PyramidHead
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Elizabeth Warren: Americans don't need cliché financial advice. They just need to be paid more - CNN
She responded: Elizabeth Warren on Twitter: ".@Chase: why aren’t customers saving money? Taxpayers: we lost our jobs/homes/savings but gave you a $25b bailout Workers: employers don’t pay living wages Economists: rising costs + stagnant wages = 0 savings Chase: guess we’ll never know Everyone: seriously? #MoneyMotivation… https://t.co/wyRlXaFev8"Chase Bank fired off a tweet last week staging a hypothetical conversation between one of its customers and her bank account. The customer asks why her account balance is low, and the bank tells her not to go out for food or coffee when she can make it at home instead, or to spend money on a cab when she can just walk. The customer pretends not to listen. "I guess we'll never know," she says, brushing off her low balance and the bank's "advice" on how to manage her money.
Great. So great. Good that she actually did the research instead of outsourcing all her research and analysis to a political talk show -- she has a MUCH better work ethic than the one whom she hopes to replace.Here's the thing — I grew up on the ragged edge of the middle class in a family with a tight budget and no room for error. My parents worked hard and did the best they could, but when I was 12 years old, my Daddy had a heart attack. Everyone thought he was going to die. He came back home, but he couldn't work. There was no net to catch my family. We lost our station wagon and would have lost our house if my mother hadn't saved our family by going out and getting her very first job outside the home — a minimum wage job answering phones at Sears.
It wasn't until later in life that I realized how lucky my family was. After I became a law professor, I started studying what drives families into bankruptcy. I poured through records in courthouse after courthouse, and found that most of the families who ended up in front of a bankruptcy judge were just like mine. They worked hard and did everything right, scraping by until an unexpected medical bill or a divorce pushed them over the edge.
In the years since I started immersing myself in this topic, things have only gotten worse for working families. For 50 years, the price of housing, education and child care has skyrocketed while wages for most workers have barely budged. The economy has grown and workers' productivity has increased, but their share of corporate profits has fallen. The gap between incomes and costs is so gaping that 40% of Americans can't come up with $400 in an emergency. Hard-working families have become adept at stretching their paychecks to the breaking point, skimping on necessities just to make ends meet.
Warren is good. But she's also uncritically pro-Israel and stops short of actual structural change for the economy, preferring reforms to the existing system over anything that would get at the root cause of problems like the one she's describing.