Ask MetaFilter questions tagged with money and economy

Economics' greatest hits? ... or... Where's the science in economics?

zaebiz — Tue, 23 Jun 2009 12:54:37 -0800

As a former scientist, help me gain some faith in economics. What were the great successes of economics as a tool for making better decisions in the last 100 years? The Queen of England said it best for me : Why did none of the big shot economists see this crisis coming?

Having been scientifically trained, I have always had this belief that economics is a mostly mathematical rationalisation of events after-the-fact with the same predictive capabilities as astrology and whose validity decreases as more people believe in it. Why am I wrong? what demonstrable uses has it had? Also interested in any books or papers discussing either side of this debate.

Should I take a long-term position in which I don't intend to stay?

ramenopres — Sat, 23 May 2009 23:34:18 -0800

Should I take a "career" position in a field in which I don't want to advance so that I can get the money to do what I want to do? Factors:

Recent college graduate.

I know what I want to do. It requires a little money to get started and is a little off the beaten path. My skills are well-suited to it and it makes me happy. There is no question that this is what I want to do; I have both practical and theoretical experience. It may be more of a networking-based, intermittent employment thing, possibly requiring me to pay for things like my own health insurance.

I have interviewed for a job for which I am very qualified. It is an entry-level position with an entity that isn't going anywhere soon (read: good benefits and a future that I could depend on); part of the reason I'm qualified is that the skill set for this job and what I would like to do are similar. The problem is that this is the institutionalized version of what I want to do. The skills don't seem to be immediately transferrable to other work, since at least the first couple of months are spent learning very specific technology. This would be a desk job, and I have always wanted to avoid desk jobs, although --or because-- I'm good at them.

I have some student loans (less than $10,000) and don't like to be in debt.

Once in a place, I suffer from inertia and have trouble moving out. I am concerned that this job could be "good enough"; I worked in an office last year and was surprised by how content I felt. I don't want to settle for being content and am worried that if I start this job I will miss out on opportunities later. However, it offers pretty good pay for an entry-level position (over $30,000/year) and could help take care of those student loans pretty quickly. I am normally all about experience and making connections, but it's tempting to take care of the debt in this case.

I am applying for programs and grants to do what I want to do and would go into this job, in any case, expecting to get out of it within a year or two. I was planning to make this clear in the interview but it never came up. My plan is sort of to pay off the debt, get some savings, and go off to start doing this other thing, having strengthened my skill set in the interim as best I can.

If I didn't take it I would be stuck with the rest of humanity, looking for a job (and I want to move out of my parents' house), but I would also have the flexibility to apply for internships, and the job I took would probably be easier to leave (retail or food).

Other things that might play into this: Is the economy bad enough that it's ridiculous to turn down work? What would enable me to make money and pay off the debt ASAP, or is that not my first priority? What is your experience in trying to pursue something while working full-time in a different field? --did you find those good intentions falling by the wayside? Any advice on doing my very best in this position if I take it? I need practical input here. I've been thinking it might be best to keep following my "dream" and not accept substitutes, but this could be a short track to what I want. I recently turned down a very cool opportunity because it was too good, if that makes sense, and I don't want to do that again.

If offered the position I will of course be forthright (in an intelligent, corporate kind of way) about the fact that I don't see myself continuing in it long-term. I will probably say that I am open to exploring the field (because who knows, right?) but see myself somewhere else in five years.

EconomyFilter: Teenage needs work. A bit apprehensive and unsure on how to get it.

seandq — Thu, 07 May 2009 14:36:03 -0800

EconomyFilter: I'm a sixteen year old desperately needing a part-time or summer job. I can't help but feel bad taking away from those who really NEED it though. Long story short, I just got a car for a late sixteen birthday gift. I've wanted it for a long time, and it's great, but as a condition, my parents would like me to start working to help chip in for insurance, gas, and the car payment as well as my sometimes expensive social life.

The problem is twofold: first off, I feel bad taking what could be a job from someone who really needs it (like someone on WIC or food stamps) away from them (call me a bleeding-heart) and secondly, I'm still hesitant on the idea of work. Don't get me wrong, wherever I'm hired, I'll work diligently and faithfully but I'm still a bit rusty on the process. I've filed ~15 applications for local chain stores (ranging from Walgreens to Books-a-Million to Cracker Barrel) all online via SnagaJob.com and no response at all. Target was courteous enough to email me back saying no.

I have only a few restrictions, but I'm willing to waive them if it's what it takes to get me hired. I'd prefer not fast food, and by fast food I mean McD's/BK. I can humble myself to be a Barista, Burrito Engineer or a Sandwich Artist if it is so. I'd really prefer a job in an environment that's a bit more..intellectual..than McDonald's, but frankly I'll take what's available.

So cliffs for those still with me:
1) I need a good teenage part-time/summer job in this environment.
2) I need to know the best approach for job application - I'd love to have a job where I could submit a resumé, but I'm either underage for a position like that, or they are full-time positions and I'm not dropping out of school, so it's just filling out the form for now.

Thanks for your time. I appreciate it!

$50k for a small business, what do you got?

ibechase — Fri, 20 Mar 2009 19:08:49 -0800

If you were starting a business in the current economic climate and you had $25k-50k start up capital, what type of business would you start? I'm in a situation where I have access to a large amount of cash, plenty of time on my hands and I'm looking to start a business. I have a list of ideas and I'm looking for input on what type of businesses *you* think should be started.

I'm a graphic designer and am comfortable in most facets of business (design, branding, marketing, advertising, bookkeeping, etc.). I'm very computer-saavy and have a very strong work ethic.

I'm going to start a business, so there's no need to tell me how I'd be better off saving the money. I look forward to hearing what you guys think would be great businesses that could be started for $25k-50k and could thrive in the current economy. Thanks for any and all input.

Should my recession dollars go into my 401k, or my wallet?

logovisual — Tue, 17 Feb 2009 15:03:38 -0800

Where is my money doing me, and the world, the most good right now: going into a 401(k), or going into my wallet and getting spent? I'm in my mid-twenties, in a stable but low-paying job that I expect to be in for a while (he said, in a fashion that he hopes does not prove ironic). I am basically living paycheck to paycheck in NYC -- not starving, but not really saving in any meaningful way whatsoever beyond my company 401(k), which has quite a good matching program. For the last couple of years, I've been paying the maximum match into my account, and had built up a reasonable little stash (about a third of my annual salary) only to, of course, watch it take a 30%+ hit over the last few months. I only have a couple thousand dollars in credit card debt, which I would like to pay down/off, but the tight squeeze for what's left over from my paycheck doesn't really allow for that.

I was rebalancing my 401(k) into some less aggressive investments today -- I know that I am young, and there'll be plenty of time for a rebound, but there's no sense in wasting money when you know the market is probably still on its way down -- and began to wonder where my dollar is doing the most good for the economy: going into investments, or going into my wallet to be spent on consumer goods? And yes, that definitely is where it would go if I reduced the percentage of my paycheck that goes into my 401(k): food, home goods, etc.

Thoughts on this matter? I am obviously loath to give up much of the "free money" that comes from a company match, but I am also loath to watch every dollar I put into my 401(k) turn into sixty-five cents when it could turn into a dollar's worth of food, or furniture, or entertainment. And on the larger scale, do I help America more by buying a new couch instead of another share of a mutual fund? Should I reduce (not eliminate) my contribution to my 401(k)? Or stick to business as usual and try to make my budget work another way? I'd like to hear some thoughts that go beyond the conventional wisdom of "you should never ever stop paying into your 401(k)," unless you can make me see that argument in a whole other way.

SallieMae won't cut me a deal, who else will?

SansPoint — Thu, 29 Jan 2009 20:12:25 -0800

How can I consolidate my PRIVATE student loans, to make my financial life a little easier? I recently consolidated my student loans through the Federal Loan Consolidation program. My payments are now over $100/mo less than before, which is wonderful... but I could only consolidate my Federal Loans, the Staffords and such. I have about $40,000^1. in loans through Sallie-god-damn-Mae, though, that I'm paying $250/mo on. I tried consolidating those through Sallie Mae, but $40,000 isn't quite enough to consolidate with them, and now they're not even doing private loan consolidation. This is bad.

There are private loan consolidation places, but... who the hell do I trust to a) be legit, b) not go out of business or go bust due to the stupid economy, c) be *really* legit, d) not screw me over. Honestly, I don't know where to look. This is, as always, where MeFi comes in.

If it helps, right now I make around $30k a year, before taxes, insurance, and other deductions at my day job, and a varying second income of $400-$800/mo (on average) at my night job. Actually, my night job netted me $17,0000 last year, but that was my only source of income and it was five days a week—I'm down to four days a week now. I started my day job in October, after graduating in May. I don't have the cleanest record in borrower history... failing out of college, missing payments due to low income, and general idiocy, but I've begun to make up for it.

Who can I trust to take these private loans, and say, "Buddy, you can pay us $200 a month, instead."? Help!

^1. All told, having only this much in loans isn't as bad as some people, but since I'm working two jobs to make sure my head stays as much above water as it can right now... well, I don't want to hear any finger-waggling on financial irresponsibility.

What people/industry will be the richest after this current depression?

schindyguy — Tue, 02 Dec 2008 16:43:25 -0800

What industry/people came out the richest after the Great Depression? And what industry/people do you predict will be the richest after the one we are headed towards? I don’t mean firefighter, public servant, etc. I am looking for specific people or industries that actually grew larger and many times more profitable as a direct result of the depression.

I remember reading about the robber barons, but don’t know if that was during the depression. And also the short sellers during the first depression.

I know it is kind of capitalistic/evil to be thinking about, but the more important question that I have is who do you think will be the richest after the depression is over? Will it be a industry like technology or a specific group of people?

The reason I ask is because I am fresh out of college and would pursue whatever industry you suggest. I am completely motivated by money (and I know I will hear some comments about that, however please refrain from judging me on this characteristic).

Is penny-wise pound-foolish with replacement filters?

daisyace — Thu, 30 Oct 2008 16:15:58 -0800

With some products, the off-brand is as good as any other brand, sometimes even coming off the same production lines in the same factories. With other products, there is a quality difference between brands. How about for replacement HEPA filters for a Kenmore air cleaner? (And, as a bonus, should I believe the warning against washing and reusing the charcoal pre-filters?) My Kenmore air filter has charcoal prefilters to replace every three months, and a HEPA filter to replace yearly. The Kenmore replacement HEPA filter is $110, while this aftermarket one, for example, is $68 including shipping. Both claim to capture 99.97% of particles down to .3 microns. I picked my air filter carefully based on reading about tested differences in performance, so I don't want to cheap out now if there's a quality difference, but I don't want to pay extra if there's not.

For the bonus question, the charcoal pre-filters come with the warning, "DO NOT try to wash and reuse either the HEPA filter or the pre-filter," but when I take out the pre-filters, they sure look like a good hosing off and a thorough drying in the sun might make them perfectly serviceable again. Would performance be degraded?

How to handle a retro-reduced inheritance?

Anonymous — Mon, 13 Oct 2008 06:28:52 -0800

How to handle a retro-reduced inheritance? This spring I received an inheritance from my grandmother. Initially there was a check to each of us for $n, and later a (much larger) check for %x, the leftover balance. Now I am told that the executor/overseer, her step-son (btw), claims to have made a mistake on the calculations and the % portion was distributed before someone "cashed" one of the $n checks (for $100,000). He is now seeking to recollect on this error. For me, this is to the tune of about $20k.

Perhaps ordinarily I would just shrug and be as helpful as possible. But the timing is odd. After watching my family's portfolios fall nearly 40% in the past few weeks, combined with a suspiciously dispersed inheritance in our family 20 years ago, it is cultivating,harvesting, and curing some weird feelings.

1) Who "overlooks" a $100,000 check? I learned in 6th grade math class to balance a checkbook by what you write out on it, not what is already cashed. If this moron missed this, what else did he miss? How large was the estate in order to miss this?

2) What are my actual obligations? If the check was already cut to me, do I legally owe anything?

3) Obviously, I am seeking legal advice ASAP but wanted any immediate nerd wisdom/questions to ask/etc

4) Tips for negotiating with family that I am socially very distant from? My sister and I are the only surviving islands in this midwest-conservative river. The executor in question's father had framed pictures of Reagan and Bush on his wall. I was essentially shunned from this part of the family at age 15 for having a pierced ear. My sister was not given college funding (as everyone else in the family was) because of her controversial decision to study art instead of home-ec or teaching (the only appropriate options for a woman).

I would really like any guidance, how to talk to a lawyer, what to ask, how to socially handle this, anything. Its just not stuff I want to deal with and I resent that I am even needing to. Thanks for understanding and any possible guidance.

Would I be crazy to invest in a money market account now?

DrDreidel — Tue, 07 Oct 2008 15:39:51 -0800

I want to invest, but I'm a little wary, is a money market the right choice for me? I'm an extremely lucky person. I'm a recent college graduate with no student loans due to a scholarship, and no credit card debt due to having a frugal accountant for a mother. I'm employed with a 401K, but have no savings beyond the few months I've been paying into it.

I'm not one to really spend much money on things I don't need, and my rent is relatively cheap since I have a roommate. As a result, I've been accumulating a good bit of cash in my checking account. My parents have advised me that it might be a good idea to invest in a money market account since they are traditionally very low risk. However I'm feeling apprehensive in this economy.

I understand this is a great time to buy, but I don't fully understand what a money market fund is or how it works. Could someone enlighten me?

How likely is MY bank to fail in the coming months?

croutonsupafreak — Sat, 12 Jul 2008 19:11:52 -0800

How can I evaluate the financial health of a US bank using publicly available records? I know that I'm being paranoid, but the news that the failure of a single US bank could wipe out 10 percent of FDIC's deposit-insurance fund, and that more banks are expected to fail in the coming year, has me worried about the safety of my heard-earned dollars.

I'd like to get a feel for which banks have the most exposure to subprime loans and financial shortfalls because of the housing downturn. Not sure if there's anything else I should consider as I begin my research. How do I begin?

A real economic downturn, or not so much?

bystander — Mon, 05 May 2008 05:05:25 -0800

How is the downturn in the US economy affecting you? I live in Australia, so have limited exposure to the US day-to-day economy, but read a fair bit of US media. If you live in the US you can easily look at a NYT story quoting starving Florida realtors and say "beat up", but from here it is hard to tell what is genuine, and what is exaggerated (or at least unrepresentative) to sell newspapers.
Are MeFi members really finding it tough? Context with a before and after would help understand comments.

converting dollars to cheese!

mustcatchmooseandsquirrel — Mon, 03 Mar 2008 09:13:32 -0800

I'm going to Europe for at least a year in September. When should I convert my dollars to euros? I know that if I were planning on staying in the US, converting money to different currencies would not be the best course of action. But what about in my specific situation?

I will probably be in France from at least September-June (longer if possible). There, I will only be making ~750 euros/month after taxes so I will want to use money that I have saved for this trip to supplement that. But! I'm worried that something awful will happen in the next six months and my US savings will be worth a more meager sum than they already are. (Am I on the wrong track here? Will the economic stimulus package fix everything?)

Would it be totally foolish to transfer my dollars to euros now? If so, when should I do it instead? (and how?)

Is the economy fake?

Effigy2000 — Sat, 02 Feb 2008 01:41:05 -0800

Bill Hicks said, in one of his acts, and I quote "It's gonna fuck up the economy... the economy thats fake anyway!" Is the economy fake? While acknowledging that Bill was talking about drugs and how great they were for altering your perception of reality in this very same act in which he says the economy does not exist, I have started to consider what he meant by that, exactly. He never really went into any further detail on the topic as far as I'm aware.

I have always taken this observation of his to mean that the economy is not real because there is no tangible thing one can touch or see that is called 'The Economy'. To extrapolate, while there is money that one can touch and use to pay for goods and services, money and its value to the economy is only a human construct that does not necessarily need to exist to allow people access to goods and services or for people to live life harmoniously.

Mind you, I'm no economist, so what would I know?

Is this likely what Bill meant? Or is there a different (or deeper) meaning than the one I have construed? And how would an economist refute (or even relate to) Bill's argument?

I ask this question because of a book which I'm writing. As I said, I'm no economist and while I plan to research economics and maybe even interview a few economists to further my work, I'd be interested in hearing the hive minds views (especially from those well versed in economics) to help me find the direction my research should take.

Is a job in Education sheltered from the market?

Anonymous — Wed, 23 Jan 2008 03:11:05 -0800

I have just been offered a staff position at a large University of California campus. Given that my current job is with a small (employees<15) consulting company in the technology field, and given the current national (and global) economic situation; is a UC job more likely to be stable in the next 5 years when compared to one in a small tech company? Also, what's it like to work at a UC? Is the UC system subsidized by the government enough at the state and federal level to make it as secure as a government job?
Will a big CA educational institution weather the inevitable financial storm comparatively better than other sectors?
What is it like to work for a big UC school?
The benefits are good, but is working for an academic institution as political and as slow moving as people say?
What have you experienced as a UC employee?

How does new value created by industry and economy become cash?

SlyBevel — Fri, 28 Dec 2007 21:47:15 -0800

(Possibly Advanced) Economics Filter: How does new value created by industry and economy become money? This question is NOT: "How are freshly-minted dollars sent into circulation?"

It IS: When the industry of a country (we'll use the US here) produces more valuable good and services than there is physical currency to satisfy demand, how does that country's mint get the currency into the hands of those who are entitled to it?

I'm sorry that I'm having a hard time wording this question well. Here's where my confusion comes from:

The US constantly produces more currency. Much of that replaces currency that is removed from circulation due to wear or obsoletion, but in aggregate, I'm assuming that there are more $100 bills in circulation today than there were in, say, 2002. It's granted that the Federal Reserve banks send currency to your local bank so that you can withdraw cash, but that money was already in your hands in another form. Your employer/customer had it stored until you were to be payed, so it didn't come directly from the Treasury.

So how do NEW dollars...ones that are generated by the economy, not yet backed by currency, and then demanded in currency...get distributed?

Dollars to donuts

doctorcurly — Thu, 20 Sep 2007 05:42:04 -0800

Should I be worried about an impending collapse of the US dollar? There's been a lot in the news lately to suggest that the US dollar is headed for even deeper trouble than it's been, starting with various oil-producing countries moving away from the dollar standard, and China's threatening to off-load its stash of dollar reserves.

Any economists out there care to comment?
This question was asked also about a year ago, but the times, they are a-changin'...

We used to support all of our dollars with gold, is there now a paper dollar behind every electronic dollar in the economy?

nameless.k — Mon, 10 Sep 2007 21:19:54 -0800

We used to support all of our dollars with gold, is there now a paper dollar behind every electronic dollar in the economy? Help me settle a bet: are there billions of paper dollars being physically moved between financial institutions? Would we have enough paper cash to go around if everyone withdrew all of their assets and paid off all their loans?

Yen to Pounds : Best Exchange Rates?

0bvious — Thu, 21 Sep 2006 23:35:06 -0800

Currency Exchange: I have a handful of Japanese Yen and a desire the British pound wasn't so strong. What are my best options for getting my Yen converted into Sterling? Any advice as to what I could do with my Yen to increase its Pounds Sterling value?

what the heck is broad and narrow money?

dobie — Wed, 26 Jul 2006 17:57:44 -0800

When economists talk about broad- and narrow-money, what exactly are they talking about?

Which companies own which companies

banished — Wed, 02 Feb 2005 22:20:26 -0800

Is there a chart that shows what major companies own other companies (preferably constantly updated)? A lot of buyouts / mergers have been taking place lately and I'd like to see how the corporate power is centralized / organized. I also seem to recall a site that mapped power relations between powerful corporate individuals, and that would be of interest as well.

A loud flushing sound...

aramaic — Tue, 23 Nov 2004 11:27:23 -0800

FinancialFilter: let's temporarily assume that Stephen Roach is correct, and the US economy is going to collapse. If I have zero debt, but significant dollar-denominated assets, what's my best strategy for handling my affairs? Should I be bulking up on foreign investments, or would they just be dragged down too? Ideas? I'm not a finance wizard, so when someone says "people with debt will be destroyed" it doesn't mean much to me, since I have no debt and don't understand how things ripple throughout the economy.