Housing crash. People don't want to sell their house for less than they bought it for. You don't pay capital gains on the first 250K / 500K per couple of gains on a primary residence but you can't deduct losses or use them to offset other capital gains. In addition people are conditioned not to believe they had a loss until they realize it and of course there are underwater homeowners. You can't move if you can't sell the house you live in.
The Mystery of Our Declining Mobility
21–26 of 26 posts
Re: The Mystery of Our Declining Mobility
#22I'd guess it has to do with a few things that are not at all related to the recession... 1) Globalization - the lessons learned and processes formed from globalization have in a sense come back to be applied domestically. Increasingly dominant corporations usually have numerous satellite offices to be able to tap the talent and resources throughout the country. For example if you are a Finance guy and you want to wor…
Regarding number #2, do you have data for that or is it more anecdotally? The reason I ask is that you could be experiencing it more due to age. I have read that as we get older, it becomes harder to develop close friendships, so you will find it harder to find friends now compared to 20 years ago. Just a possible explanation, might not be true in your case.
Re: The Mystery of Our Declining Mobility
#23I'd guess it has to do with a few things that are not at all related to the recession... 1) Globalization - the lessons learned and processes formed from globalization have in a sense come back to be applied domestically. Increasingly dominant corporations usually have numerous satellite offices to be able to tap the talent and resources throughout the country. For example if you are a Finance guy and you want to wor…
There other "stickiness" factors. One is that the population is increasingly aged and the exorbitant cost of healthcare means a greater incentive to stick with an existing employer, and possibly even existing doctors.
The other is housing prices which are ever greater compared to median income. That makes moving a far greater financial hurdle, and making an initial purchase far more significant. (As a thought exercise consider how you would behave differently if house prices were a tenth of what they are now, or tens times as much.)
Education would seem to be another issue as (other than private schools) you have to move to where the schools are and then stay there.
I believe average lengths of employment at any one employer are also going down. Consequently the costs of movement versus the benefits of that period of employer are higher.
Re: The Mystery of Our Declining Mobility
#24Housing crash. People don't want to sell their house for less than they bought it for. You don't pay capital gains on the first 250K / 500K per couple of gains on a primary residence but you can't deduct losses or use them to offset other capital gains. In addition people are conditioned not to believe they had a loss until they realize it and of course there are underwater homeowners. You can't move if you can't sel…
> but you can't deduct losses or use them to offset other capital gains.
Not to mention: Underwater folks cannot sell if they can't afford to bring money to the table.
And now that everyone who short-sells will be receiving a 1099 (after Jan1) for forgiven debt, there's going to be another disincentive.
Fun times.
Re: The Mystery of Our Declining Mobility
#25I'd guess it has to do with a few things that are not at all related to the recession... 1) Globalization - the lessons learned and processes formed from globalization have in a sense come back to be applied domestically. Increasingly dominant corporations usually have numerous satellite offices to be able to tap the talent and resources throughout the country. For example if you are a Finance guy and you want to wor…
Regarding number #2, do you have data for that or is it more anecdotally? The reason I ask is that you could be experiencing it more due to age. I have read that as we get older, it becomes harder to develop close friendships, so you will find it harder to find friends now compared to 20 years ago. Just a possible explanation, might not be true in your case.
Its anecdotal and Im sure getting older influences my opinion.
Im also one of these people who thinks Facebook creates a lot of weak ties in replacement of fewer stronger ties between people. No idea if Im wrong or right but despite the many good things technology has brought I wonder if its subtly making many of us more lonely on an individual/cognitive level.
There are also a number of cultural/social changes that influence my opinion. Real integrated communities within America seem increasingly rare, there seems to be less trust in "strangers", little to no focus on the common good, increased focus on one's self - on top of it you could argue that we have less of a need for certain types of relationships due to modernization.
Re: The Mystery of Our Declining Mobility
#26I'd guess it has to do with a few things that are not at all related to the recession... 1) Globalization - the lessons learned and processes formed from globalization have in a sense come back to be applied domestically. Increasingly dominant corporations usually have numerous satellite offices to be able to tap the talent and resources throughout the country. For example if you are a Finance guy and you want to wor…
Regarding number #2, do you have data for that or is it more anecdotally? The reason I ask is that you could be experiencing it more due to age. I have read that as we get older, it becomes harder to develop close friendships, so you will find it harder to find friends now compared to 20 years ago. Just a possible explanation, might not be true in your case.
>I have read that as we get older, it becomes harder to develop close friendships
Hm. this is the opposite of my experience. As I've grown older, my social skills and judgment have gotten significantly better. A huge deal, really.
Yeah, good relationships need time to marinate, so the sooner you start, obviously, the sooner that marination process can start, and all other things being equal, the relationship that has properly marinated longer is going to be better, I mean, assuming you didn't let it dry out. But I'm just so much better now than I was when I was younger, and it seems that the people I meet are, too.