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Originally Posted by Jesus H Christ
Great post. BUT let's consider how the middle class decline mentality started. As mentioned, people in the 50's bought their homes or with low interest rates provided by the government. Most other things they'd purchase like cars and such were straight out paid for.
We've all thought about living back in this simple era, but it's not the picturesque life imagined. I've spent an immense amount of time in Russia and outside the major cities the culture/society is still in the 50-60's and this forced me to recognize how the US has completely lost it's values and way.
How so? -Almost all Russians pay with cash/debit and like the 50's-60's purchase homes and cars with cash. They save money like we Americans use to and more importantly, don't buy things they can't afford. Also, average Russian families don't cart the kids to McDonald's every week or negotiate with their kids demands or excuses etc. Russian people have our old principled value system, earn it.
They don't have unemployment like we do or with huge company unions because they're grateful to have a job and standard laws for employment are more then fair with paid holidays, sick days, etc. Employees don't demand higher wages, company profit percentages, or paid healthcare. In short, just because you have a job with a company doesn't mean they owe you anything other then your salary and If you don't like it, leave.
The benefit of this is very low taxes withholding around 15% in total. These taxes do pay for basic medical and a low pension like SSI, but that's it. Again, they have our old value system and this forces Russians to take complete responsibility for themselves something the middle class Americans abandoned decades ago. The only downside is if you're hurt or disabled and not been saving, you're fucked. - Not so picturesque.
The point is I agree with you because the American middle-class fucked themselves with some sort of inflated entitlement. They want a public/Corporate safety net, lower taxes, and increased wages for being a tool in a machine. There is no fixing this and I firmly agree we all need a big slap in the face to wake the fuck up and look what's happening in the rest of the world.
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I don't idealize the 50's, it had is problems like we have ours, I mostly was using it as an example of cost Vs income and the idea of money management.
It seems like most people these days have no sense of self control when it comes to money and they spend first and think later. I know a guy who got divorced about a year and a half ago. He got screwed in the divorce and because of that he was likely going to lose his house unless he could refinance it. Some of us were hanging out one night and tells us about his situation and that he is considering options. He says he is dead broke and will likely not be able to make the next house payment. The very next day he goes out and buys one of those Dyson ball vacuums that cost $600 and he gets a new droid cell phone. Because he had no free upgrade he paid the full $500 for the phone. Three weeks later he says that if he can raise $4,000 he can get a refinance and could likely keep the house. He has some stock he can sell, but that puts him about $2K short. I remind him of the vacuum and cell phone. Had he not got that he would only be about $900 short.
In the end he cashed in his stock, took a trip to vegas and let the bank take his house.