Prepare for the fiscal cliff by 'cleaning house' on Facebook

You may have a huge roster of Facebook friends, but that’s not going to help you if the fiscal cliff plunges the United States back into recession next year.

If your social network is made up of hundreds of people you haven’t had a real-life conversation with in years, you’re worse off if the economy tanks than people with just a handful of close friends.

Emoticon-based friendships aren’t strong enough to act as a safety net in an unstable economy, University of Virginia psychology professor Shigehiro Oishi wrote in “Optimal Social-Networking Strategy Is a Function of Socioeconomic Conditions,” a study published last month in the journal Psychological Science.  

“In unfavorable economic conditions, under which individuals often need serious practical and material help from others, having a large number of friends might drain all of your time and resources,” he wrote. In other words, you’re not going to lend money to or offer to babysit for someone whose interaction with you largely consists of “Like" this post, and they wouldn’t do these things for you, either.

Using a computer model and a survey of nearly 250 people, Oishi and co-author Selin Kesebir of the London Business School found that investing in few, deep friendships is beneficial when money is tight and you have little chance of moving somewhere better.

In the survey, respondents rated their current sense of well-being and the nature of their social network, which Oishi and Kesebir compared to the income level and the degree of mobility in their zip code of residence. They found that people living in high-income environments, regardless of how often they move, benefit more from having loose ties with a lot of people. They also are better off with these shallow, broad networks when they move around a lot, whether in wealthy or poor situations. 

In contrast, lower-income households that didn't move as often were happier with a small circle of close friends than with a large number of more superficial relationships.

Americans used to move roughly once every five years, but that has fallen to every nine years, said Jed Kolko, chief economist at Trulia.com. The rate of mobility had been dropping bit by bit since the 1980s, and it really took a hit when the economy went south.

“Mobility goes down when the economy does worse,” Kolko said. “When the economy’s in recession, people tend to move less. There are fewer jobs available for people to move to, and if home prices fall, people can go back underwater or be more underwater and be less likely to sell.”

"If we fully go over the fiscal cliff, it’s likely to slow down or even reverse economic growth," Kolko said. When it comes to housing, "it would definitely slow down and possibly reverse. It would severely affect demand," he said, which means people are more likely to stay put.

Even the people who are moving these days are sticking closer to home, which presumably undercuts the benefit of a far-flung social network. Compared to a decade ago, the number of people who move but stay in the same town is roughly flat, but the number of people relocating across state lines has dropped by 35 percent.

“Having narrow, deep ties is more advantageous in residentially stable environments, particularly if crisis probability is high...," Oishi wrote. "In such a condition, investing in a small number of friends seems sensible and adaptive.” These hypothetical parameters would be reality if economists’ worst-case predictions for the fiscal cliff come true.

So, don’t just tweet this story or post it to your Facebook wall. Pick up the phone and tell your closest friend about it — it could help you survive a fall off the fiscal cliff.

People.com
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Discuss this post

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Facebook friends tend to be a mixture of family, friends and casual acquaintences, at best. You don't need a psychologist to tell you the difference!!

  • 2 votes
Reply#28 - Fri Dec 14, 2012 3:56 PM EST

So when reality hits, the irrelevance of Facebook is exposed.

Got it!

  • 3 votes
Reply#29 - Fri Dec 14, 2012 4:00 PM EST

This is the most idiotic article ever written. And I only finished the first sentence...

  • 3 votes
Reply#30 - Fri Dec 14, 2012 4:15 PM EST

I dumped Facebook for TwoFaceBook. Whole different group of Friends. They owe me money, are obnoxious and stab you in the back every chance they can...You know..more like real life.

    Reply#31 - Fri Dec 14, 2012 5:21 PM EST

    This is the dumbing thing I almost read all day.

    • 1 vote
    Reply#32 - Fri Dec 14, 2012 6:09 PM EST

    Similarly, when you know it's going to be cold outside, throw away your swim trunks and sunglasses, because they will not help you in the cold. Also, when it's cold outside, get rid of your refrigerator because it is silly to have a source of more cold inside your house. If you simply burn down your house, actually, you couldn't be warmer and that is a wise choice for preparing for the cold of winter. This and more sage wisdom can be found within the mind of the author of this piece. Extract the riches found within the author's mind by applying a hammer to the skull, Then all the warm delicious ideas will pour out faster and you can put them in your pockets to share. It's all common sense.

    • 2 votes
    Reply#33 - Fri Dec 14, 2012 7:08 PM EST

    brilliant!

      #33.1 - Fri Dec 14, 2012 7:43 PM EST

      Agree. Well said

      • 1 vote
      #33.2 - Sat Dec 15, 2012 3:59 PM EST
      Reply

      Oh please, keeping or cleaning your facebook friends list will do nothing for you either way if we go towards a fiscal cliff. Most people use facebook to stay in contact with family and friends. What a dumb report.

        Reply#34 - Fri Dec 14, 2012 7:42 PM EST

        I guess we have to go over the cliff Facebook first , huh?

        Ouch! I think I landed on a smiley face...

          Reply#35 - Sat Dec 15, 2012 11:45 PM EST

          It's amazing how quickly even "real-life friends" evaporate as soon as you get into any kind of financial trouble.

          When you've got money, everyone wants you around.

          I say bring on the fiscal cliff! It won't affect me in the least.

            Reply#36 - Sun Dec 16, 2012 5:31 AM EST

            Oh The fiscal cliff!!!!! woe woe woe, dump all your facebook friends because of it.

            NBC, you are full of drek.

              Reply#37 - Sun Dec 16, 2012 9:56 AM EST

              The fact that you would even call the people with whom you have these inane, idiotic conversations "friends" is the sad thing.

              • 1 vote
              Reply#38 - Sun Dec 16, 2012 8:01 PM EST

              Sadly, most of you have FB accounts. Now who's ashamed? Don't you know they sell your info., and employers see the pictures you post! Keep drinking and puking, wearing slutty clothes, smoking bongs, etc. Then wonder why you can't get hired!

                Reply#39 - Sun Dec 16, 2012 10:01 PM EST
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