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The Need for Flexibility in the Earnings Process

We have reached, perhaps the most important moment in the history of the race to the top. Americans need no longer worry about income and credit card debt; after all, what would be truly unimaginable if everything were the same? Why should a mere $50,000 in credit card balances be manageable? The simple answer seems to be ‘If you can’t afford it and don’t mind paying finance charges that are mounting on you, don’t worry. For most of Americans, the situation is quite hopeless.

Americans now have a radically different financial situation than they did a year ago. A generation ago, most Americans belonged to a very different, but equally viable class of society. These days, virtually all Americans are completely absorbed in the pursuit of personal and corporate profit. And since the top earners are those in the highest net worth, the financial institutions and credit card companies have plenty of money in their wallets.

Compounding that situation are the very powerful and well-paid jobs of the financial industry. Those full-time, lower-paid full-time equivalent positions are filled by people who, for whatever reason, don’t have the money to pay for their own salaries. The high-paying part has to do with accounting or budgeting, which is often a passion of the CEO of the credit card company. The part-time credit card jobs may not be necessarily the most lucrative parts of any job, but they certainly pay them.

As we have seen, the highest earners are the ones who typically are most closely tied to the financial institution. In this situation, it means that the financially vulnerable must play the part, although it doesn’t always happen that way. The bottom-line is that the bottom line isn’t quite as significant as the bottom line itself. That decision is made by the financial giants themselves, and comes down to how they use and motivate their working classes and working class and poor in these very same economic and social conditions that have transformed them in two and a half years from creation of the financial credit system.

We can begin to understand the situation in two weeks when we learn just how much more important it is for Americans to be able to pay the bills!

A recent study has shown that the average interest rates on credit cards has also increased by more than fifty percent. Over 90 percent of the cardholders are still paying high rates today. All these new benefits just add up to make the cost of paying high interest credit cards even more important.

So what’s the solution? The good news is that the solution is simple enough to understand.

The bottom line is that Americans are faced with a more serious financial crisis than anyone imagined last January. The nation seems to be in a downward spiral of unimaginable proportions. And the great problems will only increase as the debt levels continue to soar further up the food chain and as we see soaring food prices.

But why should the nation get in the mess this way? There are various reasons that would have to be considered’economic’ but the one factor that will benefit most Americans the most is tax reform.

Perhaps the economy is obviously hurting us now and this is hurting us the most. But this is an issue for another time. If we really are suffering from economic pain, how did the economists get ahead of us by using the word ‘recovery’? Isn’t that the easiest explanation?

They really don’t understand the problem. They create the problem, not the solution. They create the cycle of debt that will continue to spiral out of Americans and into the millions every year. The debt will continue and Americans’s situation will worsen as incomes decline and wages increase.

Americans are already paying an enormous amount in interest, largely on mortgages. It will only get worse as rates go up – some estimates peg the US national debt as at least as $16 trillion.

The answer, unfortunately, is that the solution is simple: Bankruptcy Law.

Because what’s worse than bankruptcy? It’s also much easier to get a credit card than it is to raise your credit limit. And because the credit card companies and banks issue cards to their customers with a 0% or low interest rate for the first six or 15 months you usually have a pretty good shot at getting a lower rate.

I recently saw a customer service representative approaching me on the phone using a debit card without a PIN and running up a $49 security deposit for the credit card in exchange for a 30 day free trip. With a debit card, on the other hand, an interest rate of just 4.99%, this looks and feels great. And let’s be real here, just because we have credit cards makes us a better person. Plus since we are constantly trying new things and shopping around a bit we get a reduction on our electric bill.