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Tuesday, July 29, 2014

Govt. Profit off Personal Debt & Admiring the Immigrant Worker

We read an interesting statistic today on personal debt..

According to a study released Tuesday by the Urban Institute, more than 35% of Americans have debts and unpaid bills that have been reported to collection agencies..

Now here's a more interesting statistic as to why the government never Ever seems to put any policies or laws into place which protect debtors or alleviate their suffering in any way..

According to a separate study published this year by the Fed's Philadelphia bank branch, the collections industry employs 140,000 workers who recover $50 billion each year.
So what does this mean in dollars & cents terms?

Let's use very basic math..

140,000 people with minimal education who are not collecting unemployment multiplied by an average salary of $22,000 on average equals...

 $3.08 billion in tax revenue.

Since $22k annually falls within the 15% tax bracket, this means that annually the Federal government can collect $462 million off those 140,000 workers
In addition that $50 billion recovered is taxable as well..

So what possible incentive would the government have to help those who can't pay their bills and are at risk of repossession, eviction and/or foreclosure??

Plus there's so much money to be made off a bankruptcy by attorneys, judges, sheriffs who serve notices, the repo business, etc..

As we said before, the System is designed to benefit every step of one's upward financial mobility and to profit from every step downward to the economic bottom..
Everything is geared toward credit-- borrowing, leasing, payment plans and short/long term financing because businesses know most people do not have the means to buy so much as a refrigerator or stove outright much less an automobile or car..

And that's what keeps the economic plates spinning..

Every individual is figured to incur continual non-stop debt, and even if one is able to get fully free of the tentacles and pay the auto loans and student loans, and first and second mortgage and have enough to enjoy life while paying the full balance on a credit card...

Well, there's always that next generation to suck blood from
And since so many parents think having their kids trudge and sludge through their 20s and 30s in financial struggle is good for character building, it just plays into the System's hands

There is a specific type of individual we at A&G admire most because he/she is so rare nowadays..

Its the person, usually a legal immigrant who works non-stop..  two to three jobs... 7 days a week, 365 days a year practically..

Just keeps hustling..  Keeps grinding..
And its not to buy a mansion or a new Porsche or big screen TVs and clothes with polo-playing horseys gaudily adorned..

Its to save.. Furiously save, save, save..

And when their children are of age and ready to attend college, he or she pays 100% of it and never even thinks of having their most-precious incur student loan debt..

The pride and satisfaction of knowing their children have degrees (in many instances the first generation to do so) makes all the hard toil worthwhile..

Its all about a selfless devotion to the next generation..
That was quite common in the 19th century, especially among all the Southern and Eastern Europeans who immigrated to the US in the 1880s-early 1900's..

Now the focus is.. "I work hard, its my money and I'm having fun"

We read the other day that actor Philip Seymour Hoffman possessed a net worth of $35 million at the time of his death..

And he left it to his girlfriend rather than his kids..
He didn't want them to have it "easy"..

And here we thought he was Pathetic solely because the man was a black tar heroin addict..

Some people believe we're all meant to work n' work n' work till we're old and grey then die

And no matter how much money is saved and how impossible it is to take any of it to an afterlife, the next generation must also work n' work n' work n' work till they drop over and die too..
And others.. so few in this day n' age will work n' work n' work n' work so their kids don't have to be automatically behind the economic 8-ball before turning 21, and be as generous as possible to those they love and who equally love them to give them every advantage possible

As this economy gets worse n' worse, it is those young people who will have the greatest chance of a good life because you can not ever get ahead when you have perpetual debt and never-ending dependence on a paycheck keeping you from progressing forward

So we salute and deeply respect the unselfishness of the immigrant; the first-generation American