@Tarantado wrote:
@JASFLALMT wrote:
Good lord. I just read those. How awful, but I can't even imagine how it's possible.
Why are so many people in our country living beyond their means?
Because so many of the people in our country are financially illiterate.
Financial illiteracy is part of it, but, of course, not the whole story. I recommend people also read Elizabeth Warren's book, The Two Income Trap (2004 and reissued for 2016).
She dispels myths of people buying luxury items and blowing their money on discretionary stuff as the reason people are failing financially all over America. They take census and survey data across decades of time and look at the costs of living for basics, such as:
housing
transportation
child care
healthcare
(student loans - I don't remember if this was included, but should be!!!)*****
Then, they track that with wages across the same time + on what people have left over as discretionary income. The findings?: wages have remained flat for 40 years in America, while the costs of living have HUGELY gone up. She recalls growing up that nearly all men routinely wore suits, had leather shoes, and nice briefcases - even those working "lower"-end jobs (shoe shine boys even would wear nice pants and button-up shirts). You would think people dress "better" over time, but she says, NOPE. It was much more common to see even lower-level workers wear nice clothes in her day growing up (even in a simple hardware store). Nowadays, people in America just cannot afford these same things and your work attire can just be t-shirts sometimes. Her point is that some sectors of conservative talking points about how the poor (or even middle-class) just blow all their money on non-necessities is just not true. They look at people's budgets and find that Americans spend practically ALL their money on those four things listed above with so little left over that they are not using it to by luxuries. Mathematically, it's just not true/possible. Might SOME do that (credit cards?)? Sure! But, she argues that the vast majority are financially responsible and it's been lagging wages + dramatically rising COLs that's made most Americans have much less relative to 40-50 years ago. Many probably do rely on CCs or payday loans to survive (make up the diff.), which can lead to a never-ending debt trap too.
Here's a lecture she did over a decade ago on the book/subject: [
www.youtube.com]
Having said that, I also don't understand how people can afford FG.
Their small burgers are $8.00 (7.99) here!
*****I know lots of people with $100,000+ student loans. Putting aside whether or not it was a good idea, that part of your budget really eats up a lot! The interest, alone, is thousands of dollars on top of the principal every year.
Edited 5 time(s). Last edit at 10/18/2019 05:55AM by shoptastic.