Everyone has heard this sentiment at some point in their lives, often to justify the "service economy." Great goal for an individual, but how does that make sense??
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"Service economy" jobs feed off people who produce products for a living, aka creating value. Without manufacturing, what producers do we have? The tech industry? The whole of America cannot subsist off the tech industry. So what's left? Construction? Farming? America is supposed to survive off providing healthcare and financial services to farmers and Google employees?
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To work in tech, or in most service sectors like finance, law, medicine, data analytics, etc, let's say your IQ needs to be about 1 standard deviation above the mean. That leaves about 80% of Americans in the cold. Overestimation? Maybe, but probably not far from the truth.
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So how does the service economy achieve a 5% unemployment rate? Top service job sectors are education/healthcare with 26M employees in schools, hospitals, and social services, and 23M employees in "government." LOLLLLL
So you have:
- government-funded (or directly government-run) schools, universities, and hospitals employing the biggest chunk of people
- then another 23M people explicitly paid by the government
- then millions of women in the private business sector who are essentially subsidized by government-mandated email jobs
- then the transportation and UberEats sector that feeds off these people's Amazon deliveries and takeout orders
- then the legions of people on disability or food stamps or not making enough to actually pay taxes
- then the remainder of the population that actually creates some kind of value (excluding service jobs like legal, financial, business services, etc)
Our country runs off unlimited debt and pixie dust.
It definitely runs off debt. If you somehow always pay cash and owe nothing, you have no credit score and that hurts you.
to be brutally honest, that makes sense. A credit score is essentially a way to measure your ability to pay off debts. if you never take on any debts, then you have no history of paying off debts. therefore you are unpredictable.
what really needs to happen is banks need to be able to look at more than credit score when assessing whether to give someone a loan or not. it's a good metric, but it should not be the only metric.
Not having debt is a good indication that you paying off debt.
And no one ever consented to having a credit score. Not. One. Person.
now that you mentioned it, technically Experian and FICO should legally obligated to delete your credit score and other personal data on request, at least in California and the EU. I wonder if anyone's tried this?
Not if you've never taken debt.
Yes even if you’ve taken debt…once.
Then you can tell.
No, a credit score is a measure of how much money (((they))) can make off you. As in, the parasites are ranking you as a host. Look at who uses it, who contributes to it, and how to get a higher score.
I pay off my credit cards immediately (meaning they don't make interest), and have had very few loans, each with very low rates (started them when rates were low). They barely make money off of me, yet my credit score is well above average.
Payment networks like Visa are still taking 3% transaction fees off of credit card transactions. The merchant doesn't have to tell you about it but it's still there. Some may offer cash discounts or add credit card surcharges. Interest isn't the only way the payment network makes money.
Credit cards are a way to safeguard checking account assets by not having paper checks floating around with account numbers, or not having to carry large amounts of cash. It is a practical way to protect debit cards from card skimming. There is also transaction protection from fraud or non-delivery of goods or services. Some of the network payment fees may even out with 2% cash back or other intangible benefits such as miles so that it's more enticing to use credit card.
You may be paying off balances monthly without paying interest. It isn't free to use a credit card, and there is more net benefit to the payment network than for you or a merchant. There are trade-offs to consider using a credit card, however.
Notice I said "can make", and not "are making".
So, they didn't lose any money. They got the principal back, and then some.
Basically, you are showing that you have plenty of
bloodmoney that they can suck out of you, if you gave them the opportunity.I have multiple friends who were declined small loans (on the scale of a car loan) because of insufficient debt (not credit score) despite having cash on hand to buy the item outright. The indicators they use are crazy.
Anyone with $2000 could take $2000 in debt and spend $4000 in nonsense and be left with nothing. Having money is not a good indicator.
What you want to know is how predictably they pay off debts. This requires not debt, but a history of paying them regularly and on time.
If this were true, then the score itself would be vastly wider, and it would be entirely based on whether the debt was paid or not. This is completely false on both accounts, for example, paying off a debt early to pay less interest hurts your credit score. Being a minority gives you preferential credit treatment. It’s never been about paying debts, it’s about how much they can fleece from you or write off from you for ESG money and government compliance. I’ve know people who have never once made a late payment or had any negative credit impact after multiple houses and they still can’t get above an 800 credit score, simply because they pay off the loans quicker.
What other metric can there be for objectively assessing whether someone can pay off debts than their debt-paying predictability?
How would you decide if you were to loan your money at risk of losing it?
an excellent question.
I don't have concrete answers, but one idea would be to use the borrowers current income/expenses ratio.
Granted, that's one factor.
Debt is the currency of slaves.
Our paper dollars right now are only backed by the implicit threat of our military - which has been a glorified welfare program for mulattos and faggots for a long time now. We'd be obliterated in a hot war with Russia/China.
Can confirm. Although I do have some student loans but I'll drop thousands on stuff in "cash" and then when I do want to take out a small loan I get told to fuck off because I have no credit history