Blog Post #4

In today’s economy low-wage earners are an increasing majority and corporate organizations have found ways to tap that resource for profit. Unfortunately, the method used is to hold low-wage consumers in perpetual debt. Companies specifically target less savvy consumers who already have difficulties acquiring the bare necessities to survive. These people are offered goods and services, often at a higher markup than normal retail, and then charged exorbitant appreciation rates. These business practices have effectively driven a wedge into the opportunity divide. In order to be competitive people require resources that they are unable to acquire for a fair price. Unscrupulous companies then use these resources to extort money from the people who need them most. This cycle keeps lower rung consumers poor, freezes upward mobility, and further stratifies society.

It’s difficult to fully analyze all the effects of this poverty profiteering business, or how to change this dynamic that has been so carefully engineered for the express purpose of profit at the expense of opportunity. However, some general behavioral and policy changes could diminish the negative effects of these practices. First, the government should enact and enforce more stringent policy regarding consumer safety. Second, companies should re-evaluate their profit ratio to the potential harm to consumers, and find a more equitable balance. Finally, consumers need to be more alert and capable of analyzing contracts before falling victim to these types of debt entrapment. In order for any of the above to actually happen would require time, money, and education. Consumers need to be educated in better business sense. On the corporate side there are several possible solutions. Corporations could lower their prices and receive subsidization from the government, or a public government funded alternative could provide resources to those in need. Poverty shouldn’t be a business, it should be a problem for society to solve.