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> However, many poorer folks need to learn self-control and the power of saving. Counterpoint: the many ways that our economic system can wipe out whatever sav
by g_sch 8y ago
> However, many poorer folks need to learn self-control and the power of saving.
Counterpoint: the many ways that our economic system can wipe out whatever savings you might have (medical costs, unemployment, legal costs that fall heaviest upon the poor) make spending money on pure luxury - or even the lottery for that matter - a perfectly rational action.
If you don't believe your savings will be there tomorrow, why not spend it today?
- opportune 8y agoI know this is well studied and has to do with the poverty mindset, but that doesn't mean it's mathematically rational. Sure, if you live paycheck to paycheck and somehow this week have an extra $5 leftover, you might as well spend it. But if you have $80 left over, after a year of saving you could have a reasonable emergency fund.
- g_sch 8y agoI think this has far more to do with the fact that poverty, especially in the US, means frequently going into debt or bankruptcy even just to survive. If you're working for minimum wage, your landlord raises your rent, and you get an unexpected medical expense at the same time, no amount of disciplined saving in $5 increments is going to save you. It's not a mindset problem.