Loans For The Unemployed May Be A Solution

The world is full of financial hardship, and American society possesses a great deal of controversy concerning lending. Unfortunately, short term lending, such as payday loans or title loans, creates a structural void within American society. According to Wikipedia, “Structural inequality is defined as a condition where one category of people are attributed an unequal status in relation to other categories of people” (wilipedia.com). When working class Americans apply for a payday, the unequal status between upper and middle class possess a bigger separation financially. The never-ending process of a short term financial fix becomes lifelong debt. Thus, middle class society becomes lower class society. Eventually, working class society will struggle to say above the poverty line. In addition to an imbalance in society classes, short term lending targets consumers who life paycheck to paycheck. In Rigging the Game by Michael Schwalbe, the author explains the reproduction of inequalities. Schwalbe discusses the different kinds of capitals human, social, and cultural (10). The three capitals unknowingly shape Americans social system. Many businesses capitalize on these capitals knowing no laws or regulation exists to stop them from capitalizing on individuals who no faults of their own were born into these unfair capitals. As a result, short term lenders possess the ability to have extremely high interest rates and outrageous fine print penalties because there is little

With concerns of job security many can suddenly find themselves out of work and financially in debt.

A nation’s economy plays a vital role in how a nation operates. The United States economy faces a large variety of problems in this paper; we will focus on 4 major economic problems, unemployment, inequality, federal debt, and the financial/credit market. All four issues are interconnected in some way with deep social and economic implications. These issues were emphasized during the Great Recession that hit the U.S. economy in 2007.In the following paper, we will look at each of the four topics individually as well as look at how each plays a significant role in one another’s overall impact on the U.S. economy as well as individuals in the United States. The United States plays a crucial role in the world economy, meaning that every issue and difficulty faced the United States economy has implications far outside the U.S., understanding how these issues relate to one another sheds insight into just how connected every area of the economy actually is.

As the United States sled into a great economic depression in the early 2000’s, the people of this country grew desperate and in need of government assistance. As with any economic downfall the unemployment rate grew to a staggering high. Most families were despondent to stay afloat the poverty line on whatever means possible. But what are the effects of continuously throwing money at people even when the economy bounces back? In an editorial recognizing these effects, “Welfare Dependency Destroying America,” John Mariotti, an advisor to and president of many successful companies explains why giving handouts aren’t always a positive matter.

In my current role as a Regional Facilitator Supervisor with the SC JUMMP (Jobs Upfront Mean More Pay) Program, I have first-hand experience with individuals who have been negatively impacted by the current world economic downturn. The SC JUMMP Program tailors to individuals who applied for FI also known as welfare. The participants are referred to our program by DSS. We then provided orientation and assessments to each participant. We have them complete a series of questions to rate their skills in comparisons to the current workforce industries. We then have them attended 30 hours of job readiness workshop to assist them with gaining

A college student in today’s society obtains a high amount of debt from all the necessary loans taken out to pay for the expensive cost of a college education. For those who do have a high paying job after college or are in generally lower salary careers, these debts become lifelong companions because they are unable to pay them back with their incomes. It is proposed that income-contingent loans will help people paying back student loans to pay them back at a rate in which is based on how much money they are making. Then after 10-20 years they are forgiven of their debts, which allows them to put their incomes towards building their future rather than paying back their past. Kevin Carey is an American higher education writer, policy analyst and a Director of the Education Policy Program at New America. On October 23, 2011 he published an article, titled “The U.S. Should Adopt Income-Based Loans Now” which discusses the need for income-based loans here in America. An analysis of Kevin Carey’s essay will identify and detail the author’s project, two claims and evidence, and the refutation in order to determine its effectiveness.

According to CareerBuilder.com, a whopping 61% of American households lived paycheck to paycheck in 2009. That number is huge, especially since only 49% lived that way in 2008, and only 41% in 2007. Whether it is due to losing one or both household incomes or simply a reduction in the household incomes, the statistic is staggering. With families not able to adequately save for any unexpected expense that may arise, they are finding that more often than not there is more month than money. So what happens when the rent/mortgage payment is due, groceries need to be purchased, and then the car breaks down? For some, a small personal loan at a local bank is all it takes to get back on track. For many though, this isn’t an option, and they

Key informant interviewee Natalia Abrams, stated that “this is a time where media and politicians are talking about student loan debt but they are only focusing on policy for the new college student, but there needs to be a policy for the 43 million existing borrowers.” There are two separate policy issues that need to be analyzed in order to address the student loan debt crisis. Research shows that there is a difference among default rates based on race and socio economic status. These differences left unchecked can wreak social and economic havoc on society. While student loan debt crisis may not be a crisis for all, the danger is the growing amount of debt that a significant fraction of borrowers are currently saddled with that is preventing

Since the early 2000’s the unemployment rates of the United States have been constantly changing. For most of this time unemployment rates were increasing at a quick pace as the country was dealing with internal financial issues of its own. When people are out of work the rates of depression and crime seem to skyrocket. This is due to the lack of funds coming into a home which result in some less than admirable acts being committed. There are many causes of unemployment and many effects that unemployment can have on not only our economy, but our personal lives as well.

In addition these students will have problems in accessing loans due to poor ratings from the credit reference bureaus, and hence have difficulties in purchasing assets such as houses and vehicles, starting businesses, and venturing into entrepreneurship. Moreover, the U.S. economy depends on high consumption, and this will force the government to depend on the foreign lenders because its citizens will lack disposable incomes. However, Valenti, Edelman, and Ostern (2013) observe that student defaults will not result in a debt crisis. This is because at least ninety percent of student loans are guaranteed by the government. Moreover, the student loan size is at tenth percent compared to the mortgage market. The objective of this paper is to critically examine the long term and short term impact of

In the midst of the current economic downturn, dubbed the “Great Recession”, it is natural to look for one, singular entity or person to blame. Managers of large banks, professional investors and federal regulators have all been named as potential creators of the recession, with varying degrees of guilt. No matter who is to blame, the fallout from the mistakes that were made that led to the current crisis is clear. According to the Bureau of Labor Statistics, the current unemployment rate is 9.7%, with 9.3 million Americans out of work (Bureau of Labor Statistics). Compared to a normal economic rate of two or three percent, it is clear that the decisions of one group of people have had a profound affect on the lives of millions of

without a home and in financial straits in the aftermath of the 2010 Foreclosure Crisis. However,

With the combination of unemployment, limited reserves, and large population in need, the relief that many Americans sought and used may never be able to satisfy or stabilize their financial crisis effectively. Since the sources of aid and assistance were only locally available to those had

As the U.S. economy continues its struggle to climb out of a deep recession, personal loans remain very difficult to secure. Having shouldered much of the blame for the financial hardships that have befallen consumers across the nation, many banks now require potential borrowers to meet strict criteria for an approval. With the financial institutions being more selective about who they assist, Detroit locals like Ashley Wright are learning that consumers with excellent credit and decent paying jobs are the most likely to make the cut. "Getting an approval was definitely a journey," said Wright, who was in search of a personal loan to help out with school and living expenses. Wright found that a private bank was the best place to turn for

The Great Recession revealed the financial vulnerability of millions of US households. In its aftermath, researchers and policymakers have turned their attention to improving the next generation’s knowledge of personal finance and its access to secure financial offerings (US Department of the Treasury 2014) (Margaret 2015). While current economic conditions appear to be showing signs of improvement, 83% of American workers continue to be impacted by personal financial issues (“2013 Research Report on Employee Financial Stress,” Financial Finesse, June 2013) (Shele 2015 p. 67). The main reason so many people have personal financial issues is because of the lack of knowledge that people have about the meaning of financial terms. If you lack knowledge or don’t fully understand financial terms there is no way that you want have personal financial issues.