3 ms·

I believe the financial literacy problem is more widespread than retail workers, it actually affects a huge portion of all workers (and non-workers). Just look

I believe the financial literacy problem is more widespread than retail workers, it actually affects a huge portion of all workers (and non-workers). Just look at the average credit card debt, etc. The average person has terrible credit because they do not pay their bills, they are not reliable or trustworthy financially, not because they are bad people, but because they are incapable of managing risk appropriately. Of course, there are legit reasons to have bad credit (medical bills etc) but most americans are not that. If most people you know are financially literate, I think you may be in a bubble. I was too, until I had my first few bad jobs. > Minimum wage solves a collective action problem. You don’t have to be financially illiterate to have been fucked over by a collective action problem. Also true and kinda obviates the need for this discussion at all. This crap should not be legal, full stop.

vorpalhex 3y ago
> Just look at the average credit card debt, etc. The average person has terrible credit because they do not pay their bills, they are not reliable or trustworthy financially...because they are incapable of managing risk appropriately I agree with you that most financial mistakes come from not understanding risk. I don't think it is necessary for every end consumer to deeply understand risk and at no point in human history have we asked them to. Risk is really, really hard and even very intelligent and capable people whose jobs are to professionally analyze risk fuck it up. Historically finances have been simple enough that small rules (eg save 10% of your paycheck) were sufficient to help a consumer offset risk. These rules no longer are. Why? There's a lot of small factors for one. A big one being subscriptions/payment plans/other unescapable recurring costs. Another one is relatively complex financial instruments (payday loans) being available to consumers and marketed in confusing and predatory ways. (This isn't an exhaustive list at all) > This crap should not be legal, full stop. We are taking an extremely desired and powerful tool away from the average consumer. A tool they like and use! We have to at least understand the value prop and ideally replace it if we are to ban it.

vorpalhex 3y ago

> Just look at the average credit card debt, etc. The average person has terrible credit because they do not pay their bills, they are not reliable or trustworthy financially...because they are incapable of managing risk appropriately I agree with you that most financial mistakes come from not understanding risk. I don't think it is necessary for every end consumer to deeply understand risk and at no point in human history have we asked them to. Risk is really, really hard and even very intelligent and capable people whose jobs are to professionally analyze risk fuck it up. Historically finances have been simple enough that small rules (eg save 10% of your paycheck) were sufficient to help a consumer offset risk. These rules no longer are. Why? There's a lot of small factors for one. A big one being subscriptions/payment plans/other unescapable recurring costs. Another one is relatively complex financial instruments (payday loans) being available to consumers and marketed in confusing and predatory ways. (This isn't an exhaustive list at all) > This crap should not be legal, full stop. We are taking an extremely desired and powerful tool away from the average consumer. A tool they like and use! We have to at least understand the value prop and ideally replace it if we are to ban it.