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  1. #1
    Emperor/Dictator kyuuei's Avatar
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    Default Poverty statistics in America

    It was an interesting map. It's... different, seeing so many in the same area we are on the map.

    http://news.yahoo.com/s//huffpost/20..._201010190954/

    Any thoughts? Do you think this trend is going to continue to rise due to the economy, or is it something else?

    Mayhap more people are discovering that they can survive, most of the time on the lower budgets and price ranges they have?

    More and more, I see people ever so comfortable in America living off State-assistance. I wonder if soon we will move toward broader approaches to assistance that cover more people so that they can continue..

    I'm rambling. I just thought it was a cool map.
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  2. #2
    ^He pronks, too! Magic Poriferan's Avatar
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    The current problems with the economy are making this worse, but even the economy turns around to a state akin to pre-recession levels, many of these problems will only slow down in their development.

    The income inequality problem, for example, has been growing since the early seventies. Lower taxes on the rich, the effects of globalization, conversion to being a more service driven economy, failure to keep education up with technological advancement, and diminution of pro-labor powers (and the ensuing effects) are all responsible for this. As such, the great recession is practically negligible in regards to that problem. I was actually hoping it might be the turning point for the US to start adopting policies that fight it better, but with this Tea Party thing, it looks like America is more inclined to elect politicians who will inflame all of the problems covered in that article.

    I guess what I'm saying is that while this recession is a very real problem, it's just a particularly big bump in long-term problems in the USA, and a much more fundamental reform than merely trying to treat this crisis is necessary to change anything.
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  3. #3
    Artisan Conquerer Halla74's Avatar
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    Everyone I know has reduced their monthly fixed costs to bare minimum levels.
    Such an exercise would have been fiscally responsible 2 yeaars ago, but now is a necessity for many.
    The good news is that there are options not available before due to the unique nature of this (horrid and preventable) crisis, such as loan modification programs and other means of debt reduction.
    The key is, what debts do people have that are SECURED vs. UNSECURED.
    Secured debts (mortgages) are obviously a higher priority as default results in loss of one's home.
    Unsecured debt is less of an issue so long as the individual/family in question has sufficient positive cash flow and some amount of reserve funds.

    I have always been industrious, and take any chance I can get to work side jobs to make cash for Halla's funny-munney-fund.
    There are times when my personal reserve gets used for family expenses, and I am fine with that, as keeping the ranch in good standing is my prime directive.
    But, if I didn't have a reserve of my own, I would not have that option.

    Pay cash whenever you can.
    Minimize non-essential expenses.
    Sell stuff you don't need to create cash.
    Pick up a second job or random side jobs as they come up.
    With these options alone most can begin to ascend out of a hole of debt if they are but hard working and persistent.

    It's all about being flexible right now, and resourceful, and being smart enough to realize opportunity knocks once.



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  4. #4
    Emperor/Dictator kyuuei's Avatar
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    ^ As for our family, we're trying hard to knock out the debt we've had mounding up from medical costs and expenses so that we can do what we've talked about doing for a while. I have a 2 year plan for us, and I hope it'll go as well as I'm dreaming it up to. But it seems as though side jobs have been the ideal that have kept us afloat lately.
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  5. #5
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    Quote Originally Posted by Magic Poriferan View Post
    The income inequality problem, for example, has been growing since the early seventies. Lower taxes on the rich, the effects of globalization, conversion to being a more service driven economy, failure to keep education up with technological advancement, and diminution of pro-labor powers (and the ensuing effects) are all responsible for this.
    In my international trade courses in college, we reviewed the literature surrounding the rise in income inequality since the 70s, and the general consensus was that technological progress accounted for 80%-90% of the increased income inequality over that time, while 10%-20% was caused by trade.

    I did not go deep enough into the various papers to form my own opinion on the matter, but I'm pretty sure I've even seen Paul Krugman say something very close to that.

    The papers were all by well-respected mainstream economists like David Dollar, Ken Rogoff, and others.

    Just fyi.

  6. #6
    ^He pronks, too! Magic Poriferan's Avatar
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    Quote Originally Posted by Zarathustra View Post
    In my international trade courses in college, we reviewed the literature surrounding the rise in income inequality since the 70s, and the general consensus was that technological progress accounted for 80%-90% of the increased income inequality over that time, while 10%-20% was caused by trade.

    I did not go deep enough into the various papers to form my own opinion on the matter, but I'm pretty sure I've even seen Paul Krugman say something very close to that.

    The papers were all by well-respected mainstream economists like David Dollar, Ken Rogoff, and others.

    Just fyi.
    Something I have wondered about that is what the reason is behind the rather wide variation in inequality increases between nations has been over the past 4 or so decades. That is to say, countries with seemingly equal amount of technological development have certainly not had equal inequality increases along with it.

    Like-wise, for about 40 years, from the 1930s to the 1970s, the USA experienced a decrease in inequality, even though it certainly was not experiencing a technological decline.

    What causes this?

    And I do find it hard to believe that not even 1% of it was caused by wealth condensation.

    EDIT: I realized that I definitely must clarify that I know wealth condensation and the effects of technological advance are not somehow discrete things, and one may be related to the happening of another, to some extent. I suppose to be clearer, I was referring the the degree of wealth condensation that would have happened regardless of the technological advances.
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