Only higher taxes on the rich will save us from riots in the street

I've been on this planet more than 50 years and have never felt "enticed" by a bank or credit card company into going into debt.

On the contrary, knowing what kind of institutions they are entices me to stay the fuck out of their clutches.

 

Same here. Unfortunately, though, there's an enormous group of people -- like, say, well over half of America -- that doesn't know shit about finances. Although maybe my parents never "gave" me anything like a new car in the driveway, they certainly gave me that, which is the #1 reason I'm where I am now. Not everyone gets that, though, as "The Millionaire Next Door" and "Rich Dad Poor Dad" and probably countless other more learned but less entertaining books make clear.

 

“Anyone who has ever struggled with poverty knows how extremely expensive it is to be poor.”

― James Baldwin

 

I don't think that's true. I think there is a large group of people who have a basic understanding of finances but they would rather have a nice car now or a nice house now or a new fridge or a trip to Disney World and worry about paying it later.

With any luck, they'll be dead by 62 and never have to pay for failing to fund their 401K.

 

There's a "large group" of people of almost any stripe in America. But the numbers are pretty clear that very many people don't know jack shit about money, and that includes a lot of people that you'd think would know.

Freakonomics has been beating this drum for years. They cited one study about high school kids generally not being able to answer the question "if you had $100 and it grew at 2 percent interest, how much money would you have after one year?"

A couple of months ago they summarized another study:

http://www.freakonomics.com/2011/06/07/more-depressing-news-on-americans-financial-literacy-or-lack-thereof/

The most worrisome finding is that many people do not seem well informed and knowledgeable about their terms of borrowing; a sizable group does not know the terms of their mortgages or the interest rates they pay on their loans.

So, yes, people are responsible for their debts. But the banks and credit card companies are driving big armored trucks through the gaps in the general public's knowledge.

 

that train left the station years ago.