by Outcast_Searcher » Tue 05 Jun 2018, 12:06:26
$this->bbcode_second_pass_quote('Newfie', '
')Perhaps the difference is the way I see folks with little struggling forward. Most often the “rich” guy has come from a privileged class. Maybe he is smart and motivated, but the poor person has to be smart, motivated, and overcome a culture designed to keep them down.
To be successful, anyone not born with a silver spoon in their mouths , has to be smart, motivated, and compete.
So for the first two, there's certainly no difference between "the poor" and the 95ish percent.
Now, how much of the problem with "the poor" is "a culture designed to keep them down" and how much is bad decision making, lack of motivation, and terrible money discipline?
Yes, if people are stupid with money and make bad decisions, then pretty much all financial institutions including any that loan money will "take advantage" of the poor by charging them high interest rates and high fees.
But for a huge proportion of them (and certainly all of them I've tried to work with over decades), a moderate amount of money discipline (starting with saving a little) and better decisions could avoid the vast majority of that by reading a little and making better decisions.
Examples:
1). High credit card debt with usurious interest rates, since it's unsecured debt.
2). Payday loans, in any form I've read about.
3). Pawn shops. (Similar rates and tactics as payday loan outfits, but they call it a "storage fee" instead of usurious interest rates on steroids).
4). Bank fees.
5). High auto insurance rates for people with low credit ratings.
6). Usurious used car loans (even though they have the car for collateral).
And on and on.
...
Is this the culture "designed" to keep poor people down?
Now, I think our public educational system should do a FAR better job of basic financial education, but since it does such a poor job generally re things like science, math, and literacy, that's not likely to happen.
But notice that no one is putting a gun to anyone's head to force the bad decisions. No one is forcing anyone never to save a dime or to always spend all they can earn and borrow. No one is preventing anyone from acquiring more skills to move up, or to get a second job for awhile to kickstart some savings if they can't due to current budget needs.
In 100% of the cases where I've tried to help poor families, they spent every spare dime of help they got, ignored all the advice and information to help them get ahead, and ended up in the same place they started.
But this is 100% the fault of what? The rich? Sorry, I just don't find that credible. And I don't see how just throwing more money at the issue is money well spent.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.