Quote from: Findingnemo on April 14, 2020, 06:08:09 AM

Quote from: exstasie on April 13, 2020, 08:59:14 PM

How do you save when wages don't rise and price inflation is up 20% over a decade? Half the US population is considered impoverished or low income. With skyrocketing rent, health care, and food costs and completely stagnant wages, much of the country can barely get by. A single family medical emergency will ruin people financially.

People who repeat stuff like this fundamentally don't understand economics or human nature. When hundreds of millions of people are this desperate, how do you expect them not to take loans if offered? Do you have any idea how many people buy groceries with credit cards?

You'd rather they starve, right?

If poor countries had this dynamic, you can be damn sure their residents would be taking on more debt. The cost of borrowing money in India is 3-4x that of the US. Based on rental value, renting in the US is also 3-4x as profitable for landlords. Do the math. Americans must spend much more of their income on basic living expenses (like rent) while the cost of borrowing is immensely cheaper. What exactly would you expect to happen?

Loans keeping the working-class people poor so they need to do something if they want to get out of the inflation rate, I am not saying they shouldn't take loans but they are taking loans for what, most of the people taking loans to buy liabilities and many think that they are buying assets, for example, buying a new car at loans is really not worth it, and if you think new car is going to make you proud then you will be paying interests forever until you/ we die.

The cost of living is high in USA but if we compare the wages of an Indian then we know the difference in their lifestyle.

All they have to do is to buy assets not the liabilities.

Right, car loans. That explains everything. Roll Eyes

I'll be sure to tell all the poor people I see, "just buy assets, not liabilities." I'm sure that'll solve their problem of having no money to begin with, and of wages stagnating behind inflation. I'm sure it'll reverse the course the American economy has been on since the 70s.