Economic Mobilty : Intelligent Decisions & Hard Work

One of the main reason the average citizen has an inert distrust and fear of banks is from how they are demonized by progressive socialist Democrats from Washington. The same is true about manufacturing industry and other large industries that are successful. Even though  the progressives milk them for campaign funds and threaten them if with new regulations if they don't pony up with the funds, they still wail on about how they are screwing the public.

It's called 'class warfare' and it is used by the liberal left Democrats like Chris Dodd, Barney Frank and Barack Obama, to separate the people from believing these institution are not out to destroy them. Little wonder then why the average citizen has a fear of banks and our economic institutions, and why they have little reason to take an interest to understand economics in general. The citizen has been brain washed into believing that the federal government will take care of their economic problems by attacking the evil financial bad guys. All that's required is to vote like they are told, more government for more good times.

The fact that even when the citizen votes as they are told, they still are plagued with money problems and their personal financial situation has not changed, no jobs and no hope of getting one any time soon.

Worse, of course, no matter how bad the financial situation gets, no matter how far they fall into financial ruin and poverty, they will always believe big brother will be there to help, but, of course, he never shows up. But then, Big brother never intended to show up, it just how the game is played, there has to be a fall guy, and why not the guy that finds personal decisions too difficult to make when all he is interested in is slamming beers, texting, IPhones and IPads. Who knew? The progressive socialists know.

So don't ever wonder how we have arrived at the cliffs edge under full power, maybe it's the guy in the mirror that fell asleep at the wheel. Maybe it's the guy that voted last November for more gas to the engine of destruction voting for more big brothers. Why would anyone apply more acceleration to their own demise?

Improving Economic Mobility through Increased Savings
January 17, 2013
Source: Diane Calmus, "Improving Economic Mobility through Increased Savings," Heritage Foundation, December 21, 2012.

Since the recession began, Americans' rate of savings has been on the rise. Yet too many still do not have savings to buffer them against an emergency. This is especially true for low-income Americans, far too many of whom are just a medical bill or broken-down car away from financial ruin.

Fortunately, our better understanding of the role of savings in mobility, together with interesting experiments and programs to foster savings, could enable us to make a significant difference in the accumulation of financial capital in poorer households, says Diane R. Calmus, a research assistant in the Center for Policy Innovation at the Heritage Foundation.

Several factors help to explain why some individuals and households move up the economic ladder and some do not. We can think of them as three forms of "capital."

• Human capital means skills and knowledge that comes from education and such things as good health that improve one's productivity. It also means traits and attitudes, such as perseverance, grit and farsightedness, which could be called character.
• Social capital refers to institutions like a stable family and a closely knit community, which nurture and reinforce the personal characteristics needed for upward mobility.
• Financial capital refers to savings, wealth and investments.

Financial capital is critical for economic mobility in several ways. As tough economic times have struck American families, the importance of emergency savings has become more obvious. Savings help to cushion a family against the potentially catastrophic impact of large unexpected expenses.
Savings, however, is more than simply money to pay unexpected bills. Savings -- and, even more important, the culture of saving -- are critical to long-term and consistent movement up the economic ladder.

Studies have found a strong connection between family savings and increased future earnings. This connection is found both within the individual's lifetime and for the saver's child.
But a propensity to save is also associated with character traits like grit, determination, perseverance and the ability to delay gratification. The problem for many individuals is that weaknesses in these traits make regular saving a major challenge. This challenge is made worse by the societal pressures of American consumerism.

Other barriers to savings are less abstract and cultural. A lack of familiarity with the mainstream financial system is more likely to deter low-income individuals than it is to discourage their middle-class counterparts. Inconvenient bank locations and hours, high and unexpected bank fees, a negative banking experience, a lack of financial education, and distrust of banks can also lead many individuals to avoid banks and thus also miss out on bank services that can foster savings.
Calmus explores in depth some programs developed to help address these issues and attitudes.