PhilMur's thoughts on biz/tech/money/life

Rich by Debt??

Posted in Personal Finance by phil938 on August 24, 2009

What a lie.

Recently I saw a television commercial for a local retailer in which a limosine, laden down with newly purchased merchandise tied down to the top of the limo roof, was pulling out of the retailer’s parking lot.  As the limo pulled away, the store owner or manager’s young son asked his father, “How do rich people get their money?”  The father responded with a response of “Credit, my son; credit.”

Remember, the child in the retailer’s commercial was impressed by the “rich person” he saw.  But many of the symbols of wealth we see around us today are financed on credit cards, 90 days-same-as-cash, and home equity lines — clear examples of where the desire to possess or belong have led people into poor decision making.  Juliet Schor in The Overspent American says that Americans become obsessed with the symbols of success (nice car, house, etc.) more than they care about the success or money in and of itself.  In other words, if you can’t flaunt it, what’s the use?  This type of thinking creates a minefield for those who hold tightly to those symbols of success who also have access to easy credit.

I hope I’m not the only one out there upset by the sad truth communicated by this TV commercial.

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