The Poverty Business

The “Poverty Business” article read in Business Communications class was very informative. The class discussion that followed was beneficial to my comprehension as well. A main topic that stood out to me was financial institutions thriving off the limited resources of the poor. No legal binding contract between parties should be signed, without the consent and complete understanding of the contract agreements by both parties. I feel the main factor that plays into financial ruin, is the lack of financial knowledge. Dealing with things such as Sub Prime Mortgage Loans and Pay Day loans, the proper knowledge of how things work is crucial to your success. The exploitation of this lack of knowledge by financial institutions is not only detrimental to the success of the financially insecure, but creates a unilateral chance of a beneficial outcome. This process of “Trap and Fee” is not only what boost the countries poverty rate, but it exacerbates the opportunity divide, putting people that are in bad standing with their finances for an array of reasons on a negative path to financial disaster. Financial displacement, a trust in the financial institutions intentions, and lack of information serve as the necessary tools to be misled into a harmful contract. This systematic dismantling of the financial lower class will continue until something is done about it. I personally don’t think there is one source that is responsible for the alleviation of the current financial crisis. In true democratic nature a collaborative effort must be put forth in order to achieve a financial revolution. A systematic program must be set in motion where the government, corporations, and individuals work together to close the “financial literacy divide”. Financial knowledge on how to access ones financial standing should be made accessible to the public. Topics like budgeting, creating healthy spending habits, and saving, should be illustrated in terms easily understandable to the people. This will equip the public with the necessary knowledge needed to make beneficial  and informed financial decisions.