why do poor people pay more for everything? Is it another way of keeping the poor people poor?

Question

If you don't make enough money ,we get charged more for everything like insurance,loans, anything that we need.

just because i don't make a ton of money don't mean i don't pay my bills. Everytime i turn around i have to pay out more for something...car broke down...kids is sick..or school needs money for a something...child support going up even though i didn't get a raise....I hurt my back again at work and have to take off a few days...never ending.!!

Answer 1

Technically, Dr. Dee is absolutely right, poor people get charged more because the represent a higher risk of insolvency (or at least the financial system thinks so...).

This is apparently not a moral issue, like in most cases when dealing with a capitalist, or free-market system, as this system is top-notch when it comes to hide political or moral matters behind apparently "common sense" solutions (which are common sense only because the well-offs take advantage of it).

There's also a whole ideology behind all this, to make people believe the poor are ignorant masses with no moral values, but again this is very far from reality.
An extreme example would be micro-credit loans, which target the poor, mostly in developping countries, and often have repayment rates far higher than any commercial bank, only because the systems are organized so that repaying the loan becomes a matter of honor and image towards the community.
To the other end, I suppose cases like Enron should make people realize that white-collar delinquency is at least as widespread and harmful as petty criminals.

But trying to correct these things can prove extremely difficult, because, as I said earlier, we're dealing with a system, not individuals, so responsibilities are always shared.

That was a very interesting question, thanks for thinking of it (no, I'm not being brown-nosed ;) )

Answer 2

Poor people pay more for everything because it is expected of them. Shopkeepers in poor areas pay higher insurance, because there is more crime. Insured motorists in poor areas pay higher insurance, because there are so many uninsured motorists. I'm not saying it's fair, but it's true. I don't believe there is a conspiracy to keep poor people poor. No one wants that (no one I know of, anyway.) What I do believe is that there is a conspiracy by wealthy people not to pay taxes, which support basic programs like: the military, which largely protects the interests of the WEALTHY and uses MOST tax revenues (which are paid by the middle class, not the wealthy, as the wealthy have more than enough accountants, lawyers, Senators, Congressmyn, and Presidents to make us all into a little ball of someone who doesn't seem to understand why five people should control the destinies of 5 million people. - - that is confusing to anyone with the least modicum of self-respect.) education, which makes you able to understand that most educated people do not want Americans (nor people in other nations) to suffer poverty.
I have a prediction that may give hope:
The poorest people will continue to refuse to buy insurance.
Insurance costs will rise for the middle class.
The middle class will become destitute.
Insurance will only be available to the VERY wealthy, and will be prohibitively expensive to all except them (and also worthless).
With the wealthy class exposed to widespread banditry by people with no other option, insurance companies will fold.
Then, we will research the idea that maybe 95% of the people in this country (and perhaps 99% of the world) SHOULD have hope for a better future. We might question whether vast accumulations of wealth are a bad idea. We may even consider the possibility of helping those less advantaged than ourselves.
I think if you don't make enough money to buy insurance, buy food, lodging, utilities, and anything but insurance. Insurance is a profit-driven game: They ALWAYS CHARGE MORE THAN THEY PAY. That means you always PAY MORE THAN YOU GET BACK. That means insurance is basically a fraudulent device to get people to pay money for services they won't use.
For God's sake, if you are poor, do NOT borrow money. Unless you can get some help from a kind relative. You can ask money of a church or charitable organization, but DO NOT 'borrow.' The concept of 'lending' is another thing that makes money out of sweat. You are sweating some kind of liability, so you borrow money to cover it. Basically the opposite of insurance.
Wow, poor people really are taking hits everywhere.
Maybe that's the "War on Poverty."

Answer 3

Quite a number of people start out poor. That is the way it is suposed to work. Unless you are disabled in some way or another you shouldn't remain poor unless you don't work enough, or make bad decisions.

The biggest expense poor people get hammered with is interest on borrowed money. Not necessarily because you're being charged a higher interest rate, but it is fair to do that because your income level is an indication of how much risk the lender is taking to make your loan. But because the poor have a tendency to borrow too much for the wrong reasons.

There is no advantage to having poor people. Rich don't get rich by keeping people poor. That make no more sense than to say that the wise become that way at the expense of fools. Or that the hardworking become rich at the expense of the lazy.

Answer 4

I live in a poor area and we pay less for most things the reason being that people cannot pay more. It may be that you are in a high cost area. Poor people in a high cost area get a double whammy. I live in a rural area. I bought a 2700 square foot house for $74,000. It would be worth millions in Northern Virginia or Connecticut. Ignoring property taxes and insurance my monthly payment is only $324 per month. Poor people do pay a higher percentage of their income for the same things, but often pay less. It is only where other costs are present such as crime that the poor see an increase in actuarial rates. I live in a poor area that has very low crime and one of the lowest credit delinquency rate in the nation. Everyone is poor but pretty much everyone pays their bills. So our insurance rates and loan rates are unusually low. Everyone is relatively poor compared to the national averages, but because the local system has integrity, very few are fighting for survival.

It sounds like you should move to another area and get a better education.

Answer 5

I truly believe it is, yes. I know when I was rollin in it so to speak I saved a lot more money than I do now.
Now, if I cannot pay a bill on time, I am either charged a late fee, or bank fees for bouncing a check....like I CHOSE to not pay my bill on time? It was just a casual I can't be bothered? HELLO! If I couldn't afford it for $100 what makes you think I can for $125?!?!?!?!? Grumble grumble grumble
It's not like I am looking for a hand out, but c'mon, I really do need groceries, I PROMISE!
Don't get me started on how there are NOT any aid programs available for the working poor. Hell, even on unemployment I 'earned' too much to get assistance.

Answer 6

That's kinda true. Also prices are higher at stores in the inner city, and they open up all those check cashing places that are expensive too. I think it's because poor people have fewer options, and some take advantage of that. However, there is a flip side- there is welfare, free mental health services, and less taxes.

Answer 7

you get charged more for insurance because you drive bad. You get charged more for loans because you have bad credit. There are 2 kinds of poor. Stupid poor, those that can't do much better than operator or janitor in which case they usually drink too much and don't pay the bills on time. Then there is the 20s poor. That is where you are starting out and figuring out how to join the human race and get ahead. Usually by the time the 20s poor are in their 30s, things are looking much better. Hope you are the latter but if not, slow down and pay your bills.

Answer 8

You are absolutely correct. The battle today is NOT black vs white or Christian vs Jew or any of those other 'conflicts'.
It is necessary for capitalism to have a large core of unemployed or poor people. If everyone was employed & making a decent living, and you went to your boss and asked for a raise, he would have to give it to you. But with a lot of unemployed/poor people, your boss can say "No raise -I can get some poor person to work for less than you".

Answer 9

i'm with u brother y do 10% of the people contol 90% of the wealth? the rich get richer while the poor people suck it. we need a revolution.

Answer 10

Shop around. Don't take the first offer that comes to you.