2013

Poverty in America
By: Lynsie Brown
Dr. KT Magnusson Econ 2010

The fact that poverty is so rampant today in America is one that is sobering and oppressive. It is alarming to consider the idea that although we live in one of the most affluent countries in the world, millions of people are suffering from cold, hunger and lack of proper medical care. It seems to me that there must be a solution, and that the solution is the responsibility of every American citizen. I have personally had times in my life where I have had to rely on government assistance. Those times were humbling, embarrassing, and experiences that I never want to relive again; but I am very grateful for the help that I received. When I was a child, we did not have a lot, but we always had enough. My parents both worked full time, and we never went cold or hungry. However, I remember when the evening came, to do the bills, and it was the night we all dreaded. You could cut the tension in the air with a knife, and my parents were visibly stressed and irritated. We, as kids, knew full well that it was best to stay out of our parents way, and that one day we would grow up and have to do the bills as well. I am amazed at how this experience as a child shaped my adult life for many years. There are many problems with this picture, but the one I would like to focus on, is the fact that my parents were honest, tax-paying citizens who worked hard, and still had an incredibly hard time making ends meet. We lived in a very modest home, drove older model, basic vehicles, and rarely did anything such as going out to dinner or to the movies. As time went on, my parents situation improved, and we seemed to have more, but I believe that the example of my parents is the scene in most homes across the country each and every month. There is clearly a severe lack of education in our country. I feel that I have been fairly well educated in economics, have been an owner of a thriving business for 20 years, and there were many terms and concepts in this course that were completely foreign to me. I believe that if we, as a society, would become more educated about how economics work, the options that are available to us all, and how to get ourselves out of the slumps that we often find ourselves in, the poverty level would drop significantly. The problem with this idea, however, manifests when certain aspects of the system are designed to hold people back and exploit their

disadvantages. For example; the FICO score and credit report is designed to help creditors make educated decisions as to whether they should lend people money or not. Before Obama passed the law that prohibited credit card companies from charging exorbitant fees and penalties, many of these companies prayed on consumers weaknesses, and kicked them when they were down, so to speak. If someone was even one day late on a payment, credit card companies could immediately hike the payment and interest rate so high, that consumers who were already on the verge of bankruptcy, had no hope to ever be able to afford the new payments, much less pay off the debt in any realistic fashion or amount of time. This scenario is exacerbated when consumers pay the price for this one oversight, by having to pay much higher interest rates on anything they may want to buy in the future (if they are extended any credit at all), for many years to come. This then puts them at higher risk of default, which easily keeps them living at the very edge of their means, if not pushes them into bankruptcy or poverty. It is a vicious cycle. Having said this, I do believe that many people fall to the mentality that they are victims of society and have no hope. I am a firm believer that we, as a people have power to take control back over our lives, and much of that power lies in positive thinking. I believe that we also need to become active participants in our communities. We have a responsibility to be educated about issues in our society, knowledge about our local and national leaders, and have the courage to speak out when there are issues that are not for the best interest of all members of society. We have the power to vote in officials that will represent us in Washington, but unless we are truly educated about who is running and what they desire to do with their elected position, we cannot have our voices be heard and therefore forfeit our power. I truly believe that we the people need to take the power back, and send those people that have our best desires at heart to represent us in the times that it really counts. That is the first step to ending poverty in America.