I stole this from a very close friend of mine (if she reads this, she'll know who she):
"Some women choose to follow men and some women choose to follow their dreams. If you're wondering which way to go, remember that your career will never wake up and tell you that it doesn't love you anymore." - Lady GaGa
As a recent graduate, I've been plagued with huge amounts of anxiety and uncertainty about my future. I have a long-term goal of being an Economist, and like my step mom told me today that is a goal of mine and there several steps to getting there. I've just been so scared that i'll never be able to achieve the next step to getting there (whether it's grad school or becoming a research assistant) and there will be this huge domino effect. I don't want to look in the mirror 10 years from now and realize I'm a huge failure.
I say all of this because with this anxiety and uncertainty, so many other factors come into play, like love. We've all been victim to the opposite sex in one form or another. Whether it is losing yourself by being in a relationship, sacrificing your ideals, who you are, or your priorities for the one who tickles your fancy, or simply playing hookie from work/school because you can't seem to pry yourself away from the beautiful person laying in bed next to you, we've all been there. There may be no one else you'd rather be with than that person, but in the end if that individual wakes up one morning and tells you they don't "love you anymore" or they just "see you as a friend", it all of a sudden doesn't seem worth it does it?
This blog may seen overly sentimental and entirely non-economical, but it has a point. My point is, to me, the opportunity cost of love -at my age and at my stage in my life- is the time and energy I could be putting into achieving my goals. It is the job offers or grad school acceptances I may miss out on because I chose to put my energy into being with someone rather than committing to achieving my dreams. On the other hand, the opportunity cost of chasing my dreams is happiness. Love brings you utils (a unit of satisfaction in Economics) and by choosing to chase your dreams instead of choosing to chase love, you lose out on that. With that said, I love love and I enjoy being in a relationship. At this point, I would love to have those extra utils in my life, but like our wise Lady Gaga said, your career isn't going to wake up one morning and tell you "it's not you, it"s me".
To all those women who woke up one day and were told they weren't loved anymore,
Your aspiring Economist
Post-script: Trust me, if I could have it all I would. But remember, there are always too many wishes and too little genies to make them all come true.
Wednesday, March 24, 2010
Lou Dobbs and “Ignorant so and so’s”
I was thinking of a topic to discuss for today's blog and remembered watching a video last quarter in my Personnel Econ class about the United States and outsourcing. The video was from "Lou Dobbs Tonight" on CNN and talked about how outsourcing is terrible for America and has been hurting the domestic job market. It particularly highlights Nielsen, the world’s leading marketing and media information company. Nielsen has a 1.2 billion dollar outsourcing contract over the next 10 years (for both technological and operational labor) with TaTa Consultancy Services (an outsourcing company, among other things).
So, how much do you think outsourcing has affected our economy and the amount of jobs in the U.S.? More importantly, is it "un-American"? When I was first posed with these questions in my Personnel Econ class last quarter, I thought America was losing a lot of jobs and our economy has really been affected (or would be heavily affected).
However, to my chagrin the Bureau of Labor Statistics (in 2004) reported that only 1.9% of jobs lost in mass layoffs were associated with out-sourcing or movement of jobs to other countries.
So, unlike the video stated, Lou Dobbs may be the “ignorant so-and-so”. Outsourcing as of 2004, hasn’t even accounted for 2% of mass job layoffs in the United States. Economically, outsourcing is just another form of free trade and comparative advantage (the ability to produce a product most efficiently given all the other products that could be produced). If a firm can go elsewhere for simple data entry and basic programming - and the firm is profit maximizing - they should do so. Policies aimed at preventing trade, like outsourcing, would lower the standard of living for both Americans and the citizens of developing countries and can make firms inefficient and face higher production costs. Overall, an open market trading system is generally viewed by the economic world as a positive contribution to economic prosperity.
Glad Lou Dobbs left CNN,
Your aspiring Economist
Post-script – Watch Lou Dobbs:
http://www.youtube.com/watch?v=96Yo5Fi4sTk&feature=related
Post-post script - The Politics and Economics of Offshore
Outsourcing (American Enterprise Institute for Public Policy Research):
http://www.aei.org/docLib/20051208_WP122.pdf
So, how much do you think outsourcing has affected our economy and the amount of jobs in the U.S.? More importantly, is it "un-American"? When I was first posed with these questions in my Personnel Econ class last quarter, I thought America was losing a lot of jobs and our economy has really been affected (or would be heavily affected).
However, to my chagrin the Bureau of Labor Statistics (in 2004) reported that only 1.9% of jobs lost in mass layoffs were associated with out-sourcing or movement of jobs to other countries.
So, unlike the video stated, Lou Dobbs may be the “ignorant so-and-so”. Outsourcing as of 2004, hasn’t even accounted for 2% of mass job layoffs in the United States. Economically, outsourcing is just another form of free trade and comparative advantage (the ability to produce a product most efficiently given all the other products that could be produced). If a firm can go elsewhere for simple data entry and basic programming - and the firm is profit maximizing - they should do so. Policies aimed at preventing trade, like outsourcing, would lower the standard of living for both Americans and the citizens of developing countries and can make firms inefficient and face higher production costs. Overall, an open market trading system is generally viewed by the economic world as a positive contribution to economic prosperity.
Glad Lou Dobbs left CNN,
Your aspiring Economist
Post-script – Watch Lou Dobbs:
http://www.youtube.com/watch?v=96Yo5Fi4sTk&feature=related
Post-post script - The Politics and Economics of Offshore
Outsourcing (American Enterprise Institute for Public Policy Research):
http://www.aei.org/docLib/20051208_WP122.pdf
Monday, March 22, 2010
Monetary Policy and the Zen Master
Let me just start this blog off by saying I like Alan Greenspan. A lot. I aspire to be a tenth of the Economist he has proven himself to be and if I could become anything in the world it would be Chairwoman of the Federal Reserve (shoot for the moon and land among the stars right?). So, I really like this particular cartoon. It also pertained to something I learned in Monetary Economics: The “just do it strategy”. Alan Greespan’s reign in the 1990’s was deemed wildly successful for its ability to maintain low and stable inflation (around 2%). The "just do it" strategy is having a target but no particular nominal anchor (unlike monetarism, inflation, or interest rate targeting). This type of strategy relies heavily on forward-looking behavior and pre-emptive strikes based on expectation, among other markers.
Although Greenspan achieved success with this type of approach, there are two disadvantages: (1) it is non-transparent and lacks accountability of the central bank (the Fed) and (2) its success relies upon those in charge of monetary policy (can those in charge successfully identify future movements in the economy and act accordingly?).
Will Ben Bernanke be successful in his “preemptive strikes” should he choose to follow in Greenspan’s footsteps? I’m not one to say for certain at this point, but I will say this: I like Ben Bernanke too.
Nike wasn't the only one "just doing it",
Your aspiring Economist
Post-script: Frederick Mishkin and the “Just do It” strategy:
http://www.nber.org/reporter/winter02/mishkin.html
Sunday, March 21, 2010
Economics and Accounting
“Economists are people who work with numbers but don't have the personality to be accountants.” - Anonymous
Present Value and Purchasing Power
On Friday, I watched a video clip on the food shortage and hyper-inflation occurring in Zimbabwe. It was about Zimbabweans who instead of enjoying their “golden years” are merely waiting to die because of the country’s dire economic status.
The video brought me to tears to learn that these retirees who diligently saved their entire working lives have a bank account full of worthless money due to hyper-inflation. To highlight the desolate situation, pension in the country pays $1 million Zimbabwe dollars per month (worth less than one U.S. cent), but a sack of onions cost $30 million. How incredibly heartbreaking is it to think of a senior citizen, or ANY individual for that matter, who did all the right things, worked hard and saved money, to find out their hard work is rendered useless and their pension even more so?
So, what is the answer to hyper-inflation? On one hand, the answer is clear: simply stop printing money (contractionary monetary policy). By reducing the money supply, in the long run we reduce price levels → deflation. The tightening of monetary policy will also strengthen the Zimbabwean dollar and possibly make the currency viable once more. On the other hand, we can’t just press the off button on the printer and expect everything to get better. Zimbabwe, like many poor countries, finds itself in the dismal economic abyss known as the "poverty trap". Solve this problem and you can consider yourself the next Nobel Prize winner.
On a lighter note, the previous paragraph reminded me of another video I watched on Youtube. It was a speech by Alan Greenspan. While introducing Greenspan, the presenter made a comment about wishing Economists were one-handed. If economist were one-handed then when pressed for answers on economic issues they wouldn’t be able to say, “Well, on one hand this, but on the other hand that”.
Glad she has two hands,
Your aspiring Economist
Post-script - If anyone wants to watch the Zimbabwean video:
http://www.youtube.com/watch?v=I20UNlC6qWY&feature=related
The video brought me to tears to learn that these retirees who diligently saved their entire working lives have a bank account full of worthless money due to hyper-inflation. To highlight the desolate situation, pension in the country pays $1 million Zimbabwe dollars per month (worth less than one U.S. cent), but a sack of onions cost $30 million. How incredibly heartbreaking is it to think of a senior citizen, or ANY individual for that matter, who did all the right things, worked hard and saved money, to find out their hard work is rendered useless and their pension even more so?
So, what is the answer to hyper-inflation? On one hand, the answer is clear: simply stop printing money (contractionary monetary policy). By reducing the money supply, in the long run we reduce price levels → deflation. The tightening of monetary policy will also strengthen the Zimbabwean dollar and possibly make the currency viable once more. On the other hand, we can’t just press the off button on the printer and expect everything to get better. Zimbabwe, like many poor countries, finds itself in the dismal economic abyss known as the "poverty trap". Solve this problem and you can consider yourself the next Nobel Prize winner.
On a lighter note, the previous paragraph reminded me of another video I watched on Youtube. It was a speech by Alan Greenspan. While introducing Greenspan, the presenter made a comment about wishing Economists were one-handed. If economist were one-handed then when pressed for answers on economic issues they wouldn’t be able to say, “Well, on one hand this, but on the other hand that”.
Glad she has two hands,
Your aspiring Economist
Post-script - If anyone wants to watch the Zimbabwean video:
http://www.youtube.com/watch?v=I20UNlC6qWY&feature=related
Saturday, March 20, 2010
We've only just begun to live
Yesterday, I officially finished college. It hasn’t hit me yet that as of 2:00pm Friday, March 19, 2010 I am just another number in the statistic of individuals who have their Bachelor’s Degree.
However, with my intrinsic motivation and “high standards”, as my mom constantly says I hold myself to, I lack the excitement and orgasmic jubilation that most of my counterparts seem to have or have for me about graduating from UCSB. I feel like finishing college is expected of me, just how you’re expected to learn how to share in Kindergarten. Nobody praised you because you learned how to share the “tickle me pink” crayon in your cubbyhole. Nobody took you out to Pinkberry for pomegranate fro-yo with fruity pebbles because you successfully completed your “color by numbers” assignment without absent-mindedly coloring the shape labeled 8 with purple instead of orange.
Ever since my first AP Economics class in senior year of high school, I knew I wanted to study Economics. My decision has never swayed from this desire, despite countless nights spent crying because of numerous failed attempts at finding the volume of a cylinder using differential equations, and obtaining my B.A. was just one step of the staircase.
Studying Economics in college led me to my next revelation: I wanted to be an Economist. But it’s scary to think of taking the next step. The next step is clear (get my PhD), but obtaining it is much more difficult. What if I don’t get into grad school? Then I am never given the opportunity to obtain my PhD. What happens then? The answer is simple: I don’t achieve the most important goal I’ve set for myself. The thought of failing is simply devastating and nauseating. The type of devastation you feel when you’ve had your heart broken. The gut wrenching, nauseating feeling you get before you say “I love you” for the first time to someone other than your mom or best friend.
There is something fascinating, mysterious, and captivating about Economics. It’s hard to explain, but I am simply drawn to it. People cringe when they have to explain what happens to interest rate when the Fed decides to buy bonds on the open market using the ISLM curve (it decreases it, btw) or explain what happens in the short and long run if the Fed decides on a permanent increase in money growth from 2 to 5 percent. But oddly, I find quaint relaxation in labeling my axis and clearly showing the proper curve shifts and verbally explaining what happens. I wouldn’t mind doing that for the rest of my life.
But I digress. This blog is supposed to be me sharing my fascination and passion, which i’m sure will mostly be received with impassiveness but that's beside the point. What really pushed me over the edge to actually cave into the masses and join the online blog community was due to the criticism Alan Greenspan has been receiving and how many blame him for the financial crisis because of his “loose” monetary policy.
He recently wrote a paper for the Brookings Institute defending his actions and stated it is not the Fed or his monetary policy decisions that caused the financial crisis, which I mostly agree with, but more about that in another blog.
There is so much to learn from studying Economics and so much that can easily be forgotten. When I read an article, journal, paper, or Economic textbook, there are so many different thoughts going through my head. Solving Economic problems is complicated and ultimately I want to write so I can funnel through everything going on in my head. I want to be able to look back, remember my time as a young, un-jaded, aspiring Economist, and gauge how much I’ve learned. I want the opportunity to see my mindset and fervor 10 years from now.
I want to know if I’ll be like Alan Greenspan. Will I find myself in my mid-80’s writing a 66-page paper for the Brookings Institute defending my actions as an Economist (or in his case defending his actions as former Chairman of the Federal Reserve)? Or will I be issuing a statement retracting my ideals and blame it on my naivety?
Just like Pocahontas, I feel like I'm at a fork in the river. Will the decisions I make pursuing my dream as an Economist lead me down the smoothest course or does the [Economic] dream giver still wait for me just around the river bend? I’m hoping I’ll be like Pocahontas and end up going white river rafting in a canoe. I mean, who knows, maybe I’ll meet John Smith along the way.
$$$,
Your aspiring Economist
Post-script - For those who want to read "The Crisis" by Alan Greenspan:
http://www.brookings.edu/economics/bpea.aspx
However, with my intrinsic motivation and “high standards”, as my mom constantly says I hold myself to, I lack the excitement and orgasmic jubilation that most of my counterparts seem to have or have for me about graduating from UCSB. I feel like finishing college is expected of me, just how you’re expected to learn how to share in Kindergarten. Nobody praised you because you learned how to share the “tickle me pink” crayon in your cubbyhole. Nobody took you out to Pinkberry for pomegranate fro-yo with fruity pebbles because you successfully completed your “color by numbers” assignment without absent-mindedly coloring the shape labeled 8 with purple instead of orange.
Ever since my first AP Economics class in senior year of high school, I knew I wanted to study Economics. My decision has never swayed from this desire, despite countless nights spent crying because of numerous failed attempts at finding the volume of a cylinder using differential equations, and obtaining my B.A. was just one step of the staircase.
Studying Economics in college led me to my next revelation: I wanted to be an Economist. But it’s scary to think of taking the next step. The next step is clear (get my PhD), but obtaining it is much more difficult. What if I don’t get into grad school? Then I am never given the opportunity to obtain my PhD. What happens then? The answer is simple: I don’t achieve the most important goal I’ve set for myself. The thought of failing is simply devastating and nauseating. The type of devastation you feel when you’ve had your heart broken. The gut wrenching, nauseating feeling you get before you say “I love you” for the first time to someone other than your mom or best friend.
There is something fascinating, mysterious, and captivating about Economics. It’s hard to explain, but I am simply drawn to it. People cringe when they have to explain what happens to interest rate when the Fed decides to buy bonds on the open market using the ISLM curve (it decreases it, btw) or explain what happens in the short and long run if the Fed decides on a permanent increase in money growth from 2 to 5 percent. But oddly, I find quaint relaxation in labeling my axis and clearly showing the proper curve shifts and verbally explaining what happens. I wouldn’t mind doing that for the rest of my life.
But I digress. This blog is supposed to be me sharing my fascination and passion, which i’m sure will mostly be received with impassiveness but that's beside the point. What really pushed me over the edge to actually cave into the masses and join the online blog community was due to the criticism Alan Greenspan has been receiving and how many blame him for the financial crisis because of his “loose” monetary policy.
He recently wrote a paper for the Brookings Institute defending his actions and stated it is not the Fed or his monetary policy decisions that caused the financial crisis, which I mostly agree with, but more about that in another blog.
There is so much to learn from studying Economics and so much that can easily be forgotten. When I read an article, journal, paper, or Economic textbook, there are so many different thoughts going through my head. Solving Economic problems is complicated and ultimately I want to write so I can funnel through everything going on in my head. I want to be able to look back, remember my time as a young, un-jaded, aspiring Economist, and gauge how much I’ve learned. I want the opportunity to see my mindset and fervor 10 years from now.
I want to know if I’ll be like Alan Greenspan. Will I find myself in my mid-80’s writing a 66-page paper for the Brookings Institute defending my actions as an Economist (or in his case defending his actions as former Chairman of the Federal Reserve)? Or will I be issuing a statement retracting my ideals and blame it on my naivety?
Just like Pocahontas, I feel like I'm at a fork in the river. Will the decisions I make pursuing my dream as an Economist lead me down the smoothest course or does the [Economic] dream giver still wait for me just around the river bend? I’m hoping I’ll be like Pocahontas and end up going white river rafting in a canoe. I mean, who knows, maybe I’ll meet John Smith along the way.
$$$,
Your aspiring Economist
Post-script - For those who want to read "The Crisis" by Alan Greenspan:
http://www.brookings.edu/economics/bpea.aspx
Subscribe to:
Posts (Atom)
