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To the vast majority of companies, poverty is not profitable (prison industry and loan sharks being notable exceptions). In fact to most companies it is critica
by m12k 10y ago
To the vast majority of companies, poverty is not profitable (prison industry and loan sharks being notable exceptions). In fact to most companies it is critical to have an affluent market to sell things to. It's just not profitable for them to be the ones ensuring that this affluent market exists rather than let it be someone else's problem. It's a classic tragedy of the commons.
- macawfish 10y agoIf affluence itself is defined in its relationship to poverty, then yes, then making money off of affluence is in essence making money off of poverty. Any kind of market that plays to peoples sense of status is playing into class dynamics born out of the existence of relative poverty.
- tclancy 10y ago>In fact to most companies it is critical to have an affluent market to sell things to. I think you may be describing what you see around you. Plenty of companies make plenty of money specifically because of people being in need. Think of all the fast food and microwaveable crap that gets sold simply because the buyer either doesn't have a good way to keep food or doesn't have the time to make a "real" meal as they get off of one job and have to go right to the next.
- TeMPOraL 10y agoOr, in general, lots of cheap crap products that sell well because poor people are extremely price-sensitive and unable to accumulate enough money to buy a better (and in the long run cheaper) product.
- cortesoft 10y agoYeah, sadly, the reason things are often so expensive for poor people is because it ISN'T profitable to service them. This means that there is little competition for their business and things cost a lot. For example, rent for poor people is way too high. So why don't other people come in and offer to rent to them for less? Well, poor people have trouble paying their rent a lot of the times. They have a high chance of failing to pay, and that is costly to a landlord. So that risk is priced into the rent. What this ends up meaning, though, is that if you are poor but always pay your rent on time, you are paying for all the people who fail to pay their rent.
- Banthum 10y agoThe thing is, if you're the kind of person who always pays their rent on time despite being poor, you won't be poor for long. So the population of poor people ends up being self-selected for the personal qualities that lead someone to not pay their rent on time.
- cortesoft 10y agoThat simply isn't true. There are a lot of poor people who live within their means, who do not go into debt and who do not miss rent payments. They simply don't make much money at their jobs, and they go without a lot of things in order to make ends meet. They live in cheaper housing, don't have a car, don't eat out, and go without luxuries. They aren't suddenly going to stop being poor just because they are responsible with their money. Their job will continue to pay them low wages, and they will continue to stay poor but stable. This isn't a character flaw to have a job that doesn't pay well.
- AstralStorm 10y agoUntil they hit a crisis they cannot deal with given their meagre means. This could be a health problem, workplace closing, unplanned parenthood, important item breaking... and way more.
- TeMPOraL 10y ago> So the population of poor people ends up being self-selected for the personal qualities that lead someone to not pay their rent on time. For qualities? Yes. For personal qualities? I disagree. It's easy to imagine someone someone not being able to keep up with rent due to circumstances out of their control. I can see it as a kind of potential barrier. Those who can cross it will rise from poverty. Those who can't get stuck in it.
- mcbruiser2 10y agoExactly. Same with interest rates on loans. If you have a bad FICO your interest rate will be higher because you're considered riskier. Higher risk, higher the reward that's how business works, generally. Business != charity.
- gtowey 10y agoPayday loans. Check cashing. Rent to own. Overdraft fees, minimum balance fees. Interest on credit cards, late fees & fines. Debt collection. For profit prisons. Selling the same crappy built-to-fail cheap consumer products over and over again. I think you underestimate that when you say "loan sharks" that when you're poor every bank and financial institution basically feels like a loan shark when you pile on all the fees and hidden charges. There's no escape. The poor are a hugely profitable market where their poverty is used like a weapon against them.