Get a Job. Any Job.
[Guest post by DRJ]
Ben Bernanke is Chairman of the Federal Reserve System, the central bank of the United States. One of the duties of the Federal Reserve is to conduct monetary policy “in pursuit of maximum employment.” Thus, Chairman Bernanke wants to see Americans employed, but that’s not easy given the current job situation. This is especially true for young people ages 18-24, for whom college enrollment rates are at record highs and unemployment is alarmingly high.
Chairman Bernanke is scheduled to speak today to graduates at the University of South Carolina. Not surprisingly, his prepared remarks include advice about money and jobs:
“We all know that getting a better-paying job is one of the main reasons to go to college. … But if you are ever tempted to go into a field or take a job only because the pay is high and for no other reason, be careful!” Ben Bernanke said in his commencement address.
“Having a larger income is exciting at first, but as you get used to your new standard of living and as you associate with other people in your new income bracket, the thrill quickly wears off,” he said.”
Before becoming Fed Chairman in 2006, Bernanke was an economist and author in academia who taught at Princeton. He owns total assets valued at $1.12 million-$2.41 million, with income from his investments of $136,500-$318,000. In addition, his salary as Fed Chairman is $186,600 a year, and his wife receives salaries from the two Washington, D.C., schools. Perhaps he has sacrificed to take a government job but, if so, it’s not by much.
Bernanke’s remarks suggest his message to students is: Don’t worry about money. Be satisfied with any honest work. That isn’t a bad message, nor is it a surprising message given the challenging jobs outlook. However, while I agree with living frugally and within one’s means, I also believe each American generation should strive to surpass the last in technology, living standards, and earnings. The outlook for that is bleak now and Bernanke’s words imply he sees that, too.
Not everyone can have Bernanke’s life but how many of today’s graduates will come close?
— DRJ
Less than 1%, same as in the past. The numbers in this piece show a Bernanke annual income above $400K/yr.
Most of us fall well into that 99.x%, and I vividly recall the 10.8% unemployment of 1982 and the flat career trajectory implied for those of us graduating college at that time. Unrealistic expectations are what has driven U.S. culture to expect to buy a $500K house on $50K income, big-screen TVs and Hummers, and home and stock prices that only go up. Things have not changed, only become clear. There is a well-known study of parapalegic accident victims, and lottery winners; one year after the event, their happiness levels were similar.
Bernanke is delivering a mature message, not discouraging graduates not to strive.
TimesDisliker (eaeab5) — 5/8/2010 @ 3:38 pmTogether with multi-millionaire Barack Obama saying that people might be earning more than they deserve, it seems that the Obama administration ( yes, I know who appointed Bernanke ) is full of people who seem more interested in pulling up the ladder behind them.
SPQR (26be8b) — 5/8/2010 @ 6:21 pmMr Bernanke wrote:
The thrill of poverty, on the other hand, just never seems to wear off.
The disgusted Dana (474dfc) — 5/8/2010 @ 6:54 pmCollege graduations are when we typically tell young Americans to pursue their dreams and reach for the sky. To me, this excerpt from Bernanke’s speech tells them to be satisfied with their lot in life. Finding a way to be happy with your life is good advice **, but settling for whatever you can get isn’t the American way. I hope Bernanke’s speech, as delivered, focused more on the former than the latter.
** For example, here’s another admirable excerpt: “It is possible that doing the ethical thing will make you feel, well, unhappy,” Bernanke told the graduates. “In the long run, though, it is essential for a well-balanced and satisfying life.”
DRJ (d43dcd) — 5/8/2010 @ 7:28 pmThere is a movie from 1980, called “Middle Age Crazy” with Bruce Dern. In it, he watches his son graduate high school and imagines himself giving advice to the graduating class and delivering a line like this: “Look. Half of you will be lucky to catch on with the phone company.”
75% of the kids sitting in gowns will be stoned, and the rest will be itchy and bored. Maybe Casey Kasem would be a better choice, “Reach for the stars and keep your feet on the ground!”;-)
TimesDisliker (eaeab5) — 5/8/2010 @ 7:42 pmHaving a larger income is exciting at first, but as you get used to your new standard of living and as you associate with other people in your new income bracket, the thrill quickly wears off.
Perhaps it did for Mr. Bernake, but how does he know this about other wealthy people? I note he uses the illustration of people who win the lottery but aren’t necessarily any happier than they were before they won. But that doesn’t seem analogous to the person who has worked hard and sacrificed to earn their wealth. The people that I know who built their businesses from scratch, and through hard work, commitment and sacrifice, reached their goals seem rather happy with the rewards they’ve reaped. They are not cavalier nor take it for granted because it was their own blood, sweat and tears that made it possible.
Dana (1e5ad4) — 5/8/2010 @ 7:54 pm