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Why So Many Rich People Don’t Feel Very Rich

economix.blogs.nytimes.com

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Re: Why So Many Rich People Don’t Feel Very Rich

#161

Post by tptacek »

endtime wrote: post #139
meterplech wrote: post #108

Earlier quoted context omitted.

I definitely get this viewpoint- but I would like to add that per gp comment, you should be satisfied with your lot. Which for some people may mean spending money on some things. I've noticed on HN and other sites a fascination with acquiring wealth. I understand why, but in the end you acquire wealth for the utility you can gain from using it. Obviously, this doesn't need to mean spending 5k on the biggest TV, and d…

It's also nice for your kids not to need to take out college loans.

It's also nice for them not to have to build a down payment for a house. Where does this logic end?

Re: Why So Many Rich People Don’t Feel Very Rich

#162

Post by RickRoll »

nkurz wrote: post #147
RickRoll wrote: post #137

Earlier quoted context omitted.

Do you think mid-level doctors, lawyers, bankers don't take risks on their job?

Yes, in the financial context they have a low risk profession. They can have greater than 90% confidence that if they do the same thing they did the previous year (likely, working very hard at a task they are very skilled in), that they will earn about the same amount they earned that year, usually adjusted up for inflation. Do you disagree, or are you using some other definition of risk?

If you don't know much about a given job it looks low risk. But a successful doctor, etc. have taken many risky decisions, with not enough information.

Re: Why So Many Rich People Don’t Feel Very Rich

#163

Post by randallsquared »

msluyter wrote: post #31
jellicle wrote: post #10

It's simple. Make $100K, live near people making $90K = rich. Make $100K, live near people making $110K = poor.

I believe there have been psych studies to this effect. Asked whether you'd rather make 110k when everyone else is making 80k, vs. 140k when everyone else is making 200k -- assuming prices remain constant, which is economically dubious, of course, but hey, it's a thought experiment -- and most people choose the former. Here's another study to that effect: http://www.telegraph.co.uk/science/science-news/3315638/Rela..…

For one, the classical homo-economimus model of humans as rational utility maximizers is further called into question.

While I wouldn't argue that humans are rational utility maximizers, this result doesn't call that into question in and of itself: there could easily be utility functions which depend on relative status or position, rather than absolute material wealth.

Re: Why So Many Rich People Don’t Feel Very Rich

#164

Post by endtime »

tptacek wrote: post #161
endtime wrote: post #139

Earlier quoted context omitted.

It's also nice for your kids not to need to take out college loans.

It's also nice for them not to have to build a down payment for a house. Where does this logic end?

I don't understand what you're trying to imply. My point is just that money is useful and it can make your life and the lives of your family easier, and that there are reasons for wanting it other than not being Buddhist enough.

Re: Why So Many Rich People Don’t Feel Very Rich

#165

Post by RickRoll »

sploink wrote: post #149
RickRoll wrote: post #137

Earlier quoted context omitted.

Do you think mid-level doctors, lawyers, bankers don't take risks on their job?

Personal risk, yes. Malpractice is covered by insurance. Bankers risk their clients' money, not their own (for the most part). As long as they perform their job competently, there is little risk compared to an entrepreneur who has had to quit their job and invest their personal funds into their venture.

Really? How about the risk, that one won't be able to complete his degree, after investing a lot of money and time? Or that he'll make a mistake, which will get him blacklisted from good jobs.

One knows all the risks involved in his job, and few in other's jobs.

Re: Why So Many Rich People Don’t Feel Very Rich

#166

Post by tptacek »

endtime wrote: post #164
tptacek wrote: post #161

Earlier quoted context omitted.

It's also nice for them not to have to build a down payment for a house. Where does this logic end?

I don't understand what you're trying to imply. My point is just that money is useful and it can make your life and the lives of your family easier, and that there are reasons for wanting it other than not being Buddhist enough.

I'm saying you can justify a near arbitrary amount of acquisitiveness in the name of your kids lifestyles.

Generally I think acquisitiveness is fine as long as it doesn't come at society's expense. But, I also think a lot of benign-seeming acts by acquisitive people come at a subtle significant cost to society; e.g., supporting the repeal of the estate tax.

Re: Why So Many Rich People Don’t Feel Very Rich

#167

Post by johngalt »

rapind wrote: post #112
edw519 wrote: post #8

Every time I read an article like this, I think of all the people I know who are well off, yet appear to be miserable. Then I want to share with them this old wisdom from "The Ethics of the Fathers": "Who is wise? One who learns from every man." "Who is strong? One who overpowers his inclinations." "Who is honorable? One who honors his fellows." "Who is rich? One who is satisfied with his lot."

Agreed. It's all relative. Happiness = Success / Expectations

Imaginary happiness = sqrt(negative expectations)

Re: Why So Many Rich People Don’t Feel Very Rich

#168

Post by chc »

zyfo wrote: post #157
edw519 wrote: post #8

Every time I read an article like this, I think of all the people I know who are well off, yet appear to be miserable. Then I want to share with them this old wisdom from "The Ethics of the Fathers": "Who is wise? One who learns from every man." "Who is strong? One who overpowers his inclinations." "Who is honorable? One who honors his fellows." "Who is rich? One who is satisfied with his lot."

"The secret of happiness, you see, is not found in seeking more, but in developing the capacity to enjoy less ." - Socrates

Do you know what dialog this came from?

Re: Why So Many Rich People Don’t Feel Very Rich

#169

Post by chc »

RickRoll wrote: post #162
nkurz wrote: post #147

Earlier quoted context omitted.

Yes, in the financial context they have a low risk profession. They can have greater than 90% confidence that if they do the same thing they did the previous year (likely, working very hard at a task they are very skilled in), that they will earn about the same amount they earned that year, usually adjusted up for inflation. Do you disagree, or are you using some other definition of risk?

If you don't know much about a given job it looks low risk. But a successful doctor, etc. have taken many risky decisions, with not enough information.

Bearing in mind that we are talking strictly in the financial sense — and not, for example, about risky medical decisions — can you explain what you're talking about further? What major risky investments do doctors make on a regular basis?

Re: Why So Many Rich People Don’t Feel Very Rich

#170

Post by chc »

adestefan wrote: post #79
asmithmd1 wrote: post #21

Earlier quoted context omitted.

or: make $100k, spend $85k = happiness make $100k, spend $101k = misery

The spend side is highly dependent on those around you. Make $100k while your neighbors make $75k - rent is $800/month. Make $100k while your neighbors make $125k - rent is $1500/month.

This is true for way more than rent, too. Gas is another obvious one, but it's still just scratching the surface — prices for a huge range of things rise subtly (or not so subtly) in more affluent areas.
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