Monday, January 25, 2010

Relationships and the Economy

It's funny how everything seems healing when you are searching for things that can heal, especially after experiencing disappointed hopes. I was reading Naked Economics by Charles Wheelan, as part of my assignment for my Governance and Economics class. I not only LOVE this book for its insight into the science of governance and the economy, but also for the little bits of healing I have found and somehow managed to thwart into my own little category of 'failed relationship science and application.' Here is what I learned:

Lesson 1: When discussing financial markets, Wheelan gives an example of being at the grocery store and determining which line is shorter and therefore would be quicker to get through. He determines that, "It's the things you can't predict that matter" (Wheelan, 2002, p. 130). This spurred in me an ah-hah moment especially in relationships and life in general. How BORING would it be if life was predictable...if every relationship went the way I wanted? Predictability lacks excitement.

Lesson 2: Again, referring to the grocery store analogy, Wheelan suggests to "pick a line and stand in it" (Wheelan, 2002, p. 130). I kinda laughed because at this point, I am just waiting for someone to pick my line....and if my assets are "priced efficiently" everyone is better off in the long-run.

Lesson 3: I LOVED this, especially when I thwarted it with my theory. "Human beings make flawed decisions. We are prone to herdlike behavior, we have too much confidence in our own abilities, we place too much weight on past trends when predicting the future, and so on" (Wheelan, 2002, p. 131). How many times have I heard that one or two or even three relationships haven't worked out because so much of it was based on fear? There are a lot of us single people out there who have experienced some tragic (and I am actually being serious, not facetious) relationships. We are on guard, we take time to trust other people, and sometimes what has happened in the past effects current and even potential relationships we can have with other people. Oh, if only we could have confidence that things were going to work out. I think a lot of people lack the faith that it will work out and allow the fear to take over.

Lesson 4: In any economic circumstance, besides saving, investing, diversifying, etc, it is important to take a risk every once in a while. Wheelan stated, "Risk is rewarded-if you have tolerance for it" (Wheelan, 2002, p. 134). Hmm, makes me think that maybe taking risks for a long-term relationship will be a good thing.

Lesson 5: "The odds are stacked in your favor if you are patient and willing to endure the occasional setback" (Wheelan, 2002, p. 135). No explanation needed.

Lesson 6: "Indeed, if we all believe that the economy is likely to get worse, then it will get worse. And if we all believe it will get better, then it will get better" (Wheelan, 2002, p. 157). Just like relationships, if we think they will get worse, then they will. But if we have hope in them and think they will get better, they will.

Lesson 7: "Recession may actually be good for long-term growth because they purge the economy of less productive ventures" (Wheelan, 2002, p. 158). This made me think that failed relationships may actually be good for long-term growth because they purge me of those relationships that could be potentially hazardous for my soul....I am being a little sarcastic, but you catch my drift.

So, all in all, I would have to say that relationships are much like the economy... unpredictable, didactic, exciting, lesson-learning and something to look forward to in the future. And that, ladies and gentleman, is a GREAT study day!

1 comment:

Globe Trecker said...

Gosh! How interesting! I like how you made direct comparisons to the economy and relationships. I'd have never guessed that there would be anything to compare. Who knew?