Economics - the shrinking middle class?
I agree that the middle class is disapearing. My question is what roll does poor financial education have to do with this? Do things like Rent-to-own, credit cards, Tote-the-note car lots, check-cashing/payday loans rackets have something to do with this. Do the middle class, lower middle class and poor have a propensity to make poor fiscal decisions using things like listed above, and do the poor help themselves stay poor by using them?
Why does the government allow operations like them to continue to operate?
Answer:
There is a limited amount of wealth in the world, which is concentrated disproportionately. In addition, much of the money is centred within particular groups or families, whose fortunes go up, taking away from the wealth of the lower "classes".
Hundreds of years ago, even up to mid-way through last century, it used to be that many "little" people could become wealthy entrepreneurs with little capital. This is no longer the case - at least, not on the same scale.
Instead, class and economics combine to make it very hard for people in lower socio-economic groups to break the poverty cycle. A lack of education in poor areas, and of adequate support (include finance counselling) means that more people are finding it hard to manage their money. Combine this with rising costs and lowering wages and you find the middle class goes either way - up to being filthy rich, or down to poverty.
Em
Although the government has gone a long way toward becoming a nanny state, in which every person is protected against the consequences of internal failure or external catastrophe, we are not yet to that point -- and I sincerely hope that we never get there. The best defense against the problems you cite would be realistic education in the public schools. It is not available there now; much of what I learned about the mathematics of finance came from reading books of my father's.
You are falling victim to the old "say it often enough and a lie becomes the truth" trick. The middle class is not disappearing, unless your concern is that too many Americans are graduating from the middle class. A closer look at the facts, with some discipline, would help to alleviate your concern.
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Why does the government allow operations like them to continue to operate?
Answer:
There is a limited amount of wealth in the world, which is concentrated disproportionately. In addition, much of the money is centred within particular groups or families, whose fortunes go up, taking away from the wealth of the lower "classes".
Hundreds of years ago, even up to mid-way through last century, it used to be that many "little" people could become wealthy entrepreneurs with little capital. This is no longer the case - at least, not on the same scale.
Instead, class and economics combine to make it very hard for people in lower socio-economic groups to break the poverty cycle. A lack of education in poor areas, and of adequate support (include finance counselling) means that more people are finding it hard to manage their money. Combine this with rising costs and lowering wages and you find the middle class goes either way - up to being filthy rich, or down to poverty.
Em
Although the government has gone a long way toward becoming a nanny state, in which every person is protected against the consequences of internal failure or external catastrophe, we are not yet to that point -- and I sincerely hope that we never get there. The best defense against the problems you cite would be realistic education in the public schools. It is not available there now; much of what I learned about the mathematics of finance came from reading books of my father's.
You are falling victim to the old "say it often enough and a lie becomes the truth" trick. The middle class is not disappearing, unless your concern is that too many Americans are graduating from the middle class. A closer look at the facts, with some discipline, would help to alleviate your concern.
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