Originally Posted by bedrock

This goes back to "keeping up with the Joneses" of the 50's and 60's. Only back then, most mom's didn't work. Now it takes two parents to work and they still have a hard time getting ahead. A real culprit is the housing bubbles our govt. is creating, a lot of people are "rich" due to rising home values, but using that wealth to buy things that depreciate.

Govts. are creating irrational conditions so people are responding by acting "irrationally". The trouble is, economics is defined as the study of rational behavior; so conventional economics is out the window. Now we need to study the effects of the policies of the depression, Argentina and Brazil in the past to find out what we may be in for. Talk to a Russian who lived through the 90's for an eye-opening account of what happens when banks fail.

Our policies punish the responsible. Housing prices went thru the roof due to no money down loans and easy credit. Those who saved up for a deposit and wanted to wait to put money down found themselves priced out of the mkt. Therefore, the financially responsible were forced to be irresponsible or lose the sale as prices rose irrationally. Sure you could wait for the bubble to burst, but meantime you are throwing money away on rent. The banks were bailed out by taxpayer funds, then proceeded to sit on the thousands of homes in foreclosure so the frugal home buyer could not get one. They then sold them for a song to Wall Street hedge funds who either rent them out or created a shortage in order to drive up prices--with govt. assistance.

It is essential to teach your kids early. Give them chores to earn money, tech them to save, and be good financial role models.

Since our production economy has been outsourced, everything is based on the finance economy. That only works through usury and for it to work people have to be nearly coerced into spending. In Japan they have had negative interest rates for years and in Switzerland now, you actually are charged to keep money in the bank.

You can't get prosperous doing each other's laundry.

I disagree with the part about hospital greed. They are forced to treat the uninsured and "undocumented" who will never pay for the services. So they cost shift. That's why a bandage costs $50.00. A friend of mine got a dog bite, he went to the ER. The dog wasn't rabid, so they gave him a tetanus shot, a cleaning, and a bandage. $400.00. They would have charged the insurance company $1500.00.

A college education is now another form of racket. 50 years ago a high school education was enough for the average person, then you needed an undergrad degree, now you need a masters. It is such a racket. In and undergrad degree you waste 2 years on stuff you should already know in HS, and then spend 2-3 years on your subject. I really think it is essential for the upcoming generations to learn skills which cannot be outsourced! Nowadays the internet makes actual learning cheaper and easier then ever. Adult ed is sometimes very good value too.