Aristocrats should help the poors Essay Example | Topics and Well Written Essays - 500 words

Aristocrats should help the poors - Essay Example I completely agree with this statement since the rich have enough money to survive any crises, in other words their money deposit and storage allows them to do this. But those people who depend greatly on their monthly salaries and wages lose everything with their jobs. They have no big deposits as well as no securities capital and that is why crisis struck the poor first of all. But the author focuses not on the poor but rather on the middle class since it is the main constituent of the successful economy. It is no way a secret that the world crisis started from the USA, where â€Å"the fat cats† (Herbert ) as the author calls them didn’t manage to cope with the mortgage sphere. Let’s remember the flourishing USA: a happy middle class with a quite high annual income that can afford having a house, a car, and several children and to be in easy circumstances. With the great rate of unemployment people have no money even for food, to say nothing of a car, and rent. As time approaches to Christmas the situation becomes even more unjust and obvious. â€Å"Even as millions of out-of-work and otherwise struggling Americans are tightening their belts for the holidays, the nations elite are lacing up their dancing shoes and partying like royalty as the millions and billions keep rolling in†. (Herbert, 2010 p.1 ). By saying this the author wanted to show that the middle class has to refuse something in order to cherish the tradition of gifts giving, while the rich of the country even are not ashamed of throwing parties and pretending to be more modest. The most offensive thing is that those in power and with money just ask the nation to stand the tough times. â€Å"So here we have the billionaire and the millionaire telling the poor and the struggling - the little people - that they will just have to make do with less.† (Herbert, 2010 p.1). It would be funny, if it wasn’t the real life. The nation can do without some things but it cannot do without the

Most Americans Should Not Use Credit Cards Essay

Most Americans Should Not Use Credit Cards - Essay Example The credit card industry has evolved so drastically that it is predicted that an average number of credit cards per family is around 3.5 (Nilson Report, 2010). According to another statistics, it is reported that an average American with a credit file is responsible for $16.635 in debt; this amount is reported after excluding the mortgage charges (U.S News and World Report, 2008). Credit cards have had a huge impact on people spending spree and it is only because of this extravagant spending style, credit cards consumers have had to face severe bankruptcy issues. It was reported that the bankruptcy filed during 2009 amounted to $1.4 million dollars; this had increased by 22% compared to the figures of $1.09 million in 2008 (AACER, 2010). This bankruptcy rate usually comprises of young adults and it is reported that young Americans have the 2nd highest rate of bankruptcy. These increase bankruptcies, heavy spending and huge debts are all a result of psychological behaviour. Americans tend to live in an economy where debt has not been given any significant value by many households. Mortgages and other similar loans are a part of almost every American household. Besides that, people tend to have an emotional attachment to paper money, which if spent, is given to the provider of goods/service whilst credit card/plastic money has no sense of emotional feeling attached to it when it is being spent because of the psychological belief that nothing material is being given at the instance of buying. This reason makes people more vulnerable to heavy spending and eventually they end up in critical positions such as bankruptcy (Schor, 1998). Credit card use has overshadowed the entire world economy. According to Federal Reserve G.19 report, the total U.S revolving debt amounted to $793.1 billion as of May 2011 and the total U.S consumer debt as of the same date amounted to $2.43 trillion (Federal Reserve Report, July 2011). The amount of U.S consumer debt increased to 2.45 trillion as reported in the September issue of the G.19 report. Hence it is clearly evident that the expansion of credit led America to severe consumer debts and this debt has not been stopped, the credit is still being offered to the consumers and it is often argued that if this trend continues, the credit card industry would be highly susceptible to downfall and failure that would further lead to another economic collapse. This collapse can be prevented by using credit cards on a minimal level or paying off the dues as they fall due. Credit card companies tend to offer credit cards to customer on increased interest rates in order to reduce its use. This pullback is affecting the creditworthy consumers and it further increases the danger to already endangered banking industry. Credit card companies had to write off $21 billion in 2008 as bad credit card loans, issues like these clearly suggest the credit card industry would definitely affect the economy in a negative manner (Dash, 2008). Finally it is said that the Federal Reserve Bank is also one major factor that can lead to an economic collapse. This is because the Fed has enough power to lend to anyone whom it desires i.e. without the consent of the Barrack Obama’s government; hence only favoured institutions are bailed out when the total economy falls prey to this downfall (The Economic Collapse, 2011). The payment pattern of the credit card debt is such that according to