Answer by Josh Manson:
Here is the huge misunderstanding that so many people have in regards to poor people.
Poor people don’t save money because they don’t have any money to save after their bills are accounted for.
Poor people can’t move out of the ghetto because it takes a significant amount of money to relocate. They already spent all of their money on other bills. They cannot save any money to move.
They can’t just go and get a different job. To do that would mean taking time to search for a job. Much of their time is already used up somehow.
Poor people spend more money buying the same things that wealthy people buy. I am absolutely serious here.
Let’s say you buy a car, how do you do that? You go to the bank and get a loan preapproved and then you go down to the car lot and choose your car. They try to get you to choose something outside your price range but you hold to what you can afford. You pay for the car with the loan from your bank with a reasonable interest rate.
The poor person goes to the car lot and gets turned down as soon as they check his credit. He just wasted an entire day at a car lot with an aggressive salesman. So next weekend he goes to the place that swears they will finance anyone. He gets conned into buying e same car you bought, but he gets an enormous interest rate and after five years (if he makes it that long without getting it repossessed) he will have paid three times the money you paid.
When you need toilet paper or soap or toothpaste or dishwasher detergent, you might go to Costco and buy it in bulk. The poor person can’t afford to spend $15 on toilet paper, that would cut into the electricity bill this month. So he buys it at Walmart for $3. Never mind the fact that you got 36 rolls and he got 4, he had zero at home and needed it now. He has to go with what he can get.
At the store you might use your debit card, the poor guy has no bank account because he is poor. He has no debit card. Try to go all cash for a couple months to see what it’s like. You will notice that some things just aren’t the same. Your paycheck now costs you money just to get your money. Some places won’t accept cash payments. They will not allow you to use cash to pay bills that if you don’t pay they will charge you late fees on. So you have to pay for a money order and stamps to mail it to them bacause you can’t do a money transfer from your account.
Most poor people have children who they are responsible for. The can’t afford daycare without a job. But with the job they lose their welfare check. They end up getting less money with a job and daycare payments than if they had no job. And never mind the fact that the daycare won’t accept their kids if they haven’t held a job continuously for a while already.
So the guy who just doesn’t want to work yet can who has no children or other bills can probably do something for himself. But wait, maybe he can’t either. He isn’t getting welfare. He gets nothing in the way of government support. He might be getting EBT food but that’s it. He can’t even afford to ride the bus to an area where he can apply for a job. You might ask why he doesn’t work from home. How would he do that without a computer?
There are so many misunderstandings in this questions details that I am completely dumbfounded that it is even asked. The fact that people think that the poor want to be poor makes me speechless. The fact that people think the poor have cash sitting in mayonnaise jars stashed away for whatever is laughable. I know that wealthy and middle class people can grasp the concept of not having the money to cover your bills and also no possible way to get that money. But they never do seem to figure it out.