Wednesday, 16 February 2011

Debt is Slavery

I've planned to write about Higher Education but while researching it I realised that a big part of this illusion is debt. In fact if one would to really look into causes instead of symptoms of every day illusions then debt would be right up there. Since we live in capitalist world which centers around money, and since all money is debt, then you can see how it's really debt that keep the world turning. (I will go into more detail on this particular point another time.)


Matt Barrett, CEO of Barclays once let it slip that he didn't borrow on credit cards as it was too expensive; a remark that cost him his job. However credit cards aside, there are so many ways to get into debt that one can easily see why most of us are. Debt that once had social stigma attached to it or down right illegal is now the norm, constantly reinforced by the media and our education (or lack there of).

The average person will start their adult life with student and/or credit card loans. Then there are personal loans, store credit and finally mortgage. To top it all off, we are all servicing the government debt through our taxes. It's very difficult to avoid such an assault of debt and those that get caught are forced keep their heads down and work to keep paying off their debt only to get suckered into getting more into debt with a neatly pre-approved credit card in your mail.

The truth is that nothing prepares us for this. Money being so important in our lives is somehow omitted in school curriculum and the average parent doesn't know better as statistically they'll be up their ears in debt also. This complete ignorance, together with peer pressure to keep up with the media portrayal of the Joneses, is what has been causing the rich-poor gap to grow bigger in the last 40 years that easy credit has been available.

“Have you ever asked yourself how people who immigrate to the United States can come here, get a low-paying job, and open their own business five years later? How can they do that, making around minimum wage, when you can’t, making more than minimum wage? They save. They save 50 percent or more of their salary. They don’t go into debt, they work hard and make other sacrifices, so they can buy their own business and control their financial destinies.”

Quote taken from Debt is Slavery: and 9 Other Things I Wish My Dad Had Taught Me About Money. An easy quick read that will give more relevant life lessons then your school ever did.

12 comments:

  1. I don't own any credit cards, and I refuse to owe anybody anything. If I can't afford something, I simply learn to do without. I've been fortunate enough to keep this up though school, and to get a car....I might have to plot to kill my parents or something to be able to avoid house payments though.

    http://robertfunf.blogspot.com/

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  2. Very related with a topic I´ve posted about the pursue of hapiness: Our minds get bored very quickly after we reach a goal. What keeps it at easy is the process of reaching it.

    In such a dinamic capitalism, where you are drown in the "buy new (home, car, phone etc)" moto, you would focus on the (cars, houses, phones) and not on the process of saving money to do it. So, we´d go by the easier way... credit cards, loans, etc.

    And after we get it, we could be happy and satisfied for some weeks or months, then think "wtf did i just got this?" feeling, then moving the attention to another goal/purchase.

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  3. The problem begins with our mindset that we learn from birth. That is, we think we WILL BE happy when we get something or achieve something. As soon as we get it we suddenly want something else that WILL make us happy. This kind of mentality is exactly the same as gambling, that is the "almost" winning, and not the winning itself.

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  4. ya were are all in debt to the owners of the big banks and the Fed.Even the government. Think about it, the government has to pay back the Fed. what kinda of system is this!

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  5. Speak for yourself Linksss. i make a point to have 0 debt. Im just a major mack!

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  6. i have loans i need to pay off once i am out of college, but thats the only debt i have. i dont mind not living an interesting or exciting life for a while, but if i can get myself out of my little hole, it will be worth it.

    http://randomramblingggg.blogspot.com/

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  7. I also have no cards and would never buy a new car with a loan. Only a car I can pay cash for.

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  8. I actually don't have any creditcards but I do have a student loan. It's almost obligated if you want to live on your own and study at the same time. I hate being in debt though..

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  9. everything i buy, i buy with cash. i dont want to be dependant on someone else... it's one problem less in my life if i never be in dept

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  10. Debt, blah. My parents have verbally beaten it into me to NEVER purchase what I can't pay off at the instant that I buy it. That coupled with the fact that I prefer a monastic lifestyle will hopefully not get me too much debt.

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