Quote:
Originally Posted by Pleasurepays
americans are finding it increasingly difficult to "make ends meet"
really?
huh?
here's a few ideas that might help those who find themselves in this predicament
1) stop living beyond your means
2) stop living on credit cards like a fucking idiot
3) stop buying the coolest phones and nicest clothes and biggest wheels as a priority over health care and saving
4) stop your excessive consumerist bullshit
the "poor" in this nation are living like royalty compared to actual poor people in the world. "poor" people anywhere else dont have a car, nice tv's, mobile phones etc. they are actually "poor" and don't have anything.
your view is the typical liberal/socialist/communist mentality... "you don't know whats best for yourself and you're not capable of making good decisions or taking adequate care of yourself... so lets get government in there to run your life and make those decisions for you and protect you from yourself because government knows best"
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Your view is so far off.
The problem started with the collapse of the housing bubble. Plus the credit bubble.
The problem isn't as you say, people are "living beyond their means". The problem is, those people with "debt", "credit". What have you are PAYING THAT OFF.
Let's say you have one hundred people. Those people have tons of credit and a house worth X. Their house = their "financial backing". They purchase lots of shit on credit because their house and income makes it affordable. They're not living outside their means, their living within the economy's current financial situation.
Now. The bubble pops. Their house is no longer worth X. SO instead of buying all this new shit every month. They begin to pay off that credit. They can still afford their bills and they were not living beyond their means. However because their house has plummeted in value they can no longer rely on it and must pay off their credit instead of spending that money elsewhere.
Let's say 25% of the population begins doing this. Business slowly starts to die off. People are not spending their money to buy shit anymore. They're spending their money to pay off the shit they've already bought.
Business #1 goes under. 1% of the population just lost their jobs.
NOW you have a serious problem with bad credit. 1% of people are now no longer able to pay their mortgages and credit off. This effects the credit market, making the economy tank even more.
People become more tight with their money and begin to spend even less. Money goes to bare essentials and paying off credit.
More businesses go under, and more jobs are lost. The cycle gets worse and worse. This is where we are at right now.
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What these "stimulus packages" are meant to do is to revive failing companies and combat the loss of jobs. It backs the bad loans and credit that is no longer being paid. So the credit market does not plummet even further.
The point is to ward off the end result of a terrible depression. Until people can retain their jobs and income long enough so they've paid off enough credit and saved enough. So that they begin to again SPEND MONEY. As that is the problem right now, no one is spending money. And the majority of those with enough to spend, are spending it on their credit and debts. We need people to get to a point where they no longer need to save and spend on credit/debt, but spend on goods and services again.