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How your friends impact your bank balance

How your friends impact your bank balance

Released Sunday, 4th September 2022
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How your friends impact your bank balance

How your friends impact your bank balance

How your friends impact your bank balance

How your friends impact your bank balance

Sunday, 4th September 2022
Good episode? Give it some love!
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Episode Transcript

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0:07

he welcome to the briefing to

0:09

have reached friends and i were going

0:12

to explore fascinating research from several

0:14

leading american universities that finds

0:16

that less well off children who grew up

0:18

in neighborhoods with seventy percent of their friends

0:21

were wealthy increase their

0:23

seats incomes by twenty

0:25

percent of more friends that people

0:27

have that are above median income

0:30

the higher the predicted income they're going to have when

0:32

they grow up so can friendships between

0:34

the well off and they're not so well off break

0:37

the poverty psycho and what does that tell us about

0:39

the best way to design our cities

0:41

that is are bracing topic right after today's

0:43

headlines with annika smith us it's monday

0:45

september five

0:49

five million or these will be in line to

0:51

the largest increase to their welfare

0:53

payments in more than thirty years

0:56

and that's true to rising in fly since

0:59

the age pension will rise by almost thirty

1:01

nine dollars a fortnight and

1:03

job seekers a single so go up by twenty

1:05

six so

1:06

the fortnight surveys allowances have increased

1:08

by four percent which was the inflation

1:10

rate for the six months to june twenty twenty

1:13

two and speaking of rising costs

1:15

tomorrow the castrate is expected to go

1:17

up another zero point five percent

1:19

to two point three five percent

1:21

and at twenty two cents a liter fuel

1:23

excise relief will finish at the end of

1:25

september so your fuel bill will be going

1:27

up as well the value of your house

1:30

is probably going down so pretty

1:32

tough economic times on annika

1:34

yeah i guess this is why the tension right

1:36

is linked to things that concise and because

1:39

it might seem good the payments are going

1:41

up that given the gonna be paying most petrol

1:43

and more for groceries it's probably

1:46

sadly gonna be absorbed by that

1:48

and debate begins in the

1:50

senate to die on the government's climate

1:52

change bill is it's possible enshrine

1:54

into law a forty three percent emissions

1:57

reduction target five twenty thirty

1:59

now the grain the backing it but

2:01

i'll also table separate legislation that we

2:03

introduce a climate trigger into the mining

2:05

approval process any project

2:07

should have an assessment

2:09

to whether it's good for

2:11

the

2:11

or bad for the climate before

2:14

it's given any tossing star mental

2:16

approval under that proposed by the grains

2:18

new minds and says elements that emit

2:20

more than one hundred thousand suns

2:22

of carbon would be banned meanwhile

2:25

off the back of the job some at last week's the

2:27

government hugs to introduce new industrial

2:30

relations legislation by the end of the

2:32

her labour wants to broaden access

2:34

to multi employer bargaining agreements

2:36

this is one of the big stories to come out of the job

2:38

cements basically will allow workers

2:41

across different companies in the same

2:43

industry to share the same wages

2:45

and conditions but annika this seems

2:47

to be i'm a move by labour

2:49

that's gonna get a bit of fought from the opposition

2:51

look and they need semi to fight back

2:53

said the popularity of the government's

2:56

quite high at the moment that often after

2:58

elections for the opposition is

3:00

looking for a size and city moink

3:02

the things that one the stand up for

3:04

small business connections to small

3:07

business fights this is unions let

3:09

this one could actually be one that

3:11

works ness there has been

3:13

some support from the council small

3:16

businesses saying actually okay with this

3:18

to a certain extent the going in with an open mind

3:21

and negotiations that doesn't mean there might

3:23

be some small business owners out there that aren't

3:25

happy and will be looking for them on stand

3:27

up for them in this fight sites yet look out

3:29

given the opposition's terrible position

3:31

at the moment i think cel sort of be happy

3:34

to take this one on and

3:36

, trump has held his first rally

3:38

since the ride on his estate emeril lagasse

3:40

saying this about joe biden said

3:44

he went on to tell his supporters in pennsylvania

3:47

that the search on his home was his home

3:49

of justice accusing bad enough

3:51

an abuse of power even though the justice

3:53

department and the as the ice act

3:56

independently as the white house here

3:58

it's to not confirm whether trump will be run

3:59

in twenty twenty four but

4:02

if he is he's ambitions could be

4:04

derailed after this ride

4:06

death the i the cupboard more than eleven

4:08

thousand government documents from

4:10

his house including forty eight

4:12

empty folders labeled as classified

4:15

last a fun slammed trump and his

4:17

supporters

4:18

lying mega forces a determined

4:21

to take the

4:22

three backwards do think is

4:24

going to run against

4:25

it does seem that way i'm be there

4:27

torn on this some as somebody that had this

4:29

was surprised it's looking the government

4:31

documents some i know it's not a lot of fun

4:33

but he sees broken the law and as

4:36

such issues he us it

4:38

i eat it really will like is suddenly

4:40

day rails his attempt to get back eat

4:42

it could actually legally prevents

4:44

him but i think what's that to be able to support him

4:46

is actually embolden them tommy know they it

4:49

just fades into that idea that people

4:51

are out to get him

4:52

and if any think it'll actually making more popular

4:55

amongst republicans perhaps well i think

4:57

it's inevitable that is gonna run while so to

4:59

be holding always rallies or thing

5:01

that's gonna happen what will be interesting is how

5:03

the republican party responded

5:06

i just with him again

5:08

or dinner i guess

5:10

growing list of issues around

5:12

trump and split the support within

5:14

the republican party

5:16

a big match in the us open

5:18

sky nick curiosity icon

5:20

world number two danny medvedev if

5:23

he wins he'll be through to the quarter finals

5:25

now that zalmay

5:26

three his third round match in straight

5:29

sit there while over the weekend the

5:31

big match serene williams clyde

5:34

it looks like her last ever match

5:36

and she lost in the third round to and

5:38

australian yeah

5:49

a big win for alla tom janowicz

5:51

amps is ranked forty six in the world

5:53

so to take on serrana so

5:56

much pressure on a guy i mean she had to stand out

5:58

there much always fanfare cause

6:00

urena and then she lost the second

6:02

said came back in the third so to me

6:05

that's an amazing result

6:07

for her showing extreme mental toughness

6:09

to be out of winning those circumstances absolutely

6:12

the crowd was not i'm has side there

6:14

isn't searing salts that

6:16

she didn't seem to mind see adds up there

6:18

in investing credible to the all these

6:20

meanwhile former world number one

6:22

korea as a rank has called on the women's

6:24

tour to do more to protect

6:27

young and vulnerable players from

6:29

of use the very sensitive subject

6:31

because in

6:32

you won't hear those stories unless players

6:34

come out and tell those stories

6:37

happens right and left

6:38

on a tour which , unfortunate

6:40

and our job you know is is

6:42

to be a bit better as safeguarding

6:45

this comes after a sixty year old friends coach

6:48

was charged with raping and assaulting one

6:50

of his eyes claims he denies

6:53

and one of the biggest fan since history

6:56

and ivana is one of those those as

6:58

the i twenty four size as an size

7:00

had four month old baby on the cover

7:02

of it's ninety ninety one album

7:04

nevermind suspend salesman who

7:06

was the baby in the image climb the photo was

7:08

sexual exploitation and cause

7:10

him and loss of enjoyment loss life during

7:13

the two hundred and twenty thousand astray and

7:15

dollars but a us judge jar

7:18

didn't say that way said out and had waited

7:20

too long to make the claim that

7:22

the statue of limitations of ten years

7:24

and out and is thirty one his

7:26

old and his decision prevent him from filing

7:29

a fourth complaint against nirvana

7:32

side

7:33

i mean

7:34

that's a mighty scarlet the too long but

7:36

he only got two hundred us dollars for that photo

7:39

back of the time so be nice if they could share some

7:41

of the cash with him that you think think

7:43

it's his parents the my money to town for

7:45

ethical catch you again tomorrow katrina blouses

7:48

about to join me to look at this fascinating research

7:50

about average research friend's house

8:01

right now to research that shows how

8:03

rich you friends are fix

8:05

your future bank balance katrina

8:07

it makes me when a definitely go

8:09

and get some oil rich friends

8:12

i'm spurs it's is from some

8:14

procedures the universities in the us

8:16

including stance in harvard has

8:18

analyzed feel eons of social

8:20

media connections on facebook and

8:23

death found when poor children

8:25

live in an area with area with three read

8:27

more affluent kids neither

8:30

can lead increases how much now and

8:32

when they become adults

8:33

yeah this study concludes the friendship

8:35

between rich and poor more

8:38

than any other factor explain my children

8:40

in some neighborhoods do better later in life than

8:42

others so it's really interesting and to tell

8:45

us how these dynamics work and

8:47

how we can use this information to lift more

8:49

people are we're joined by one of the study's

8:51

authors matthew oh jackson who's

8:53

a professor of economics at stanford

8:55

university many thank you for joining

8:58

how did this research work well

9:00

we're interested in understanding

9:03

your what it is about people's social environments

9:05

that helps them get ahead and so

9:08

we were able to take advantage of on

9:10

facebook data which has a lot

9:12

of information about people's friendships

9:14

their friendship patterns where they make friends

9:17

and a whole host of other things

9:19

and so were you able to use that to try

9:21

and understand in a what helps

9:24

people get ahead in life and terms of know

9:26

if you're born into a poor family how

9:28

to manage to to rise out of poverty

9:31

what were their metric say he used

9:33

to figure out whether someone we'll

9:36

see your had will see friend

9:38

so you know there's a

9:40

lot that you can see about

9:42

people from their facebook profile

9:45

so we can tell we're some and lives

9:48

whether they went to college what kind of phone

9:51

they have whether they donate things

9:53

ounces donate whole series of behaviors that we can take

9:55

advantage of and then using

9:58

information from the census data

9:59

we were able to pinpoint in

10:02

a what the income and a very specific areas

10:04

and so then we used as a series of models

10:07

computer models to estimate people's

10:09

incomes and it you know

10:11

then we could match it up with information we knew

10:13

and were able to do a pretty good job

10:15

of seeing what some buddies incomes going to be

10:18

okay so the study found that poor children

10:21

who grew up in neighborhoods where seventy percent

10:23

of their friends were wealthy would increase their

10:25

future income twenty percent

10:28

on average now i was wondering doesn't

10:31

happen because by virtue

10:33

of living amongst people like that you

10:35

have access to the

10:38

facilities potentially opportunities

10:41

even part of a a wider culture

10:43

with a kind of habits and again a lanzhou

10:46

with a wealthier live or is

10:48

it about the individual personal

10:50

connections between someone who is

10:53

poor and someone who is rates are in the

10:55

way that individual relationship changes

10:57

your loss yeah so the studies offer

10:59

as a bunch of clues as to how this works

11:01

and and you know what one

11:04

thing that surprised us was you

11:06

know we looked at a lot of different measures of

11:08

your social environment and the ones

11:10

you mentioned what we call economic connectedness

11:12

in a whether poor people have a lot

11:14

of friends that are ya above

11:17

median income so if they have wealthier friends

11:19

what's the chance that they get ahead

11:21

and that seem to be the ultimate predictor

11:24

the a why exactly that's working is

11:26

something we can't see directly in our

11:28

data but there's a lot of reasons

11:31

from the broader research

11:33

on this been done on this question that we have

11:36

reasons to believe that you know exposure

11:38

to other people makes a big difference in some

11:40

buddies outcomes and ,

11:43

to name a few things that are likely

11:45

candidates when you think about you

11:47

think growing up what of their friends

11:49

provide for them well you tend to act

11:52

like your friend so if they're doing homework every night

11:54

and studying for exams and thinking about going to

11:56

college he tended to the same thing if

11:58

they're not doing any those thing than and

12:00

doing something else you tend to do whatever

12:02

else they're doing and that makes a difference

12:05

once you get out of of school most

12:07

people find jobs through friends so it's

12:10

it's very rare for people just as land a

12:12

job without having some connection to

12:14

the place at the end up working and

12:16

so you know if you have people are a friends that are

12:18

well employed if you work in finance

12:20

or you want to work in high tech you don't

12:22

have friends there can be a lot harder to get

12:24

in the door and so you know you put

12:26

all these things together and it's not surprising

12:29

that people that have no more diverse

12:31

friendship patterns and and more connections

12:33

to people that are well off are going to have a much

12:35

higher chance of advancing than others but

12:38

how close does the connection need

12:40

to be do you just need to be you know

12:42

surrounded by those people living in the same

12:44

community maybe even sharing a classroom

12:47

or do you have to know that bit more

12:49

closely for that having

12:51

a an effect on you

12:53

interestingly both things matter so

12:55

we're we're able to measure both

12:58

we can look a say in a high school and

13:00

see whether or not somebody is exposed

13:02

to lot of a wealthier people but

13:04

then we can also see whether they actually make friendships

13:06

with those they're more more

13:08

equally predictive so first of all

13:10

you need to be around people like that and that helps

13:13

but you also get of you know an extra

13:15

big push from from having the friendships

13:18

so both of those are predictive of the eventual

13:20

outcomes and more or less equally

13:22

eat you know you having people around

13:24

makes a difference but also having those friendships

13:26

makes a big difference as well

13:28

the mention that statistic as

13:30

seventy percent she made to have seventy

13:32

the sense of your friends who are will

13:35

see as in you are

13:36

why that number

13:37

seventy percent would be what a typical wealthy

13:40

person does so it's all just one of the numbers

13:42

we given the papers say you know if

13:44

you take it a typical poor person

13:47

else about thirty eight percent of their friends

13:49

that are wealthy a typical rich person

13:51

has about seventy percent of their friends that

13:53

are wealthy to be taken a typical poor

13:55

person the ones that live in

13:57

areas where they have friendship patterns

13:59

that look like typical british person end

14:01

up having twenty per cent higher income so

14:04

that's sort of were that number comes from but

14:06

more or less it's it's a pretty linear relationship

14:08

so the more friends that people

14:11

have that are above the median income

14:13

the higher the predicted income they're going to have a

14:15

when they grow up

14:16

then you don't ride across america so what

14:19

did you learn about different communities

14:21

and and the way they set off

14:23

and and i guess how ghettoize i are into

14:25

different socio economic groups yeah

14:28

so you don't think there's there's a bunch

14:30

of things that pop out when you look at the

14:32

data them geographically in

14:34

a one is dead there's a huge

14:36

variety of area

14:38

is if you look within an area you

14:40

can look within a particular city and

14:43

i'll take chicago area or in

14:45

new york area los angeles area and

14:47

they'll be neighborhoods that have very strong economic

14:50

connectedness and other areas that don't

14:52

they might be right next to each other so

14:55

you know that there's something about local

14:57

structures and so forth that matter and

15:00

then we can drill in so the there's

15:02

a lot of writing of writing variety around the

15:04

country but you also see that you know

15:07

areas in the south have worse connectedness

15:09

than areas and say the upper

15:11

middle west so there's other in a geographic

15:13

patterns you also see things

15:15

like where people make most of their

15:17

friends so poor people tend

15:19

to make most of their friends in their own neighborhood

15:22

or in their high schools when you look

15:24

at people who are are wealthier

15:27

a lot of their friendships and a be made in college

15:29

and and to be made in a workplace and i'm

15:32

so there's different patterns and where people are making

15:34

friends and those you

15:36

know how cohesive and how

15:38

well connected those are depend

15:41

on the area itself

15:42

the would have these findings tell us then

15:45

about good policies the listing

15:47

people are

15:48

he also one thing that is

15:50

pretty effing strong in the data

15:53

is that when you look at institutions say

15:55

look at a school or university

15:58

the size of it actually is fairly predictive

16:00

in the same thing as of who have an employer if

16:03

it's a fairly small institution there's

16:05

going to tend to be many more cross class

16:07

friendships than if it's a huge place

16:09

and that makes a lot of sense you know when you think about

16:11

a school if the school has thousands

16:14

of kids in it and some

16:16

of them are taking advanced classes and others are

16:18

taking a remedial classes that's

16:20

likely going to be segregated by incoming class

16:23

and so those friendships are unlikely to form if

16:26

you put people in the same classroom and they're they're

16:28

spending time day after day after day they'll

16:30

get to know each other they'll know more about each other's

16:32

or norms will be more similar though

16:34

interact a lot more one thing is

16:36

that you need to have people next to each other

16:39

said across classes and then you also

16:41

need to foster those friendships are just putting him

16:43

in a giant institution together isn't

16:45

gonna get people to to have cross

16:48

class friendship to actually have to put them in your

16:50

smaller units where they're actually

16:52

interacting on a regular basis and

16:55

in that seems to be pretty strong in the data

16:57

the do you think america is changing in a way

17:00

that is encouraging more cross

17:02

class friendships or less

17:04

we have sort of a snapshot in a we were

17:07

looking at at one piece of time and if

17:09

we can see people's friendships back in time

17:11

is it worth your from just looking at a

17:13

given high school across cohorts with

17:15

which we can see in the in the data things

17:18

look pretty steady though we don't see a

17:20

big change over short periods of time

17:22

but they're certainly big changes in our lives

17:25

we think about what social media doing to our lives

17:27

in the our ability to connect to other

17:30

individuals over long distances and so

17:32

forth is much greater

17:34

the same time you know those platforms

17:36

and so forth might be tending to push

17:38

us towards people who are more similar is easier to

17:40

find somebody who has exactly the same interests

17:43

and near your same background so

17:45

i think you know when you look at the forces there's forces

17:47

pushing forces pushing directions there's forces that

17:49

allow us to be connected a more individuals than

17:52

ever before a greater distances

17:54

but they're also allowing us to connectors

17:56

some more similar people who think the same

17:58

way and have the same background said

17:59

the

18:00

there's some on hearing about this research

18:02

may be listening to a right now here on the bracing

18:05

should they tank this information say

18:07

well i need to make more rich friends

18:10

when i usually take away from the sorts of things is

18:12

that our networks yard our personal

18:14

networks are more insulated

18:16

and they look more like

18:19

us than we really we tend to realize and

18:21

that's true of everybody your understanding

18:23

that and understanding some the consequences is

18:26

important and you know what that

18:28

can mean is that it's good for us to

18:30

venture out a little further than we would normally

18:32

have personally i you know as a as

18:34

a person that economists i may tend to go to

18:37

conferences and other areas like sociology

18:39

conferences or other kinds of things to meet people

18:42

i normally wouldn't meet and to understand how

18:44

they think and what they do and

18:46

so the more we realize how

18:48

know idiosyncratic our own structures are

18:51

the more we can censor

18:53

to join overcome that is humans

18:55

retentive to really feel comfortable

18:57

around people that we really understand well

18:59

understand think dislike us and have the same

19:01

preferences and so forth so it's tough

19:03

it's tough do that

19:05

yeah i mean we're being told me this on an individual level but

19:07

on a societal level better

19:10

for society overall to have these

19:12

cross class relationships and

19:15

that kind of economic mobility that

19:17

can come from that

19:18

i think you know there's other research that

19:20

tends to show that places that have

19:23

less inequality and more mobility

19:26

tend to have higher productivity

19:28

better welfare overall this

19:30

not cause of research but it is you know there's tends

19:33

to be correlations to say the if you're in a society

19:35

that's where things are more equal and

19:37

people have those opportunities that

19:40

the society tends to function better

19:43

you , having highly segregated in

19:45

networks is a recipe for

19:48

ios having more problems in terms

19:50

of polarization and and just

19:53

difficulties in general say i

19:55

think it's it's part of of much broader picture

19:58

that we know something about and this

20:00

isn't give us the secret recipe for how

20:02

does how to get out of it but it does show

20:04

us that these individual connection

20:07

sign up a personal level across

20:09

classes make a big difference in

20:11

people's lives

20:12

that was matthew oh jackson a professor

20:14

of economics at stanford university with that

20:16

awesome research i mean to sound like subscribe

20:19

daughter that's i saw dot of they're able to cut

20:21

up for this research it also just makes

20:23

me think about school system here in

20:25

australia to trainer and it worries

20:27

me that

20:28

more of just the wealthy kids

20:30

got a private schools are not part of our public

20:32

yeah system and therefore we don't get

20:34

that cross class crossover ny

20:37

and it's impossible to do die

20:39

unless he has to mean a d

20:41

network source you use

20:43

eg lent his parents he intends

20:46

is in i getting a tease out

20:48

into the community and mixing these

20:50

kids from all different backgrounds

20:52

ah it's almost impossible to do

20:54

that he is he keeps the ring sanctified

20:58

bubble the have a private school system

21:00

in a brings to mind see you

21:02

know express in a rising tide

21:04

lifts all boats and i think that that's

21:06

definitely relevance yeah it's

21:09

beautiful research it it's hot and

21:11

down

21:11

yea it's that is so

21:13

cases that the very best seen him

21:15

and night so ultimately it and what

21:17

that can do three friendship yeah

21:20

i think through those times out there for the why we plan

21:22

our cities as well about the

21:24

kinds of housing we make and

21:26

how affordable it is and what the mixes

21:28

in certain suburbs and you know if

21:30

we just have reached suburbs and poor

21:33

suburbs and this separate

21:35

than we're also going to miss out on the benefits

21:37

of that cross class crossover

21:43

right tomorrow in the briefing we're going to find

21:45

out why japan is looking

21:47

at restarting it's

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