This story has been going around the internet lately. For those who like me are probably too lazy to click the link and read through it, it shows a Craigslist posting by a woman who is living in New York and seeking a man for ‘marriage only’ who is making $500K+ a year and describes herself as a “stunningly beautiful” 25 year old. In an amusing response, a man replies that what she is suggesting is “plain and simple a crappy business deal”. His argument being that his wealth will likely appreciate in value whereas her beauty will surely depreciate. Therefore, he would only consider a leasing arrangement with her, but not marriage.
It’s a pretty funny read all by itself and stands on its own, but for the sake of discussion and because I’m bored let’s assume that both the man and the woman are entirely serious and that this is really how they see the world rather than either one of them just trying to be funny or not expressing themselves clearly. In that case, we can clearly see that both are very shallow individuals. They are speaking about human beings as if wealth and beauty are pretty much the only relevant features worth bringing to the table in a relationship, and they don’t care about love or feelings or companionship or any of that “B.S.”.
Now obviously what the guy is saying in his response doesn’t make any sense if you take on a less shallow perspective on humanity. But what interests me more is the fact that the more I think about it, even if I force myself to think in a totally callous completely selfish fashion like he is, I still think what he is saying doesn’t really make any economic sense to me. So my problem with what he is saying goes deeper than the fact that it is a shallow analysis. My problem is, I find, that I just think he is just plain wrong. His reasoning is inherently flawed. I’m not sure how he made it to $500K+ a year with such faulty economic reasoning. Let me explain.
He argues:
“ But here’s the rub, your looks will fade and my
money will likely continue into perpetuity…in fact, it is very likely
that my income increases but it is an absolute certainty that you won’t
be getting any more beautiful!
“
But that’s just wrong. Money does not “continue into perpetuity”. Everybody knows cash depreciates in value naturally. That’s why we have to struggle so hard to find good investments for it. Over time, thanks to inflation, your money just becomes less and less valuable. The very worst thing you can do with your cash is stick it under your bed. Many, many assets you can buy, even though they depreciate are better business propositions than that, since you get an inherent use out of them, whereas money sitting under your bed just loses value while you get nothing out of it.
He is really talking about his salary, but salary is not an asset really. That’s the return. The asset is “Him”. Namely whatever skills or knowledge he is bringing to the table that allows him to make that much money in his career. But there’s certainly no guarantee whatsoever that those assets will continue on into perpetuity. Even excluding the possibility of a freak accident causing brian damage or the likelihood that times might change and his skill set many suddenly become obsolete, there’s the simple fact that he will eventually get old and at some point he just won’t have enough to bring to the table in order for him to continue on in whatever career he has. Eventually he’ll be forced into retirement and most likely end up making considerably less than he made while working full time.
So he is overestimating the value of what he is bringing to the table. What’s more, hes also vastly underestimating the value of what she is bringing to the table. As she describes herself as bringing “looks, culture, sophistication, and keeping a nice home and hearth” whereas he only considers the “looks” part. Minimally the “keeping a nice home and hearth” part adds minimally the value that would cost to pay for a housekeeper, and should they have or adopt children, she adds the cost of childcare as well. That’s not huge, but it is certainly not an insignificant part of the equation. He is wrong to ignore that part of her proposition so thoroughly.
Furthermore, he seems to have a very bad understanding of the economic value of “beauty”. While it’s more or less true that “beauty” fades, that hardly means it is without value. Having a beautiful wife can be, if leveraged properly, a significant asset. It can open doors to opportunities for investment and power that do not exist for the less than aesthetically appealing amongst us. It can get you ensconced into social networks that are closed to those without the looks (see the episode of Family Guy where Peter is invited into the Beautiful People’s club as an example of this) and it can provide opportunities to manipulate and control those who are vulnerable to the wiles of a pretty face. The resulting wealth and influence could well lead to obtaining assets that not only don’t depreciate in value but appreciate much faster than the beauty depreciates.
Presumably “culture and sophistication” speaks in part to her ability to interact with social networks and be an asset for him in this regard. If she doesn’t already have a social network of connections she is bringing to the table, she is at least saying that she considers herself very capable of making the necessary connections that could help add value to their family unit. Yet he totally misses this point.
And you really can’t leverage that beauty as effecively or safely if you are simply dating the person rather than having married them. The ‘married’ status offers certain social benefits and gives you a kind of blanket approval status by society. And the risk of not being ‘married’ is considerable. Since she could easily leave him and go off with one of the many business liaisons he would have her interact with as part of leveraging her beauty. Marriage, especially with a good prenup provides some insurance against such a possibility.
If the two choose to have children, her beauty could prove to be an even more substantive asset. Since presumably some of her looks would pass on to their children, that would provide them with a powerful advantage during their early lives in their own pursuit of wealth and power. Assuming some minimal degree of loyalty, their success in the world will be only advantage to him or the ‘family unit’ as far as economic business propositions go. Of course, if she doesn’t bring anything else particularly helpful genetically to the table it may not be a good idea, but that’s just it really. He isn’t even looking into this potential investment enough to determine whether or not that could be advantageous to him.
I also don’t get the ‘buy’ versus ‘lease’ argument, not really. Even putting aside the fact that marriage and buying are very different and so are leasing versus dating, it doesn’t necessarily make more sense to lease than to buy in a situation like this. Assuming that leasing costs about the same as buying, that is he will be giving up the same percentage of his disposable income to her to use, leasing seems like just a bad deal to me. He is effectively just throwing the money away and not getting anything lasting in return. Much like when you lease a car, you never really ‘own’ it, but it still loses value all the same and you have almost exactly the same responsibilities toward that vehicle as you would if you owned it outright. It just isn’t ever really yours.
Leasing only allows you to live above your means and get a car that is more valuable than you could otherwise afford. Buying is more effective economic strategy unless you are a person who has to always be driving the latest and greatest vehicle out there. When you buy, you can drive the vehicle into the ground and make maximal use out of it. What’s more nobody can outright take it away from you on a whim or demand that you follow any restrictions such as mileage limits or whatever. Lastly, when you buy if you wreck the car you don’t have to pay for it, you just have to find yourself a new vehicle. When you lease you have to pay back the old and get a new one.
What does all that mean for relationships? Ur, well, I’m not sure I’m really prepared to go there. Let’s just say I’m not in any way convinced leasing/dating is the more effective use of your money.
Ok, lastly, I think the respondent is even wrong when he talks about efficient markets and his surprise that she hasn’t found someone making $500K already. First anyone who seriously looks at the relationship market would find themselves hard pressed to show that it acts as an efficient market at all. It is very inefficient from my observations and I’m sure most would agree. Secondly, even if it were an efficient market, that does not guarantee an efficient match between buyers and sellers of goods, rather it only speaks to the likelihood and the eventuality of it. It’s entirely possible that at any given point in time a particular seller may not have been able to find a buyer for her goods. That doesn’t make the market inefficient.
O.K., now don’t get me wrong. I’m not saying that he should totally take her offer or that it is a good business deal in any way shape or form. What I am saying is that the responder is way to quick to dismiss the proposition altogether without further analysis. A businessman who is that quick to dismiss a possible proposition and on such spurious grounds is not a very good businessman in my opinion. Rather he should rather carefully compare what she is proposing to other similar deals on the table and do much more research into each before picking the best one available. And he might as well spend his money on something or someone since it is just losing value otherwise. He could invest it in the stock market, a business, or he could invest it in a leasing arrangement with a woman or a marriage relationship with a woman, or whatever. He’s just got to decide what the greatest ROI will really be and then make the best choice possible. I don’t think he’s doing that.
Ugh. I feel really dirty now after having made myself think like that. But there you have it.