In "America: Freedom to Fascism," there is a conspiracy theory about why this is going on. I don't know about the finger pointing but I do know that there are two things that are true. Poorer people are easier to control. The middle class is shrinking with more people falling on the poor side of the line than the rich.
And there is no doubt that the system is set up to just this.
Everyone knows at some level that the system works this way but they fail to take that knowledge and put it into action. My wife and I discuss these things and are working on our plan to fix things for ourselves. Yesterday we were talking about Private Mortgage Insurance (PMI). This falls into the plan of making the rich richer at the expense of everyone else.
For those of you that don't know, PMI is an extra fee that you pay to the bank if you can't come up with a 20% down payment for your house. Most people today don't have 20% saved up for their house and so they end paying this extra fee. You are giving money to the bank just because they have you by the short and curlies. You either pay it or you don't get your house.
Sure you can get a loan for the 20% if you want. Banks are always willing to give you an 80/20 deal. The reason they do this is because you pay a higher interest rate on the 20% so they end up getting the extra money anyway. They get richer while you throw money away.
The thing with PMI is that it isn't needed because your house is collateral on the loan. You don't need insurance. Your house is the insurance. You either pay for the house or the bank kicks you out and sells it to get their money back.
Tomorrow, more on interest.