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A major reason poor people don't save is the inflationary currency and government control of interest rates (plus other central bank policy) encourages debt ove
by ponow 2y ago
A major reason poor people don't save is the inflationary currency and government control of interest rates (plus other central bank policy) encourages debt over saving. We slowly put a noose around our necks because our laws put lights on that runway. We need major reform to get back to a saving mindset. It'll be a world where the government will borrow and print far less money.
- fvdessen 2y agoI'm looking at the data and there is zero relationship between inflation, interest rates and personal savings in the USA. People save in time of crisis (2008, covid, etc.), and don't when the economy is good (1990 -> 2007)
- lancesells 2y agoPoor people don't save because they are poor and there's nothing to save. It costs loads more to be poor than to have some money. You won't save money by buying up-front, if your credit is low you'll pay more than a person with more money, you miss payments and the late fees rack up, you overdraft and your fees add up, you can't go on autopay to save money because you risk going into overdraft, etc. Maybe if the 1% didn't own 50% off all the resources (money) than poor people could find some money to save.