparing prices could have better return on investment if used on other…

> I'm afraid to make investments fearing that the market could crash the second I enter it, and erase my money, leaving me vulnerable to being homeless or dependent on doing shitty jobs I hate just to stay afloat, so I just hoard cash like an idiot as that makes me feels safe and lets me sleep well at night.

Blended funds! You can choose what % of your money is invested at various risk levels. Choose a fund that puts only a fraction of your money in stocks, money markets, CDs, etc., and finally cash.

Re: Price shocks in formative years scar consumption for life

#179

Earlier quoted context omitted.

Plenty of us didn't always have 'a couple hundred cash' at all, much less 'free' to just carry around 'in case of emergency'. I can now , but don't for the most part, partially because of decades of not being in that position. We have a modest amount of cash on hand at home - we sometimes pay service folks in cash, or can tip a delivery person now and then, but those are rare instances. Neighbor kids selling door to…

> If there's earthquake/hurricane/etc with resulting power outages, most of the places I'd go to wouldn't be able to even open their POS systems to take cash in the first place. Businesses or anyone wanting to get paid will figure out an alternative. Dealing with cash is not complicated.

I worked at a fast food place where our power went out. They forced us to keep ... open and selling anyway. The 240v was out so no grill, but 120 outlets worked so we could make coffee/tea. That was about it. Cash registers didn't work. I was writing everything by hand, calculating tax, etc, keeping records.

2 hrs later, the regional manager - WHO HAD TOLD US IN NO UNCERTAIN TERMS THAT WE HAD TO REMAIN OPEN DESPITE NOT HAVING POWER - came in and chastised me for 1) not wearing the full uniform (we had no AC and it was July, so I took off the tie) and 2) handling money without a register. "You can't guarantee your numbers are right - that's what computers are for". "But... they're down, and you said to stay open and keep selling". "That doesn't change the fact that you might be making mistakes!"

Insanity.

Re: Price shocks in formative years scar consumption for life

#180
post #173

My grandparents didn’t go hungry this year (after Russia’s invasion) because they had a cellar full of preserves. For them, it was part of a tradition of hunger, a “never waste food” mentality reinforced by WWII, and Holodomor prior, and WWI prior, and the experience of being serfs prior to that.

> WWI prior, and the experience of being serfs prior to that They may be quite old!

> it was part of a tradition
Post reply on HN