Financial knowledge is a very good skill to have. Whether we want it or not, most aspects of our lives are about money. Data from the World Economic Forum shows that about half of Americans are financially literate. In the EU, 65% of citizens understand inflation, and 45% can explain compound interest.
Understanding economics can be hard, but the WEF explains that "it's important to develop a basic understanding of the influential role money plays in our work, social life, health, education and everything in between."
Perhaps driven by the knowledge that more than a third of the population is probably not very well-versed in financial matters, one netizen decided to ask what the dead giveaways are. "What screams 'I'm economically illiterate'?" they wrote.
Some commenters misreading the question and giving answers about finance is pretty ironic, we have to admit. But, at the same time, it's a good reminder of how important educating yourself about money, personal finance, and economics is, right?
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Millionaires lecturing poor people how it's all about your attitude and mindset, as if the landlord will accept attitude as rent payment.
Anyone promoting the idea that tax cuts for billionaires will feed the hungry, heal the sick, house the homeless, or in any way improve the lot of Joe Schmoe.
The morons that celebrated Trumps trillions in corporate tax cuts because they got a one time bonus of like $1000. Too stupid to realize that if they simply got a $0.50 raise per hour instead, they'd essentially get the equivalent of a $1000 bonus every year going forward*. But you can't fix the stupid who actively vote against their own best interests. *for those that don't understand, full time work means about ~2080 hours worked per year. $0.50 raise * 2080 hours per year = ~$1000 increase in income per year. Every year.
Blaming a sitting president for gas prices.
The same with gas prices and interest rates. This goes for Trump or Biden. I f*****g HATE Trump but it's stupid to blame any leader for things that have no direct control over.
Refusing a raise because "it'll bump you up to the next tax bracket.".
"OMG, California taxes you at 40%!! WHAT A LIBRUL HELL" Reality: 12.3% is the highest tax rate and that's only for income $698,272 or more. Which is how tax brackets actually work. You pay a certain tax rate until you reach a certain threshold. Freedum Land Texas as no income tax because f**k helping people, but also has higher property and sales tax than California. But they never mention that. And well enough off people love that state because no income tax and they can afford the property and sales taxes that their incomes can afford them. F**K YOU if you're not well off, though. And God forbid it gets too hot or too cold there, when the power grid shits the bed and people die. But, hey, Joe Rogan didn't have to pay taxes that would fund that infrastructure, so yay! And no, I'm not saying Cali is perfect. It's expensive AF and nobody can afford housing. Amoing other things. But I'd rather pay my fair share.
Professing that the current President is responsible for the economy, when in actuality, the President has very little to effect on it. Especially the global economy of which we are very much tied to.
Not understanding marginal taxes.
No, there is no scenario where you get a raise and your take-home pay goes down because of reaching a new tax bracket.
Imagine potentially thinking because you made $75,001 a year instead of "just" $75,000 that the entirety of you income would be taxed at a higher rate rather than the $1.00 more you made that "took you into the next bracket."
Complaining about endless credit card debt while getting every meal delivered. :|.
My mom always complained that the front office girls at her job complained about living paycheck to paycheck while smoking cigarettes and eating out for lunch everyday. Food is one thing I will splurge on but I take my lunch to work almost every day, take a drink with me from home and cook dinner at home the majority of the time
Expecting prices to reduce when inflation goes down.
President Biden in November, 2023: “Let me be clear to any corporation that hasn’t brought their prices back down even as inflation has come down: It’s time to stop the price gouging. Give American consumers a break.”
There was a survey done in the last year or so, asking Americans whether they thought the current unemployment rate was a 50 year high or a 50 year low.
A substantial fraction thought it was a fifty year *high*.
Most people are totally unfamiliar with the actual economy and instead have beliefs driven by news headlines.
Yes. But, personally, it's weird to reconcile a low unemployment rate with a regular stream of massive layoffs. And as someone who struggled to find a job for a year after being laid off, it's difficult to know what to think. Having said that, my state is super expensive to live in but has decent social programs for unemployment and my city has strong renter protections which saved me from starving and losing a place to live over that year. It's worth paying a few precentages more in taxes than other states to support these programs. I would feel the same even if I never had to use them.
A lot of people actively refuse to live at/below their means. You'll meet people making >$100,000 a year still living paycheck to paycheck because they just spend all the money they make.
Keep this in mind when people talk about the economy, since a lot of people complaining absolutely could be living comfortably if they downsized a bit. People who are actually struggling often sound basically the exact same as well-off people who have been slightly inconvenienced, which leads to a lot of distortion in how people perceive the economy.
To quote my working class father from when I was making some foolish financial choices, "Don't let your out-go be more than your in-come."
Oh man, there’s so many of these:
- Thinking that a tax write-off is equal to a tax refund
- Conflating one’s own financial struggles with rhetoric state of the national economy
- Thinking that rising interest rates are a cause of inflation, not a remedy of it
- Thinking saving cold hard cash outside of a bank is a sound investment strategy
- Defending tax cuts for the hyperwealthy while you personally don’t have two pennies to rub together.
Big new truck parked in front of a house that looks like it is about to fall down.
One time I worked at lowes, and a customer wanted to buy an item. I told her that she could buy the rest of the items and come back for that one when we had it in stock.
She says "no because then I'll pay more in taxes."
She must have thought that purchasing items separately would cost more in sales taxes.
Belief in trickle down economics. Citing the commons problem.
Old people on Facebook rambling about how people need to fill the empty minimum wage positions because they want someone to wait on them. Usually accompanied by "these jobs aren't career paths so you don't need living wage!"
And also "if we pay them more ice cream will be $10 a cone!".
I don't find it's the old people. It's the 50-60 groups and politicians who look for excuses to not raise the minimum wage.
Buying a new car when you are upside down on your current car loan, and you roll the balance into the new loan.
Paying the minimum on your credit card.
I built my credit by making a purchase one month, waiting until after the report date the next month and then paying the balance in full. No new purchases until after the report date the next month. I kept repeating this cycle and built my credit very quickly without ever having to pay any interest. Figure out what day your credit card reports to the credit bureaus.
Confusing net worth with liquidity. Jeff bezos may have a net worth of billions but he doesn't have that money sitting in a bank. It's in his house, Amazon stock etc.
And that's the issue with how these rich a*s people avoid paying taxes. Any CEO that states "I make $1 in salary" is so full of s**t. They're doing what Muck does, in that they'll manipulate stock and personal tax liabilities to pay themselves but claim a loss in income so they can say "i had $0 TAX income this year". Capital gains and losses and other avenues is how a******s, like Musk, avoid paying taxes.
Not investing in my pyramid scheme. You, yes, you who are not like this dumba*s, you who know how to invest how to win in life contact me for this extremely great opportunity for me to take your money. people that fall for this kind of things.
Or..saying Social Security is a pyramid scheme(My boss). Technically it is, however he was not amused that I suggested he sign his proceeds over to me to keep his ideology pure.
Not knowing the interest rate of your credit card while carrying a balance. Especially on a large balance.
Thinking that tax write-offs actually make some things free. I had an old boss that would constantly say since it was a write-off, what he was getting was free, even though he just spent $500 on it.
The relationship between supply, demand and price is fundamental economic knowledge, if they can't grasp that they would be considered "illiterate".
Perfect example are the dorks that complain about egirls or whatever on Twitch. A bunch of dudes crying about half-"naked" women in hot tubs on that site... who can't comprehend that if a bunch of other dudes weren't giving them money, then it wouldn't be a thing. Dont blame people for making money filling a space with an obvious market. Blame the demand, you dolts.
Every single tik tok / Social media guru headline repeated but no actions ever taken
“ 401k ‘s are a scam and will be worthless “
“ need to have multiple air bnbs to retire “
“ it’s all about section 8 “
Etc .
401k aren't useless but it really is a subpar retirement system that caused more problems with its establishment and replacement of pensions as the corporations that dropped thier pension plans had a habit of not increasing wages to make up for it and yoiur employee matching of what you put into your 401k is not something that's done by everyone and it was hardly done at all at the implementation of 401k leaving a generation short on retirement that we all are paying/going to pay for.
"If we build more housing my rent will go up.".
If supply and demand aren’t being circumvented, this is the exact opposite of what can be expected to happen. An increase in supply with no change in demand generally lowers prices, because buyers have more options to choose from.
Proposing taxes on unrealized gains.
If you have enough unrealized gains to buy something that costs $44 billion you should damn well pay a metric s**t ton of taxes on those gains.
Anyone with a single home who's pleased about soaring property prices
"Thank god I invested in the housing market when I did!"
You didn't invest dumbass. That's a roof over your head. It's a basic necessity. Now you will never, ever be able to afford anything better.
It's all relative. You can sell your house for way more then you paid for it and dump the proceeds into a new home. If you are upgrading to a better/bigger home and/or moving to a more expensive area, sure it's going to cost quite a bit more than you are able to sell your current house for, even though it can be sold for quite a bit more than you paid for it.
I ran the finance department at a ~250 car/month Toyota dealership for the better part of a decade. 1-2 times a year, Toyota Financial (the corporate financial arm of Toyota, not the dealership) would run promotions on certain vehicles for a truly, sincerely no strings attached 0% financing PLUS a $1000 rebate on select models. The rebate did not apply to cash transactions, was applied at time of sale, and the financing carried no prepayment penalty, origination fee, or termination fee.
In short, if you setup financing and paid the car off in the very first statement, you would pay exactly $1000 less and get your new car's title when you go to register it exactly the same as you would if you were to pay cash.
The number of damn-near arguments I had with customers over this who insisted on paying cash anyways was simply astounding. I was literally able to give each of probably two hundred people over the years a legitimately free $1000 and they'd say no. More money than brains.
If it sounds too good to be true, it probably is. 'Probably' being the important word here.
Thinking your Social Security tax is saved for you to later use in retirement. Na, goes to pay boomers now and you are hoping one day young kids will get taxed for you.
Immigration will help offset the shrinking pool of wage earners. But why exempt the rich from contributing to social security?
Thinking installment payments are significantly cheaper then paying all at once.
I don't think many people think that. But usually installment payments are the only way to pay something even a bit more expensive. I certainly don't think they are cheaper, and would pay all the money up front if I had that kind of money. But I don't.
On the left: assuming everything can be paid for either (a) by just taxing rich people, and/or (b) by printing money because "modern monetary theory says you can".
On the right: assuming you can cut taxes and the increase in growth will mean you get more taxes than the reduction and hence can pay for increases in public spending.
Across the spectrum: wanting the state to do more but not be willing to pay for it in taxes.
The criticism of the left is arguably apt but equating both issues AND bothsiding reality, in general, is asinine. The right would never support "increases in public spending" so this entire premise is f*****g dumb. Aside from "by just taxing rich people" would literally be the solution. The ACTUAL issue is that there are too many ways/loopholes that rich people can evade actually paying taxes so that argument is so simplistic in its blindness as to make its agenda perfectly clear. It's so bad faith AF to equate "just by taxing rich people, the left says", which would literally help society and what we are demanding. The reality and what we're actually asking is "IF rich people would pay their taxes..." Two very different things, which this person would know if there wasn't an obvious agenda.
"I want a president who is tough on China!" 5 months later when they get higher tariffs: "Hey! Why are prices so damn high???"
It was one of the few times when a president had a really direct impact on prices. And did it solve the intellectual theft issue? I think not.
Load More Replies...Some of these posts are very much founded in neoliberal ideology. I can remember the head of the Business Council of Australia flogging trickle didn't economics in senate estimates here in Australia, she was asked to name one country it's worked in in the 50 years its been around. No response, she took the question on notice. Shock horror it has never worked.
"I want a president who is tough on China!" 5 months later when they get higher tariffs: "Hey! Why are prices so damn high???"
It was one of the few times when a president had a really direct impact on prices. And did it solve the intellectual theft issue? I think not.
Load More Replies...Some of these posts are very much founded in neoliberal ideology. I can remember the head of the Business Council of Australia flogging trickle didn't economics in senate estimates here in Australia, she was asked to name one country it's worked in in the 50 years its been around. No response, she took the question on notice. Shock horror it has never worked.