2016-02-02

The Best Protection Against Sandersism Is Education

Upon discovering Bernie Sanders was $65 000 in credit card debts nudged a thought into my pee brain.

No wonder he rails against Wall Street. It's preferable to yell at the clouds rather than look in the mirror at your own financial mess. Though I wonder if Bernie cares he has debts because he's probably created himself a concrete wall convincing himself a magical invisible system of rigged capitalists forced him into it. Either that, or he doesn't plan to pay it back.

Bernie's populist nonsense is, however, resonating. And this is troubling.

Here's my take.

The best way against falling into the arms of such left-wing demagoguery is to educate people, as I've done here on this blog for years offering free and sound advice, on matters of finance.

That's one step in the right direction. Finance is as personal a choice as selecting a doctor. It should never fall into the hands of bureaucrats nor be susceptible to one not being accountable for their decisions.

You take out a loan? Know the details and possible consequences. First among them is credit card companies are charging you to borrow their money. For example, if you borrow $10 it's actually costing you $11.90 (assume the typical 19.99% finance charge)When you borrow you undertake a journey into establishing credit worthiness. The worst thing you can do is have your name ruined.

Alas, people are not the only ones who need to stand up and be accounted for their decisions.

Perhaps legislation compelling credit card companies to stop handing out credit to people (ie students) not capable of sustaining payments. Credit card companies prey on vulnerable and inexperienced consumers knowing full well they entrap them into a cycle of debt. Debt is slavery and they know this. That's a simple loop hole I reckon that can be closed.  

Politicians talk about common sense all the time but they tend to apply it in the wrong places. Personally, to me, financially illiteracy is far worse a problem than climate change. We can easily quantify and identify debt by simply adding things up.

Only when we educate will we head in the right direction. Perhaps then we can be spared once and for all economic illiteracy that oozes out of our television and radio.









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