You have to be rich to be poor.

yesboii

Ishin
Joined
Dec 1, 2008
Messages
274
Location
Los Angeles
That's what some people who have never lived below the poverty line don't understand.

Poor? Pay Up.

Put it another way: The poorer you are, the more things cost. More in money, time, hassle, exhaustion, menace. This is a fact of life that reality television and magazines don't often explain.

So we'll explain it here. Consider this a primer on the economics of poverty.

"The poor pay more for a gallon of milk; they pay more on a capital basis for inferior housing," says Rep. Earl Blumenauer (D-Ore.). "The poor and 100 million who are struggling for the middle class actually end up paying more for transportation, for housing, for health care, for mortgages. They get steered to subprime lending. . . . The poor pay more for things middle-class America takes for granted."

Poverty 101: We'll start with the basics.

Like food: You don't have a car to get to a supermarket, much less to Costco or Trader Joe's, where the middle class goes to save money. You don't have three hours to take the bus. So you buy groceries at the corner store, where a gallon of milk costs an extra dollar.

A loaf of bread there costs you $2.99 for white. For wheat, it's $3.79. The clerk behind the counter tells you the gallon of leaking milk in the bottom of the back cooler is $4.99. She holds up four fingers to clarify. The milk is beneath the shelf that holds beef bologna for $3.79. A pound of butter sells for $4.49. In the back of the store are fruits and vegetables. The green peppers are shriveled, the bananas are more brown than yellow, the oranges are picked over.
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(At a Safeway on Bradley Boulevard in Bethesda, the wheat bread costs $1.19, and white bread is on sale for $1. A gallon of milk costs $3.49 -- $2.99 if you buy two gallons. A pound of butter is $2.49. Beef bologna is on sale, two packages for $5.)

Prices in urban corner stores are almost always higher, economists say. And sometimes, prices in supermarkets in poorer neighborhoods are higher. Many of these stores charge more because the cost of doing business in some neighborhoods is higher. "First, they are probably paying more on goods because they don't get the low wholesale price that bigger stores get," says Bradley R. Schiller, a professor emeritus at American University and the author of "The Economics of Poverty and Discrimination."

"The real estate is higher. The fact that volume is low means fewer sales per worker. They make fewer dollars of revenue per square foot of space. They don't end up making more money. Every corner grocery store wishes they had profits their customers think they have."

According to the Census Bureau, more than 37 million people in the country live below the poverty line. The poor know these facts of life. These facts become their lives.

Read the rest of the article: http://www.washingtonpost.com/wp-dyn/content/article/2009/05/17/AR2009051702053.html?g=0

I thought this article was rather interesting. Coming from an upper middle class, I never realized how true this article was 'till I read it. ;)
 
Like food: You don't have a car to get to a supermarket, much less to Costco or Trader Joe's, where the middle class goes to save money. You don't have three hours to take the bus. So you buy groceries at the corner store, where a gallon of milk costs an extra dollar.

A loaf of bread there costs you $2.99 for white. For wheat, it's $3.79. The clerk behind the counter tells you the gallon of leaking milk in the bottom of the back cooler is $4.99. She holds up four fingers to clarify. The milk is beneath the shelf that holds beef bologna for $3.79. A pound of butter sells for $4.49. In the back of the store are fruits and vegetables. The green peppers are shriveled, the bananas are more brown than yellow, the oranges are picked over.
ad_icon

(At a Safeway on Bradley Boulevard in Bethesda, the wheat bread costs $1.19, and white bread is on sale for $1. A gallon of milk costs $3.49 -- $2.99 if you buy two gallons. A pound of butter is $2.49. Beef bologna is on sale, two packages for $5.)

Prices in urban corner stores are almost always higher, economists say. And sometimes, prices in supermarkets in poorer neighborhoods are higher. Many of these stores charge more because the cost of doing business in some neighborhoods is higher. "First, they are probably paying more on goods because they don't get the low wholesale price that bigger stores get," says Bradley R. Schiller, a professor emeritus at American University and the author of "The Economics of Poverty and Discrimination."

Umm ... you'd have to try pretty hard to make those plastic milk jogs leak. Also, the biggest cost of doing business in crappy neighborhoods by far is inventory shrinkage. The author omitted that for some rather obvious reasons.
 
Yet through farm subsidies, you're all paying less than market rates! Butter and milk is noticeably more expensive here. I pay the quoted corner store rates for milk and butter at Walmart.

And yeah, I did the conversions between the dollars.
 
I can somewhat understand. I lived below the poverty line for many years, but it was quite voluntary on my part, and so it wasn't all that hard.
 
I pay $6.50 USD per gallon/4L of milk at Walmart, and go through 1L per day.

People paying less than me don't get to complain about milk prices.

edit: The article makes some good points, but makes me wonder why you'd ever live in such a location. I live in a rural area where I pay $285/month for rent, and can walk to the supermarket in 10 minutes. Moving to an urban area where I pay more in rent and more for food seems like financial suicide unless I'm getting a significantly better paying job.
 
I disagree with this part (on which the whole article is based):

You don't have three hours to take the bus.

You do very much have three hours to take the bus, even if you are working two jobs. Grocery shopping is something that you only need to do once per week at most. The extra effort and time to take the bus is very much worth the reduced prices.
 
I will bike miles out of my way to goto Costco. But yeah, the article is totally true. Many poor people don't have the time for shopping around & many simply aren't aware of all the options they have to save money.

To buy in bulk to save money you need money to begin with.

The more $ you have the cheaper things get. This is why capitalism never has been & never will be a level playing field.
 
Buy UHT or longlife milk in Bulk
Or if your a single mother for example milk powder which is easier to carry.
 
Dunno why poor people are so into milk anyway. Blacks & Hispanics more often than not, have problems with dairy anyway (not saying all poor people are black or Hispanic but a majority of them in the inner cities are).
 
wow, I thought my family was poor........but really, I'm super well-off....but now that I think about it, it makes a lot of sense, which is sad...
 
So you buy in bulk, then bring that bulk back home on a bicycle? :confused:
Hells yeah baby, I used to be a bike messenger. Between my bookbag, handlebars & the crate I had on the back of my bike I figure I can carry about 60-80lb. Just got to be careful & make sure it's all balanced.
 
Hells yeah baby, I used to be a bike messenger. Between my bookbag, handlebars & the crate I had on the back of my bike I figure I can carry about 60-80lb. Just got to be careful & make sure it's all balanced.

I'm sort of impressed, sort of wondering why you don't just take a car.
 
Just finished the full article. It does make many good points. The author may have pushed some examples a bit far as this is an "opinion" article. But his motivation is reasonable. The system in many institutions like banks are not designed to help the poor. It does makes the effort to break out of poverty doubly difficult.
 
The article is mostly true but all cities are a little bit different. But I tend to agree. The cheapest place near my apartment is the Wall-Mart by the bend. Shopping there for me makes sense and I save 40 dollars shopping every week and get 25% food and soda. All the other stores are comparitviely overpriced. Like.. 5.59 for a 12 pack of coke where it's 6.33 for a 24 pack of coke at Wall-Mart. But since I don't have a car it requires a 25 minute walk each way and me lugging my groceries back to the apartment. Now, I'm young and I can carry about seventy pounds worth of soda and food back with me. But I doubt the poorer guys and women who live near me can make the trek by themselves.

I suppose spiting a cab is an interesting idea. I wonder if Churches in the area thought about it. Most people without funds generally are not the types to come up with innovative ways to save moneys.. just thirft and humble attitudes really.
 
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