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@MRSketch09
8 ай бұрын
Thanks, really interesting video! As someone who's "working poor".. um, this hit home. Made me look at google maps a WHOLE lot different, on store locations etc... Especially your comment about "food deserts"
@TheMagdalenaBB
9 ай бұрын
There is also the factor of not buying a high quality item that will last as opposed to a lower quality item that you will replace faster. You also can't buy in bulk if you don't have the space or money.
@rogergeyer9851
5 ай бұрын
So use some discipline, save for a while, and THEN buy in bulk, or at least at places where prices are low. And quality lasting longer is only true to a point. For example, a fancy Lexus for $100K lasts little or no longer than my no options added Toyota Camry which cost more like $20K (I dickered hard). And my insurance is cheaper, get better gas mileage, and repairs cost less (they charge more for luxury cars for lots of things). Oh, and it's the nicest car I've had in my life, since cars keep getting better and have more features built into the base price over time. Just throwing out lots of tropes does NOT mean you're being accurate.
@tomlxyz
3 ай бұрын
@@rogergeyer9851 you can't save anything if you're already living paycheck to paycheck. And you can't save up to buy food in bulk if you need to eat something now. Luxury products aren't quality products. It's about quality products and not everyone can afford those in one go. Those then have to resort to cheaper versions which are more expensive in the long term.
@syang1390
9 ай бұрын
I'm surprised you didn't mention kids.... kids are expensive. Idk how in the world did my parents do it with 6 kids. We were definitely poor and seriously lived the bare minimum!
@antilogism
8 ай бұрын
Not as expensive as you may think as long as things go smoothly. There's a lot of risk though. We found NICU can be brutal so insurance is vital---I almost pitied our insurance co---almost. Six would give me 6x the gray hair!
@syang1390
8 ай бұрын
@@antilogism it wasn't too bad, but I believe my parents never showed how stressed they were. We got neglected with health care and dental. Parents couldn't afford to pay the difference. My teeth til this day will never recover. Other than that I came out alright. But having kids raise other kids while parents worked was sad.
@IrisP989
7 ай бұрын
Kids are definitely expensive. We are currently spending $300 a month on average on our child's special formula. He might start preschool soon. That might be around $1K in a non fancy, no meals provided preschool. After school activities for our eldest are up to $500 a month (it depends if there are 4 or 5 weeks in a month), etc. Yes, it will change later in life but then there will be other costs to replace these (braces potentially, after school activities for both, etc.). That's 2 kids in a very high cost of living area.
@rogergeyer9851
5 ай бұрын
Yes. Having kids, especially lots of kids, before being VERY financially secure is financially unwise AND can be very hard on your kids -- which isn't fair to them.
@afroxyzz
5 ай бұрын
kids are not a property which you deem expensive or not
@AR-ln7ln
9 ай бұрын
I have written it before, but here it is again: many low income jobs do not have with a contract or even punch in machine. I have worked at several places that didn't pay required minimum. Some paid nothing but tips. One place even kept some tips that were on credit card. I was too inexperienced to move on to a next place fast and/or scared to lose my job or fight with the employer. I'm completely missing work history for two years that I knew I was working 40 hours a week. The owner went on to open a 2nd restaurant after saving money by not paying his workers. It's hard to get out of poverty if you don't even get paid all the money you earned. Some places didn't pay for training, so many, many hours of working for free. This does not happen to me now that I'm middle class. If it hadn't happened to me, I would even dare to argue that it's impossible to not get paid for work done.
@tehnoobface
9 ай бұрын
Not sure if this was mentioned in the video, but financial literacy is also not taught as often to individuals in low income communities. It’s not taught in schools, so it usually comes down to an individual’s background, leading to more financial literacy for those coming from wealthy families vs. everyone else.
@humphrey
9 ай бұрын
agreed - good point
@antilogism
8 ай бұрын
Back in the day we had home ec. Not so much investing but some on budgeting, credit-score, loans, savings & interest, banking & fees seen in everyday life.
@Kevinleehiltonjr
8 ай бұрын
"financial literacy" is a stupid term. Money management is the term. No one is trying to decipher numbers like it's a foreign language.
@ThirrinDiamond
2 күн бұрын
@@Kevinleehiltonjr i am but i have dyscalculia 😂 need a whole ass dictionary for 1+1 on bad brain days lol
@traviswingo
9 ай бұрын
It's crazy that somehow $12,761 per year ISN'T poverty.
@triple_gem_shining
9 ай бұрын
But it is.
@humphrey
9 ай бұрын
I know, Im not sure how they define the poverty line.
@kfox9650
9 ай бұрын
Whats worse, thats less then the minimum wage as a full time job.
@Krashoan
9 ай бұрын
@@DJR___ Should probably depend on number of dependents and location, but as a single person in an expensive area, my necessary expenses are not nearly that much.
@Rometor
9 ай бұрын
If they change the property line then the tax brackets change so means less taxes for them. It’s all planned to the formula
@tHebUm18
9 ай бұрын
Thank you for making this video. Not because it personally relates to me or I was unfamiliar, but because so many folks in the Finance YT space (by way of comments on such content) clearly don't understand this and correspondingly lack empathy for the less fortunate. As someone who is doing fairly well, I will complain about some things our gov't spends money on (e.g. the military industrial complex), but will never complain my taxes are too high and look at people facing these sort of systematic disadvantages as getting out of paying their "fair share." If anyone is getting out of paying their fair share, it's the rich.
@lifevest1
9 ай бұрын
Keep in mind too. Rich people/famous people get A LOT of complimentary treatment whether it’s at restaurants or other businesses just because they visit the business.
@kenziedicken9512
8 ай бұрын
this is why it bothers me when people say “money isn’t real” or “money doesn’t matter.” it’s definitely real and it definitely matters when you don’t have it… i’ve come into a larger income lately and it’s insane how much less stressed i am about my bank account. i don’t check it 24/7 waiting to see if i need to transfer from savings or ask for help so i don’t overdraft like i used to.
@leonrobinson8180
8 ай бұрын
Same here. I'm not rich, but I'm comfortable, and came from a poor background. The difference in lifestyle is dramatic. I don't stress about monthly bills anymore as I have a paid off credit card with a high limit, so no late fees. Banks are pushing loans on me rather than harassing me to repay debt. My coworkers were complaining about getting paid on time, but I have 3x my income saved in expenses, so I'm indifferent. I make better deals and get more opportunities now because I'm not financially desperate. As for groceries, I can afford to buy in bulk now, so I save on the unit costs. I also purchase healthier foods. Not fried, cheesy, overprocessed crap.
@kenziedicken9512
8 ай бұрын
@@leonrobinson8180exactly. worrying about money takes up a ton of of time and energy.
@rogergeyer9851
5 ай бұрын
"Poor" people being financially FRUGAL would do FAR more to help them than constantly worrying about their current bank balance.
@leonrobinson8180
5 ай бұрын
@@rogergeyer9851 No it wouldn't! Frugality doesn't work for poor people because they have little to no disposable income. Better for them to learn new skill sets to INCREASE their income.
@kenziedicken9512
5 ай бұрын
@@rogergeyer9851there’s only so much frugality you can have though… and i’m not really sure what this has to do with the point…
@vyndralys
9 ай бұрын
Another fun one is PMI. If you don't have enough for a 20% down payment on a house, the bank will charge you an extra $100 or more per month. This extra charge does not go towards your principle.
@Aryck143
9 ай бұрын
Learned my lesson the hard way. Paid thousands for that stupid PMI before finally being able to get rid of it
@user-tb7rn1il3q
9 ай бұрын
If you can’t put down at least 20% you shouldn’t be buying a house.
@MeowmyandMe
9 ай бұрын
Haven't watched the video yet but just going by the title I agree: poor people don't have the excess funds to take advantage of big sales, bulk buying or cash discounts for expensive things like furnace repair (I wrote a check recently for $8900 to get a new furnace and AC from an independent contractor who required full payment, which represented a huge discount from the $13,500 I was quoted by a big company that would accept financing payments)
@Mario_Fields
9 ай бұрын
Also, a major factor to note is that the Poverty Line in the United States doesn't factor housing cost, medical cost or transportation cost. It is severely understated. In fact, a lot of government programs often have to multiply the poverty line by 1.5 or 1.75 program edibility or in the case of the new student loans income based repayment plan have an 2.25 multiplier of the poverty rate before one have to pay towards the loan.
@BigOnAnime94
9 ай бұрын
Median rent is currently around 20K a year, yet the poverty line for a single person is way below that. The way the poverty line is calculated is very flawed on purpose so whoever is in power can look good.
@jonathanthainguyen
9 ай бұрын
Thank you so much for addressing this. There needs to be less focus on people and blaming them and more focus on addressing the systemic issues that keep people in these patterns.
@tuanoful
9 ай бұрын
I knew all this already, but seeing it well articulated just makes me mad. Low income communities have such a hard life... I drew the lottery just by being born in a decently established family.
@Flownthecoup23
9 ай бұрын
Big box stores know if they are in poor neighborhoods, they’ll be robbed blind. Just like what’s happening today 😊
@mikezerker6925
9 ай бұрын
Exactly why these deserts occur… it’s an unfortunate cycle! Open a store in a poor area… store gets robbed repeatedly to the point it’s no longer feasible to do business there… store closes… food desert results.
@carterwgtx
9 ай бұрын
Aw was described to me by an exceptionally wealthy person during one of the very, very rare interactions I’ve had with those folks (very wealthy here is defined as not a billionaire…but he’d round up to a billion). He said “money is like gravity, wealth builds wealth and money attracts other money.” There is no incentive in a true capitalistic system to sell things or make loans to people with no money (it’d be a very dumb business plan). Without government policy the poor will never get wealthier because when your in survival mode, you meet your needs first…and then wait until you get paid again so you can keep surviving. It is extremely difficult to get out of this cycle, and it’s patronizing to presume it simply a matter of personal behavior and choices as though it’s a moral failing to be poor instead of the result of deliberate policy decisions.
@haucks
8 ай бұрын
I disagree. I was homeschooled. I paid for my undergraduate and medical school without any help. I worked for less than minimum wage as a resident for 6 years. I now make 700k a year as a specialist physician, and am a multimillionare. The difference between me and other people who are still poor is determination, work ethic, focus, resilience under adversity, delayed gratification, and good life choices. The only thing big I have ever received from the government is a tax bill.
@carterwgtx
8 ай бұрын
@@haucks Good for you, and it must've been decades ago (if that story is true at all). And you definitely had help, you had a state accrediting your home schooling, a parent/care giver willing to home school you, went to a university system built by state/federal $, went to a hospital which patients pay for with medicare dollars...I could go on. We live in a society, not an island. Average cost of undergraduate and medical school in tuition alone is about $250k in the US (maybe you went super cheap, but we use averages in society not outliers - a specialist physician should understand)...working 10 years at minimum wage today, lets do some math shall we $7.25 minimum wage x 40 hrs/wk/52 wk/year x 10 years or schooling (undergrad+medical school)= just over $150k...meaning it would literally be impossible to pay your own way in the modern schooling system at minimum wage. BTW I'm a Professional Engineer, and I worked my ass off in the oil field to pay my way.
@robyn_southafrica
9 ай бұрын
Crying because everything you're saying is 100% true 🥺🥺 but the way you brought forth this video (like a lot of your others) is so thought provoking, humble and respectful and i respect you for that, Humphrey!
@jacksonbilly9979
9 ай бұрын
We all appreciate the work you put into your videos sir, great channel
@humphrey
9 ай бұрын
I appreciate that!
@thorn.charmer
8 ай бұрын
I used to live in a super cheap, crappy apartment because I was broke and I was always surprised at the various "services" that were trying to be sold to me in the name of "help. For example, there was one service where I paid $15/month and they "prepaid" my rent for me then gave me up to 30 days to pay it back to them. We also had to pay for water via gallon dispenser because our tap water was non-potable. Laundry cost $2.25 a load and the washers were tiny. My car insurance was really high because it was crap part of town, and the complex charged all sorts of fees and penalties for things like noise complaints, having dirty patios, etc., etc. Which they were super liberal about giving out. We also had predatory towing companies that would come through and look for expired tags. Once I got a better job, I got a better apartment and while I pay a little more in rent I have none of those issues and am actually paying less in the long run here. It's unreal.
@Smalex1991
6 ай бұрын
They don’t put nicer stores in neighborhoods like that because of the crime. My mom works at a grocery store on the edge of an area like that and there’s constant theft.
@ayushnayak6138
8 ай бұрын
The system is rigged. We should do something about this. I will work towards it on my end for my country. I hope the American people could do so too.
@AntiAshley
8 ай бұрын
Being poor is more expensive because being stupid is expensive. Cause versus correlation. I thought this paradox sounded alarming until I tried explaining it to somebody else. People could make different choices almost every time. A lot of people stay poor because they are fine spending money on convenience they cannot afford.
@meister9416
8 ай бұрын
Yeah, I thought the same. I mean if don't have a home? Why don't you buy a house right?
@AntiAshley
8 ай бұрын
@@meister9416 Hilarious. But overdraft fees, cc interest, and payday loans are all easy to avoid with planning and self-control. Many poor people lack that. That is why they are poor, and that is why many poor individuals have iPhones, manicures, and sneakers they cannot afford.
@rubberroast1598
8 ай бұрын
Being poor is tough. There are things one can do. Use the free education everybody here is entitled to all the way to high school. Dont have a bunch of kids you have no means to support, that will put both you and your kids into even deeper poverty, protect your credit score. There are cases of truly innocent people in poverty situations, like orphans, mental or physical disabilities, but most play a role in their situation by lack of responsibility. I should know, I was an orphan , instead of playing victim I used the opportunities this country provides. Nothing was given to me.
@fdm2155
8 ай бұрын
Well, a HS diploma isn't gonna get you very far! When I graduated in the 1980s I was able to attend college using state and federal grants that actually covered the cost of my 4 year university. I grew up in a big city with multiple colleges so I was able to live at home to save money. Today, someone in a similar position would need at least $40K (probably much more) in student loans to do the same thing. Also, it's not just having kids... if you have only a hs diploma and no additional skills/education, you're probably struggling to get a job paying $15/hr. So even as a single person you're gonna be struggling to pay for basics in most places. So let's get rid of the ridiculous 'pull yourself up by your bootstraps' BS. That worked 40 years ago, not so much these days. We've gotten rid of most of the ladders previous generations used to climb into the middle class. Not to mention the middle class itself is shrinking. Also note, in 1970 one parent working a run of the mill full time was typically able to support a family of 4....including buying a home and a car. Now it takes two working parents to replicate that lifestyle!
@rubberroast1598
8 ай бұрын
@@fdm2155 A HS diploma is not a automatic ticket into law school, med school or engineering. But you can easily get into any trades, electrician, carpentry, plumbing, HVAC, etc etc etc. Even manufacturing union job where you have minimum pay scales, benefit, pension contributions etc. Those opportunities are out there. You do good at your job, you can move forward in life, and heck, with experience you can become your own contractor as a tradesperson, maybe even start your own company eventually. Dont feed me this bull that today people cant do that. thats a lousy excuse. Maybe not everyone can get into top tier college and university programs, I myself wished o could have gone into Med, but didnt have the finances to do so. So you take the path you can and make most of it. There are different ways to make it. Trades people are at an all time high right now. whereas some university degrees offered these days mean squat in real world
@libertarian4323
8 ай бұрын
@@fdm2155 Do well enough in HS and you may be able to get a scholarship(s) that pay for most, or all, of your college costs.
@kredit787
9 ай бұрын
Payday loans interest rates are higher due to risk of not being paid back when lending in poor crime areas, thus in a sense responsible borrowers are paying for the irresponsible ones
@justinsweeney643
8 ай бұрын
While this doesn't apply to everyone, it's harder to fix your car if you are renting a cheaper apartment and don't have access to a garage. I used to do all my own repairs when I still lived with my parents and it saved me a lot of money. Like with a lot of things from this video, it has somewhat of compounding effect. If you are constantly dumping money into your car, it will take you longer to save up for a newer, more reliable car.
@justinsweeney643
8 ай бұрын
I know quite a few lower income people that will buy a cheap shitbox, drive it until it breaks and is too expensive to fix, buy another cheap shitbox and drive it until that one breaks, and repeat the same process over and over again because they can never save enough money to buy soemthing better.
@lioneickhof5016
8 ай бұрын
In The Netherlands, and most of west Europe, they compensate this with refunds, on rent, health insurance and tax. The downside is, as a starter, getting a raise means nothing. you get more from your employer, but less from the goverment, netto gain 0. I know that sounds like a third world problem, but it really takes a long time to break free from that boundary, and lots of people chose to work partime, because of it.
@coya8coy175
8 ай бұрын
Washing machines have gone up by $4 per load (now $5-$9) since I last went 5 years ago. I’m so grateful to have an in unit washing machine; even apartments in nicer neighborhoods are lacking in unit washer/dryers.
@Matkatamiba
9 ай бұрын
The other thing about groceries is that poorer folks work longer hours and don't have the time and energy to cook (what would be cheaper)
@amaya_lis
9 ай бұрын
Thank you for making the time to share this to all of us! I enjoyed it and I definitely agree! Some that I know assume that this is a lie but honestly, they can’t tolerate the truth it would rather take a blind eye to “live” comfortably. I had a good paying full time job however, i was let go on the spot and applied for unemployment but was denied due to working more 28 hours for one week. I was extremely confuse since others that worked fully time were able to get unemployment benefits from being let go. I spent all my savings, emergency savings for medical bills and unforeseen events. What’s interesting was when I paid off my credit card, my credit went down by 20 points. I was again confused. What do you think?
@cheesecurd100s
9 ай бұрын
As someone who makes less than poverty wages and has a kid full time by myself i can confirm. Also if you can afford childcare then you can work more, make more money etc. My property taxes have also tripled since i bought my house.
@The__Respecter
9 ай бұрын
If I understood correctly, for the tidbits about flat rate/taxes, in Finland, people are fined in % of their salary. I vaguely remember some news about a really rich guy getting an enormous speeding tickets in the hundred of thousands.
@courtneyshannon2621
9 ай бұрын
Going to a laundromat - thanks for brining up the time cost, that's a big one! I hate it how I have to take two hours out of my weekend to do laundry, instead of being able to do it at home on my work from home days. Another hidden cost associated with that is that laundromats have industrial machines. They beat up your clothes. Every time I had cheap clothing, which you are more likely to buy when you are living paycheck-to-paycheck, I would have to hand wash it because the machines at the laundromat would destroy them after a few washes. One of my first things I did when I bumped up income brackets was to buy better quality clothing - it lasts and I don't have to replace things as much.
@noseboop4354
9 ай бұрын
You could also learn how to fix your own clothes. It was a pretty common skill over a hundred years ago before throw away culture has taken over.
@antilogism
8 ай бұрын
@@noseboop4354 Still a good skill. 50% of my clothes are pre-owned and most of that is my best. My favorite daily jacket cost $4. My warm, dressy, wool overcoat cost $20 but would likely cost over $1000 new and just needed a little stitching and a set of buttons.
@antilogism
8 ай бұрын
I actually like those Speed Queens better.
@chrisbaker2669
9 ай бұрын
Property taxes and DMV fees are taxes that hit the poor much more than the rich.
@tiburon88
9 ай бұрын
I really appreciate this content! ❤ Thank you for sharing. There’s no easy fix to this. I do wish many were educated earlier about finances so they don’t get stuck in a bad cycle as an adult.
@oOBlahBlahOo12345
9 ай бұрын
Thank you for highlighting the economic (and sometimes health) disparities between the different classes and for shedding light on how tough life can be for those living in or near poverty.
@jhernandez7132014
9 ай бұрын
a 15 dollar combo is not cheap. it is one hour of minimum wage. I think fast food being cheaper has become a misconception that is still being peddled around. But that was years ago. Not now.
@user-sx1de6by4c
9 ай бұрын
This could be a fantastic documentary. There is so much confusion around, "Why don't poor people get better jobs", or "Why don't poor people use tax credits to pay for healthcare?" Thanks for shedding some light on this topic Humphrey.
@kolle128
8 ай бұрын
I agree with some points, but the overdraft fees and payday loans are just bad finential management. Even if you have money on your saving account your checking account can go negative if you are not careful, but I just never buy something I don't have money for. If someone cannot do this they should use cash instead.
@dustinduzgames1276
8 ай бұрын
True however sometimes going a little but over like when there's a bulk item next to a singular item having a lil extra would help u save money for the next paycheck I personally experience this when I was buying some disinfecting wipes a pack of four of them I was 46 cents short so I had to get the one which was only a dollar less
@randypullman1155
7 ай бұрын
Great video. That being said my gf works at a bank. The issue isn't overdraft fees it's the fact that every 48 the fee hits again...and again. With in a week its $120.00 and nasty letters get sent out...
@jasonusa
9 ай бұрын
It’s expensive to be dumb too.
@aaronfield7899
Ай бұрын
Healthy foods costing more than unhealthy foods is fundamentally wrong
@CarlosMataShow
9 ай бұрын
Solution: focus intensely on income growth until you reach top 20% of incomes in the country; then shift to focusing on investing wisely. This video points out an income problem that. Growing income is the actionable step here.
@libertarian4323
8 ай бұрын
Another reason for "food deserts" is that a store in an affluent area is not going to have the high levels of shop lifting it would have in poor areas. Who wants to put a business in an area with high crime, where the store might be looted and burned to the ground the next time there is a "mostly peaceful protest" in the area?
@philipstackhouse7813
9 ай бұрын
Awesome video, the regressive tax section was really well done!
@humphrey
9 ай бұрын
Thanks! yeah Zelda example haha
@MatheusSantos-ms9mt
7 ай бұрын
Abolition of indirect taxes, increase of direct taxes, massive increase of dividends taxes, wealth taxes and inheritances! this is the only way of balancing things for the people with the least!
@NoirMorter
9 ай бұрын
Your example works only for Sales Tax. Which is very unfair if you do not take into account buying power. Personally I think nations/cities should only be able to implement one type of tax and that's it.
@bolo34lx
9 ай бұрын
Food really is more expensive for lower-income people. Beef at Costco - As low as $5.99 a pound Beef at "discount" grocery (mostly Hispanic customers)- Lowest was $7.99 a pound Edit: Studies have shown that Costco customers are more affluent because poor families can't afford the membership fee or afford to buy in bulk (cost more at once but cheaper per unit)
@TaxinGigs
9 ай бұрын
Payday Loans are a slippery slope. So hard to get out of that trap.
@ALPHA-ROTH
8 ай бұрын
I'm hearing convenient alot.....that's the trick....you pay for that. Also...if your only making 12k a year...you are not working...which means you cook from scratch.
@user-cc7yv9xl2i
9 ай бұрын
Don't be poor, gotcha.
@randypullman1155
7 ай бұрын
The white elephant in the room of course is one can make tens of millions of dollars and costs can escalate but no matter what zero will always be zero.
@seany2754
8 ай бұрын
One paradox I just saw is the fact that I live in the suburbs of Philly, not wealthy, but not rowhomes, and gas is around $3.25 here. Meanwhile, I drove to the outskirts of the city and gas is $3.69. Very upsetting but this example is pointed towards the owners as well considering they set there prices. And it's disgusting.
@rogergeyer9851
5 ай бұрын
A number being a higher percentage of one's income does NOT make an item "more expensive". It DOES mean low income people need to be MORE frugal.
@unclejaypoker1679
9 ай бұрын
This is a fantastic breakdown..keep up the good work!
@humphrey
9 ай бұрын
Much appreciated!
@thenamelessone7
9 ай бұрын
Overdraft fees in the US are some of the most predatory practices I have ever seen. The only fee you get in a European bank is that from the moment you go negative on your balance they start charging you interest (typically in similar ballpark to CC interest) on the negative amount. Exorbitant flat overdraft fees for automatically enabled overdraft should be penalized under criminal code!!!
@shannonbecker08
9 ай бұрын
Another example is not having the money to buy more expensive quality clothing, shoes, etc., thus having to buy cheap ones more often, which adds up to more money over time.
@DoubleBob
9 ай бұрын
That's simply a lie.
@shannonbecker08
9 ай бұрын
Very helpful comment there, @@DoubleBob
@humphrey
9 ай бұрын
Good point
@DoubleBob
9 ай бұрын
@@shannonbecker08 What's helpful about you repeating some false political talking point? Have you ever bought some cheap tshirt for 3 bucks? Compare it to one that costs 30. The latter won't last 10 times longer.
@shannonbecker08
9 ай бұрын
If that was your problem with my comment you could have explained that calmly from the outset instead of just accusing me of lying. And there's nothing political about what I said. He literally asked for additional examples and I gave one, which happens to be based on personal experience that is corroborated by plenty of other folks.
@rebeltheharem7028
20 күн бұрын
I'm on the high income bracket, because I live at home with my parents, so I don't pay rent. I do pay for most of the utilities and property taxes though. Still much cheaper than rent.
@Chosengirl1
9 ай бұрын
Thank you for talking about this.
@righthandstep5
8 ай бұрын
Interest is the biggest role in poverty. Eliminate interest on poor people,you end 25 percent of poverty.
@scofah
23 күн бұрын
Hi - thank you for your video - would it be possible to republish it without the background music? I had to click off due to the stress of the background noise. Thanks for considering.
@denaetak1147
5 ай бұрын
This is so sad but so true!❤
@tiffanyhwang1738
8 ай бұрын
To sum it up, it sucks to be poor 😢
@penitent2401
8 ай бұрын
More than just food deserts, but the ability to buy in bulk even at the same store make a huge difference. If you can buy large bulk items that last whole week or month the price per unit is far cheaper than buying smaller packets that lasts few days at a time. Especially true for when discounts and deals takes place, the ability to buy large bulk can let you stock up months of supply to take advantage of the discount, maybe enough to last until next big sale and do same again. On other hand if you are only able to buy what you absolutely need to last the next few days or week until the next pay arrive, you got no choice but to buy smaller packet at whatever price is at the time.
@bex8306
9 ай бұрын
Great video, i am currently in high school studying economics and we actually studied about the same concepts and i understood them more from you now Best of luck
@dontbehayton9561
9 ай бұрын
My significant other and I were just discussing this the other day...and one thing I learned from a friend of mine whom drives Taxi, is that people whom can not afford a car (due to low income or maybe a fixed low income Ex: SSI) pay an absorbent price just to go across town to do errands that are needed that month or for a couple weeks....whereas when someone whom can afford to have and drive their own car can go so much further on that 10 to 20 dollars. It feels so predatory and wish we had a better system for this as well.
@fdm2155
8 ай бұрын
Another reason why public dollars need to be invested in things like reliable public transit especially in cities. My city is seeing poor families pushed out of the walkable downtown adjacent neighborhoods and out to those bordering the suburbs. Those areas typically have a lot fewer transit options, fewer trains, etc. And services are spread out. So now a family may have to buy a car. Of course they can only afford an old, likely unreliable, car which leads to dumping money into the car! The city has been 'planning' improved transit link to some of those areas for decades but so far nothing. New hope that money from the Biden infrastructure plan will get some of it done.
@elisezliu
9 ай бұрын
If only the 7/11s here resembled the ones in Asia, food deserts are so real
@humphrey
9 ай бұрын
The ones in asia are so good....
@Aryck143
9 ай бұрын
One thing not mentioned is medical bills. Lower income families might not have access to premium insurance coverage. And if theyre not healthy there's more out of pocket medical visits than a healthier mid-wealthy class individual
@margaretelizabethgoddard5695
8 ай бұрын
We fix this with a better social support system- better education system, better social support if people lose jobs, better healthcare system, better access to nutritious food. This all comes from POLICY change. Those in power need to care about the needs of those who are in lower positions. We need some heart transplants too because no one will change policies that affect the poor until they have a heart to love and care for them. We can’t simply rely on non-profits to care for them.
@MargaritoTrevino
9 ай бұрын
Car insurance is almost twice in lower income areas, and home utilities are more because some people aren't paying or because they have late fees
@jonathanm6724
8 ай бұрын
Your first chart showed one thing that has evolved over recent years. The disappearance of the middle class demographic. The difference in necessity spending between the low and middle income earners is only 4% compared to a 12% difference between middle and high income earners. In a few years there will only be the very wealthy and the very poor. I run a small business and we turn over 7 figures annually and I feel like an average income earner. 20 years ago I would have retired by now. The devaluation of our wages and income in general is insane and yet the super rich have somehow increased their net wealth over the last few years.
@AbbyCatt5
8 ай бұрын
It's a good thing I work at a restaurant otherwise it'd be hard for me to eat. I only make 12,000 a year.
@libertarian4323
8 ай бұрын
I used to work nights in an Italian/Pizza restaurant when I was in college. As a closer, I was supposed to throw out any leftover slices. Screw that- those slices were my breakfast and lunch the next day!
@michaelfarfan6186
9 ай бұрын
Wow I have never heard of "regressive taxes" and it makes so much sense on how it affects lower income people😱😱😱 that's crazy
@jiffyb333
8 ай бұрын
Thank you for addressing this.
@ebells33
9 ай бұрын
Excellent video!! Thanks for all the time you put into these amazing videos!
@humphrey
9 ай бұрын
of course, Erin!
@saeedhossain6099
8 ай бұрын
it's not just how much budget you have left over, the unit cost of consumption, goes down the richer you are. basically you spend less and get more when you're better off.
@solomongrundy9735
8 ай бұрын
Why do "regressive" taxes and fees have a supposed bigger impact on the poor, but the cost of the actual item isn't mentioned? Sure, the costs represent a bigger proportion of poorer people's incomes, but that's just reality. Should everything cost you a certain percentage of your income? Why even have money if thats the case?
@user-194o-sc
3 ай бұрын
I have gotten some wonderful clothing from 2nd hand stores---some High end clothes for am very small amount.
@smartanajones4u
9 ай бұрын
Why should they be banned??? Then these people will have no where to turn to to borrow money given their in the dumps credit score. Are you going to lend them money if these places are banned ? The answer is “hell no!”
@freddylosangeles1378
8 ай бұрын
..Public transportation can be considered: reliable transportation, *legal..
@thejoshman1234
9 ай бұрын
If they put stores near the lower income neighborhoods they just get robbed silly
@saeedhossain6099
8 ай бұрын
4:52 the deck, in America, is definitely stacked against you, it's by design. and that is for people who are banked, it's even worse for check cashing places, which are very much set up by big banks.
@astretcher51
9 ай бұрын
Another banger of a video! MUCH WoW! So true that it is more expensive to be poor. Sad but true :(
@GreenBlueWalkthrough
9 ай бұрын
Great video and to add...Where I learned this was from the Boots theory that if you buy sub par stuff you'll need to replace it more then good or luxury stuff... I think this is more true for electronics today then anything else as if you but a MSRP $1k sony bravia TV it should last you forever(At least the old ones.) compared to a cheap $100 TV that may be dead on arrival.
@rogergeyer9851
5 ай бұрын
No, it's expensive to be STUPID. Piling up debt and interest payments, for example, is on YOU. I was poor and frugal (re teaching from my parents) through college. I was a poor person and lived like a poor person. Not complex. But I didn't pile up stupid debt either. Then after college, I got a good job (focusing on studying and grades in college instead of partying). I STILL lived like a poor person (habits, and I didn't care about showing things off). But I saved and invested and reinvested a BIG part of my income. The rest, over time, is obvious. There is far too much whining, and far too little frugality re the "poverty problem".
@metalrooves3651
9 ай бұрын
outrageous monthly car INSURANCE,IS way higher than for us that have the the same insurer for years..the poor get canceled for non payment and move around to different companies..resulting in high rates..
@es9415
8 ай бұрын
Judging by the map of Southern California you are showing in video, there aren't any Publix in that state.
@user-vv6cb9vo7d
9 ай бұрын
Didn't even watch the video yet and this is FACTS!
@Bubbaxmonster
9 ай бұрын
My 2 questions are who doesn’t live near a Walmart and who doesn’t have washer/dryer hookups? I live in the hood apartments in a small town in nc and pay $950 for a 3bd 2ba
@efiesd8214
9 ай бұрын
Very educational insights
@lynnlablanc
8 ай бұрын
I think that low income people can get a state-issued card attesting their condition and when they buy something at the store them getting a discount paid by lower taxes on the items. I mean, the seller pay less taxes as same amount the discount, so the poor can have access to items at lower price, the seller doesn't lose money because discount is compensated by lower taxation, and the state don't have to finance the operation because gets yes less money but still gets money from taxes. win-win-win XD
@gamrkidd
8 ай бұрын
This is why money sucks - I don’t want money I NEED money 😓
@thebosshouse
9 ай бұрын
Don't forget that many employers and landlords will check your credit, so lower income folks may have a harder time finding better paying jobs or housing in some places. Limits of housing can mean worse school districts and in turn a lower quality education which furthers the cycle.
@JacobJacobs8937
9 ай бұрын
Ok but let's be for real. If you're struggling to make ends meet don't buy a $30,000 car, don't buy the Nintendo game, don't spend money you don't have to avoid fees, select your bank carefully to avoid account fees
@scp025
9 ай бұрын
The problem is that so many poverty-stricken populations are victims of generational financial illiteracy. What sounds like common sense to you and me since we watch these videos isn't even on their radar. If they need a car and the dealership tells them they can get a low monthly payment (with an exorbitant APR that will plunge them further into debt of course), they'll often sign on the dotted line without understanding the implications. I know because I had to learn so much of this myself.
@mattcanterbury
9 ай бұрын
There is always someone who struggles with the ability to understand using simple examples for comparison and cannot apply it to everyday life. He used a video game as simple example of comparing the type of tax. It could be batteries, lawnmower, faucet, etc... Anything that has a tax that is a percentage of the value of the item. Not only does that item cost more percentage wise the lower your income, the tax is also more, relative to your income. I mean tons of people make bad decisions for cars, but the point he was making is that with the exact same car, a lower income person would pay way more in interest than someone at higher income cause they most likely have worse credit score.
@lindsayschutz
5 ай бұрын
I’m so thrilled to know that my purchase of a refurbished iPhone as well as a laptop to do schoolwork is the reason why I’m poor and not because necessities like food and housing have gone up faster than my paychecks. Or maybe we could blame it on my $19.99 a month Netflix subscription?
@YODAddyLIVE
9 ай бұрын
Great video as usual but you missed the part about all those stores closing in lower income areas due to high losses. Folks like to blame corporate greed but there are bigger issues for businesses. It simply costs more to keep a store open in those areas. A ton of things need to be fixed.
@Steve_Edberg
8 ай бұрын
Another factor with being poor and why people become victims of payday lending is decision fatigue. For the poor almost every option is a bad option and the cycles that keep you poor keep repeating and compounding only making things worse and worse until they're spiralling out of control. Maybe you have a job and a car but one day the car breaks down. Now you can't get to work because you don't have a car but you can't fix the car because you can't earn money to pay for the repairs. Now you need groceries and with what little money you have you can't get to a grocery store all the way out in the suburbs without a car. Sure, the bus goes there but are you going to take a week's worth of groceries with you on the bus?? Of course not!! And if you have kids Lord help you!! It's so expensive and often difficult to coordinate day care leaving you more poor than when you started. This lifestyle lends itself to thinking that if I can just get a little money I can get ahead and that's where payday lenders feed on that desperation. People are so emotionally beat down by their financial situation that they're desperate for relief even if it only lasts a few days. They take these loans knowing it is financial suicide because they have nowhere else to turn. It's absolutely heartwrenching to think about their desperation and pain. 😢💔🙏
@fdm2155
8 ай бұрын
That cut line for impoverished is ridiculously low. Obviously if your income is under $25K in the US, you're almost certainly struggling to live OR relying on others to subsidize you ie living with family or getting money from family
@antilogism
8 ай бұрын
McDonald's is for those with more disposable income, not less. Eating out is a rare treat for many today. Sharing the monster washers & driers like at 3:44 is a good way to save and that time is reserved for reading and homework. Washing and folding the roommates laundry is lucrative, I was once told. Never tried a loan shop but check cashing places take a big chunk too. I recall feeling robbed after going to one in Van Nuys so walking to the bank then felt well worth it! I over-drafted once too and that stung enough to force me to straighten out my poor accounting. Most truly poor also don't spend $11,000 for a car even today, or even own one. Most walk or bum rides. Many have no license---just a state ID card so they can cash checks. Not having a car can be a problem when getting some jobs too.
@abellyold4859
8 ай бұрын
That's why the birth lottery is so important. Upbringing, growing-up environment and social capital are huge buffs which poor people's kids lack.
@Henchman_Holding_Wrench
9 ай бұрын
Switzerland has a system that checks a driver's wealth and excess speed to calculate the fine on a speeding ticket. A bill was introduced by the NYC Council to put something similar in place back in April. I'm sure that went nowhere, but at least the idea was brought up. The idea was that a fine would be multiplied by some value determined by your tax records.
@humphrey
9 ай бұрын
That would be interesting, I didnt know they had that.
@Nightykk
9 ай бұрын
@@humphrey Finland does as well. "[...] Instead, the country runs a day-fine system that is calculated on the basis of an offender's disposable income. Generally, it's their daily salary divided by two. The more a driver is over the speed limit, the greater the number of day fines they will receive."
@user-bo9kc4sx3g
9 ай бұрын
In my opinion, that would be a terrible idea. Why would you charge higher income earners more for the same violation than lower income earners?
@BTrain-is8ch
9 ай бұрын
@@user-bo9kc4sx3g Because they only have that higher income because they cheated at life and the system is supposed to punish them for their immoral behavior. Duh.
@xxluapxx
9 ай бұрын
@@user-bo9kc4sx3gbecause rich people were speeding everywhere
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