While the economy makes it difficult for anyone to survive it’s even harder for the poor. Jobs are few and far in between, prices are increasing and dreams are diminishing. Although most would love to blame their misfortunes on the decisions of the Government, they can’t. Why? Because of socioeconomic and personal choices.
Socioeconomic is the study of the interrelation between economics and social behavior.
Due to the choices made the poor remain poor because they choose to live a rich lifestyle while the rich get richer because of being frugal. Too often you either see or hear a conversation of someone with limited funds planning to spend more money than they possess. At times, they plan for large purchases instead of budgeting to hold onto monies for an emergency.
Think of the many conversations you’ve probably heard someone mention of plans once they receive their large tax return. What are they contemplating?
The opposite is true for the rich. Whenever the rich come across a large sum of money they find ways to invest while living off the interest to supplement towards their habits. This addresses two concerns: Make money from the principal while investing and continuing their lifestyle.
The research, conducted by senior economist Katharine Bradbury, shows that economic mobility has also slowed in recent decades. Those in the poorest fifth of the income pie were more likely to stay there between 1996 and 2006 than they were in the previous two 10-year periods.
“Most of the long-term poor are stuck at the bottom, most of the long-term rich have a strong grip on the top, and each of these two groups is somewhat more entrenched than the corresponding groups 20 years earlier,” she wrote.
The spread between the rich and poor has also widened, as income inequality increases. The difference in median income between the highest and lowest quintiles was $80,500 during the 1996-2006 period. That’s nearly $30,000 more than it was two decades earlier.
It’s time to change the mentality, behavior and outlook of the economy.
“Love yourself enough to support yourself.” BL Shabazz
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