The Salt Lake Tribune had some good and bad news for Utahns on Wednesday; the Mortgage Bankers Association reported that Utah's foreclosure rate for April-June was 1.56 percent, which is down from 2.03 percent in 2003's second quarter. Our delinquency and bankruptcy rates are down as well. That's the good news. The bad part about the report is that the rate at which families in Utah are losing their houses to foreclosure, ranks as the 10th highest in the United States.
Jeff Thredgold, an economist from Salt Lake City, claims that "Utah's ranking in terms of delinquencies and foreclosures compared with other states probably always will remain high." He says, "We have 50 percent more kids than the average American, which puts added financial stresses on families, combined with the fact that people in Utah get married younger and there's a tendency for them to try to keep up with friends and neighbors by buying a house."
In relating this to Managerial Economics, there are many different approaches one could take. Since we have been talking about incentives, and the theory that people behave rationally, Thredgold's comment about people getting married younger provoked questions in mind about what kind of incentives young people in our culture recieve in getting hitched at a young age? Don't they know they are going to be poor? It seems that the threat of bankruptcy, forclosures, and other such matters are things they might as well register for, along with other things they desire at Target or Pier 1!
So what are the incentives? Most people say sex at first. Could it really be? I don't have the answers, I'm not married. I know that many students here at SUU, and even in our small class, may have gotten married at a young age, and maybe they could help solve this mini-mystery. Is It government assistence with school? Is it truly undying love? I'm sure it depends on each specific couple, but I know Landsburg could come up with some interesting ideas.