POVERTY SOLUTION: At zero percent interest rate, advance humans the money necessary to pay their bills on time. Recover these advances from their future income.
Imagine someone claiming their aspiration to be “when I grow up I want to be poor”. Yet seventy percent of the poor remain poor. An expected answer would have been “when I grow up I want to be rich”. Four percent do so. The remaining make it into the middle class. The current picture looks bleak for the poor.
- “Making it into the middle class” concludes that 70% of those who grow up poor remain poor; 26% made it into the middle class and 4% became high earners;
- “Why rich kids become rich adults and poor kids become poor adults” says that
- the environment one is raised in determines their economic mobility
- 4 percent of children from low-income families achieved a college education, compared to 45 percent of children from higher-income families
- low-income families focus on immediate needs, such as food and transportation, rich families invest more on future-oriented purchases that will ensure their well being
- upon graduation, when more affluent students are substantially more likely to enter the workforce with little to no student debt. For less-affluent graduates, chains of student loan debt weigh down any chance of wealth accumulation
- “US Poverty Rate is Still 14.5%; But Yes, The War On Poverty Worked” explains that the poverty rate is down from 19%, when President Johnson’s “War of Poverty” began, remains steady now, year over year, at 14.5%. The rate does not take into account the trillion dollars spent on means tested programs each year. That money is not counted as income to the poor. It is important to look behind the numbers. Today’s poverty measurement is more like the number of people who would be in poverty if government weren’t going to help them.
- Measuring opinion, according to a 2013 Pew Research report “Americans see growing gap between rich and poor”. The poll measured polling sentiment. Democrats said by a 61% to 24% margin that circumstances beyond their control were primarily to blame for them being poor. Republicans took the opposite view: 57% blamed individuals who were poor for lack of effort compared with 28% who said it was due to circumstances beyond their control. That is quite an ideological divide.