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Price shocks in formative years scar consumption for life

knowledge.wharton.upenn.edu

11–20 of 478 posts

Re: Price shocks in formative years scar consumption for life

#11
My grandmother grew up during the great depression and often went hungry as a child.

Decades later when she had plenty of money she still refused to ever throw anything away. Her huge house was stuffed full of balls of old string, used popsicle sticks, ancient newspapers and wire.

Re: Price shocks in formative years scar consumption for life

#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-old Millennials dropping dead of preventable causes. The American healthcare system has already killed millions, but it's also killed future millions.

Re: Price shocks in formative years scar consumption for life

#13

Yeah, we don't just burn gas driving everywhere. "Scar consumption" as a phrase assumes that consumption in the American style is a healthy activity to begin with, and this outcome is damaging or ugly. "Permanently reduce consumption" would be more worthy of an academic setting, that title is clickbaity. Perhaps some will overdo avoidance of something because of fear of expense. Better than masses overdoing from buil…

Plus, a lot of that gas consumption is spent commuting, which makes people miserable. Murdering the daily commute is a good thing Covid-19 did, although I don't expect it to last long (WFH-ers will get fewer promotions, despite working harder, and eventually RTO fetishists will rule the roost).

Very few people want to "consume gas". They want to be able to live decently and have meaningful jobs. Unfortunately, in today's market, that usually means a shit-ass load [1] of driving.

----

[1] You don't want to know how much time I spent deciding whether to use the more conventional hyphenization ("shit-ass-load") or the version with better cadence.

Re: Price shocks in formative years scar consumption for life

#14

My grandmother grew up during the great depression and often went hungry as a child. Decades later when she had plenty of money she still refused to ever throw anything away. Her huge house was stuffed full of balls of old string, used popsicle sticks, ancient newspapers and wire.

I had a relative that was a child during WWII and they had some very distinctive (borderline maladaptive) 'quirks' ....

One of which is they would never take the last item of anything from out of the fridge (eggs, cheese slices etc) and would become irate if anybody else did. They (much like your grandmother) were also unable/unwilling to throw anything out 'just in case'.

Re: Price shocks in formative years scar consumption for life

#15

It's more that abundance in formative years spoils you for life.

Debateable. The reason rich kids turn into such pieces of shit isn't material abundance (since, after all, anyone born before ~1990 in the middle class also experienced material abundance) but the unearned high social status and the impunity that comes with it.

Deprivation and poverty, on the other hand, fuck people up severely--often, through no fault of their own--and there's tons of empirical evidence showing this.

Re: Price shocks in formative years scar consumption for life

#16
post #3

"“Those who came of driving age during the oil crises of the 1970s drive less in the year 2000,” the paper found. The doubling of gasoline prices in the late 1970s saw that generation drive 3.6% to 8.7% less than those born earlier or later" I can't find the paper, but when they say "born earlier or later" are they still looking at rate of driving in the year 2000? If so, aren't they just comparing ages? People born…

Link to Full paper https://cseveren.github.io/files/FormativeExperiences_Paper_... if that helps?

Maybe I’m going nuts but it looks like they used 2000 US Census data on driving, so yes, they only looked at that year.

They are literally comparing people who are older and younger with the cohort in question, so confounding results with how driving changes at various ages.

Re: Price shocks in formative years scar consumption for life

#17

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.

> 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 football in our living room with my dad since it was entirely empty) with most of our stuff coming from charities.

I wonder if I exhibit the behavior you talk about or not.

Re: Price shocks in formative years scar consumption for life

#18

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.

Had this problem

Easy solution

take a few hundred from the bank and physical set it on fire

keep doing it until you don’t care

it’s illegal but it works

Re: Price shocks in formative years scar consumption for life

#19
post #16

Earlier quoted context omitted.

Link to Full paper https://cseveren.github.io/files/FormativeExperiences_Paper_... if that helps?

Maybe I’m going nuts but it looks like they used 2000 US Census data on driving, so yes, they only looked at that year. They are literally comparing people who are older and younger with the cohort in question, so confounding results with how driving changes at various ages.

> it looks like they used 2000 US Census data on driving, so yes, they only looked at that year

The first major sentence under data:

“The decennial census asks questions about commuting mode and time. ‘Journey to Work’ questions appear in the 1980, 1990, and 2000 censuses, and in the American Community Survey (ACS) (Ruggles et al. 2020). We use data from these three censuses, as well as the 2006/10, 2011/15, 2016, and 2017 ACS” [1].

Confirmation bias much [2]?

[1] https://cseveren.github.io/files/FormativeExperiences_Paper_... bottom of page 6

[2] https://en.m.wikipedia.org/wiki/Confirmation_bias

Re: Price shocks in formative years scar consumption for life

#20
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…

My grandma did this. Never left a penny on the sidewalk, always took the bread from a breadbasket home. Even my parents absorbed some of that behavior despite being born in the next generation.
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