Do you have a student loan, job loan, car loan, or a new Mortgage? In other words, are you a millennial? Happy!! You are the New Slaves of the United States. Please line up to get your SSN brand.
History can explain the enslavement of American supporters for more than 400 years. Instilling the ideology of “black vs white” which in 2015 we still cannot shake. However the colour of debate here is GREEN. Today’s society doesn’t use whips and chains to enslave people. The “wealth gap” involves systems that will ensure those who don’t inherit wealth cannot acquire it. One such system is Borrow.
First we must understand the difference between earning potential and having potential, and why it matters. The difference is income inequality versus wealth inequality.
When the top 20 percent of earners earn more than 50 percent of total income in any given year, or when the richest 10 percent of American households earn about 28 percent of overall income, this is income inequality. Your earning potential.
Conversely, when the richest 10 percent of US households already control 76 percent of all wealth in America, that’s wealth inequality. You have potential.
Wealth is the value of what you own minus debts. Wealth inequality is the difference between “earning” and “having.” This type of inequality has been highlighted in a new report by the Organization for Economic Cooperation and Development: wealth inequality.
Main Source of Wealth
• Property/Land (Home or Home Equity, Business)
• Other Property (Cars, Ships, artwork, Jewelry)
• Assets (stocks, bonds, 401(k) and obviously cold hard cash)
New York University economist Edward Wolff quantifies and unravels the nation’s wealth. The top 1 percent have about 35 wealth in the US and the bottom 40 percent haven’t any wealth at all. They may have Jobs, homes, and titles but no wealth. The bottom 40 percent in fact have negative net worth. Meaning they owe extra money than they’ve, and they possibly owe that money to someone in the top 5 or 10 percent.
Where does slavery come in? Like being born in captivity, millennials are born to work for the very rich. Any mall, fast food restaurant, retail store, etc. will schedule your classes, basketball practice, or dance classes, so long as you’re a part-time employee and do not need benefits.
Because millennials aspire to earn more than the average cashier at your local drug store, they are going to college. College education can be a double-edged sword, as it sets students up for earning and in debt. The average undergraduate student owes about $30,000 to $70,000 upon graduation.
If a millennial comes out of college $70,000 in debt, it becomes even harder to own land, businesses, cars, and other assets, because there are already huge bills. The average college student starts out earning $40,000, just to pay off most of the interest and principal on their student loans. It’s like revenue sharing, beneficial in that you can earn enough to eat and pay back but the chances of ownership are slim.
The system borrowing more than you are worth becomes cyclical. Millennials start with student loans, and add in car loans, and aspire to one day owe $100,000 in home loans. This is slavery, with no alternative.
Big problem right? You owe a few dollars, you pay it off over 50 years, and die owning a house, 2 cars, a wife, 2 kids, a dog, and making 80,000 a year. Not bad, aside from the rest of your life, your spouse, and your kids, are susceptible to every recession, natural disaster, disease, politician, energy crisis, and the list goes on. Freedom equals ownership.
Realistically, we must borrow. So here are some tips on responsible lending, for those just starting out. This will provide you with the power to owe less and have more.
• Establish a line of credit in college or even highschool. Always make payments on time. (Ask your parents for help until you can afford it yourself)
• Your credit score is determined by your credit history. No history often means high interest payments without a loan.
• Don’t borrow more than you earn or will earn.
• Look for each possible scholarship. Public colleges are cheaper than private colleges, and do not discount in-state student allowances. And if your grades aren’t the best, go to a community college to major in a field you enjoy and are good at. Coupled with an associate degree and a good GPA, you will find a better deal.
• Save to lose 25 to 30 percent
• These student loans, car loans, or home loans will keep the interest payments low and the terms short.
• Use a cosigner or get a loan with a trusted family member or friend for the home or business.
• Lower risk of default on multi-person loans, and therefore lower interest rates.
Credit
http://www.washingtonpost.com/news/wonkblog/wp/2015/05/21/the-top-10-of-americans-own-76-of-the-stuff-and-its-dragging-our- economy down/
http://www.usnews.com/news/articles/2014/11/13/average-student-loan-debt-hits-30-000
