If interest rates rise, what will typically happen to bond prices?
Is this basic financial literacy? Who deals with this on a daily basis?
As for the other questions (inflation, interest), any average person knows this. What kind of people did they ask?
any average person knows this
I would venture to suggest that perhaps Eurobarometer polls might be more-representative of the population than your circle of friends and family.
I remember the first time I saw a poll as to the percentage of people here in the US that believed in ghosts and was very surprised. If you’d asked me prior to seeing poll data, I’d have guessed that the number would be below 1%.
This year’s results showed a slight drop in Americans who say ghosts are real. In 2019, 4 in 10 Americans believed in ghosts, and more than 46% agreed that supernatural beings exist. In this year’s survey, about 41% of adults said they believe in ghosts.
Slate Star Codex had an article a while back about the remarkable impact of social bubbles. It was really talking about how people isolate themselves into “political bubbles” of Democrats and Republicans, and how people in each camp should be more tolerant of each other. But I think that one can generalize the mathematical side of what the article was talking about, that one can have a social circle that is statistically insanely not-representative of the population as a whole, because of tendency of people with similar viewpoints to cluster.
A quote from the article:
There are certain theories of dark matter where it barely interacts with the regular world at all, such that we could have a dark matter planet exactly co-incident with Earth and never know. Maybe dark matter people are walking all around us and through us, maybe my house is in the Times Square of a great dark matter city, maybe a few meters away from me a dark matter blogger is writing on his dark matter computer about how weird it would be if there was a light matter person he couldn’t see right next to him.
This is sort of how I feel about conservatives.
I don’t mean the sort of light-matter conservatives who go around complaining about Big Government and occasionally voting for Romney. I see those guys all the time. What I mean is – well, take creationists. According to Gallup polls, about 46% of Americans are creationists. Not just in the sense of believing God helped guide evolution. I mean they think evolution is a vile atheist lie and God created humans exactly as they exist right now. That’s half the country.
And I don’t have a single one of those people in my social circle. It’s not because I’m deliberately avoiding them; I’m pretty live-and-let-live politically, I wouldn’t ostracize someone just for some weird beliefs. And yet, even though I probably know about a hundred fifty people, I am pretty confident that not one of them is creationist. Odds of this happening by chance? 1⁄2^150 = 1⁄10^45 = approximately the chance of picking a particular atom if you are randomly selecting among all the atoms on Earth.
About forty percent of Americans want to ban gay marriage. I think if I really stretch it, maybe ten of my top hundred fifty friends might fall into this group. This is less astronomically unlikely; the odds are a mere one to one hundred quintillion against.
People like to talk about social bubbles, but that doesn’t even begin to cover one hundred quintillion. The only metaphor that seems really appropriate is the bizarre dark matter world.
Apparently nearly 70% of US is religious, so I don’t know why you’d be surprised about people believing in ghosts. I would even say you need a deeper understanding of the world to understand why ghosts can’t exist.
Do spirits of souls stay as ghost according to us christians? I thought one of the core tenets are that souls get judged and then accepted to heaven or thrown into the trash heap or hell depending on reading
EU citizens are not doing well when it comes to financial literacy. Nearly half lack an understanding of basic financial concepts, including inflation.
I can believe that.
On the other hand, I kind of suspect that one might see similar results here in the US, not to mention in other places.
Even elected officials lack the basic understanding of inflation. Many think a declining inflation rate results in prices also declining and push policy according to that.
As a Dutch person, let me just say:
Suck it, Finland!
This is the best summary I could come up with:
The best performers were the Netherlands (43%), Denmark (40%), Finland (40%) and Estonia (39%) where about four in 10 respondents display a high level of financial knowledge.
While the scores of France and Italy were slightly below the EU average, this figure was noticeably low in Spain at 19%.
Proportion answering this question correctly (“Less than you could buy today”) was below 60% in Cyprus, Portugal, Greece, Romania, and Italy whereas Finland and Estonia had the highest share at 84%.
The proportion with a high score varied between from 11% in Portugal and Latvia to 27% in Denmark, Slovenia and Sweden, and 28% in the Netherlands.
To illustrate, when participants were asked whether they keep track and monitor their expenses, only 16% in Finland replied, “completely agree”.
The EU is working to ensure that its citizens have the knowledge and skills they need to make good financial decisions.
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