I like to think of myself as a pretty well-educated person. I have a bachelor's degree (in Linguistics), a master's degree (in International Relations), and a graduation certificate from the Columbia School of Broadcasting. I read widely and voraciously, and keep up on the latest interesting statistics every day by checking "It Is a Numeric Life." I speak German and have traveled widely in Europe and North America. But for all that, I know that there are blank spots in my education, some of them fairly serious.
The most serious is economics.
Now, the way things are in the financial world today, that's a pretty serious deficiency. Happily, one of the many good things about being married to Agnes is that she understands Financial Sanskrit the way I understand German grammar, but better. Between Agnes and our financial advisor (never figured I'd need one of those), we're keeping our heads above the economic water so far. Nevertheless, I often wish I could make my own sense of the barrage of numbers, arcane terms, and bad financial news that hits me every day. Numbers baffle me, and I'm utterly lost in the tide of news about hedge funds, leveraged buyouts, all the various sorts of interest, and the ins and outs of various types of mortgages. To me, liquidity is that warm feeling I get when I wet my pants at the news that our 401(k) has taken another bath because of the greed of those who know more about economics than I do, and use that knowledge to make huge fortunes at my expense.
Wishing, of course, doesn't make it so. I try hard to make sense of the economic news, and I know instinctively that the truth lies somewhere between the Republican view (the economy's great, I've got mine, too bad about you) and the Democratic view (we're all going to be selling apples on street corners by the end of next week). But it's all a blur to me. My baseline understanding of economics is this:
1. If I work (or, at least, don't get caught not working) for 80 hours every two weeks, I'll get paid.
2. The government will take a large chunk of that pay and use it to do many things, some praiseworthy and necessary and others stupid and driven by ideology and greed.
3. I'll get by on the rest.
4. My 401(k) will, eventually, yield something which, in conjunction with my Social Security (if there's anything left in the fund in another 10 years), will have to support us in the style to which we have become accustomed...for another 20 or 30 years or so.
I'm trying hard to make sense of sub-prime mortgage swindles, futures markets, floating exchange rates, and options, but it's hard, and my poor brain just isn't wired for it.
Hope Agnes doesn't decide to leave me...
Have a good day. More thoughts tomorrow.
Bilbo
P.S. - yesterday's post on the revolt of my machines generated quite a few comments, and it's good to know that I'm not alone in my discomfiture with modern technology. Thanks for your words of support...and watch out for sneaky moves on the part of your own machines.
B.
I understand you. I enjoy maths quite a lot (as they are logical and straight-forward) however, when it comes to economics... well, I dont get it. Maybe it is meant on purpose by the economists so the "rest" of us cant get it?
ReplyDeleteIn other subject, I will ask you that, if you ever don´t know what to write about, to explain the American Electoral process? It is quite diferet from the electoral process I know, and everytime I try to understand the American one, I dont get it. I am sure that I will be able to understand you.
Thanks in advance.
I like Logic, but math was never my forte, and I don't touch economics at all. Most of it, and these posts, come across as 'beans' to me. That's what I see when I read about it, that's what I hear when I hear about it.
ReplyDelete"Beans, beans, the magical fruit, the more you eat, the more you toot."
I Think that was from Stephen King's The Gunslinger... of the Dark Tower series.
I just pay my taxes, balance my checkbook, and scan my paystub for discrepancies.