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The difference between ‘broke’ and ‘poor’

theguardian.com

211–220 of 234 posts

Re: The difference between ‘broke’ and ‘poor’

#211
post #183

Earlier quoted context omitted.

Things aren’t as black and white as that. There’s a difference between paying a reasonable amount of taxes and having everyone share some of the burden versus a lawless Mad Max style society. The current system is setup to punish the group that I (and probably a lot of developers) belong to. We pay a huge portion of our income in taxes and for me at least, an additional massive chunk of income to insurance post-ACA.…

It's not a punishment; that sort of language is tantamount to sophistry. The tax structure in the US sucks, especially with how, the more you have, the more you can dodge supporting the country that obviously made you so very rich. But, it's not a punishment. It's just a shitty set of laws -- fortunately, laws can change.

> the more you have, the more you can dodge supporting the country that obviously made you so very rich.

My point is this is not true for people who are on the upper end of middle class. You can't dodge anything because your income is taxed at income tax rates, not capital gains rates. You also get all benefits stripped from you as you rise in income. Can't get any breaks on health insurance, can no longer put money into a Roth IRA... Also remember, I'm not just talking about taxes. I'm talking about taxes plus the structure of the ACA.

The system is absolutely designed to put the middle class at the largest disadvantage. Whether you want to call it unfair or a punishment seems like personal preference.

Re: The difference between ‘broke’ and ‘poor’

#212

Earlier quoted context omitted.

It's not helping the poor per se that makes many people uncomfortable: no sane person will share the "poor must die of hunger" attitude. It's that we help only the poor. Look, I pay taxes. Poor people don't. Fine. I get it. But they do get free medical insurance, I don't. They get free college, I don't. All I get back are reminders about "straight white men privilege". That's not fair. Nobody likes paying taxes. But…

It's that we help only the poor. Look, I pay taxes. Poor people don’t. Poor people pay just as much as everyone else in sales tax, excise tax, tolls, meal tax, etc. And because they are poor, they pay disproportionately more of their income in taxes than the wealthy. I live in the Boston area—even though there are 70 colleges and universities here, none of them are free for poor people.

> And because they are poor, they pay disproportionately more of their income in taxes than the wealthy.

That's incorrect. The tax rate is lower for lower income thus they pay less proportionally.

> I live in the Boston area—even though there are 70 colleges and universities here, none of them are free for poor people.

Every ivy league school has income adjustment and will offer free ride based on need:

https://college.harvard.edu/financial-aid/how-aid-works/harv...

Re: The difference between ‘broke’ and ‘poor’

#213

Earlier quoted context omitted.

It's not helping the poor per se that makes many people uncomfortable: no sane person will share the "poor must die of hunger" attitude. It's that we help only the poor. Look, I pay taxes. Poor people don't. Fine. I get it. But they do get free medical insurance, I don't. They get free college, I don't. All I get back are reminders about "straight white men privilege". That's not fair. Nobody likes paying taxes. But…

It's that we help only the poor. Look, I pay taxes. Poor people don’t. Poor people pay just as much as everyone else in sales tax, excise tax, tolls, meal tax, etc. And because they are poor, they pay disproportionately more of their income in taxes than the wealthy. I live in the Boston area—even though there are 70 colleges and universities here, none of them are free for poor people.

I'm pretty sure some, if not most, of those colleges have scholarships that are "need based". And even if they don't, there is the Pell Grant.

Re: The difference between ‘broke’ and ‘poor’

#214

Earlier quoted context omitted.

How is expanding coverage to a larger pool of people (many of which have preexisting conditions that are forbidden from being factored into premiums) and subsidizing healthcare for the poor supposed to make healthcare cheaper? This is just voodoo economics, you don't get to simultaneously reduce costs while expanding coverage to higher risk people and people who don't pay market rates. Getting nostalgic about the 90s…

Most people come under group insurance for an employer. Insurance companies have never been able to exclude for preexisting conditions if you were part of the eligible group. Also the plan offered through the exchange comes under a different pool with different cost. Insurance companies decide how to price group insurance for a company based on the demographics of a company. Subsidizing health care for the poor would…

> Most people come under group insurance for an employer. Insurance companies have never been able to exclude for preexisting conditions if you were part of the eligible group

2 million workers lost their employer provided health insurance following the ACA. Now they're paying for their insurance out of pocket. Granted their employers were paying their premiums, but from the person's perspective they went down from paying little or nothing to paying for all their insurance on their own.

> Subsidizing health care for the poor would theoretically raise taxes not the amount you pay for your insurance.

This is assuming that the subsidy covers the full cost of insurance. If this isn't the case then you're stuck paying an extra tax because your didn't buy the insurance that your can't afford.

> And seeing that retirees in the 90s and today come under Medicare, what does that have to do with private premiums?

Older people cost insurance companies more. 80% of healthcare costs are usually spent in a person's last year of life. Insurance companies can't factor age into cost beyond a government set limit. So the other insurance buyers subsidize the ageing insured population.

Fundamentally you're trying to say that the insurance companies can provide more services, charge high-risk people the same as everyone else, and greatly expand the covered population while reducing cost. That just doesn't happen. If a company provides more services and more expensive services then it's costs are going to rise. And because putting those costs onto the people that incur those costs mean than the majority of the insured population is subsidizing their healthcare and thus their premiums rise.

Re: The difference between ‘broke’ and ‘poor’

#215

Earlier quoted context omitted.

Most people come under group insurance for an employer. Insurance companies have never been able to exclude for preexisting conditions if you were part of the eligible group. Also the plan offered through the exchange comes under a different pool with different cost. Insurance companies decide how to price group insurance for a company based on the demographics of a company. Subsidizing health care for the poor would…

> Most people come under group insurance for an employer. Insurance companies have never been able to exclude for preexisting conditions if you were part of the eligible group 2 million workers lost their employer provided health insurance following the ACA. Now they're paying for their insurance out of pocket. Granted their employers were paying their premiums, but from the person's perspective they went down from p…

2 million workers lost their employer provided health insurance following the ACA. Now they're paying for their insurance out of pocket. Granted their employers were paying their premiums, but from the person's perspective they went down from paying little or nothing to paying for all their insurance on their own.

https://www.factcheck.org/2014/04/millions-lost-insurance/

This is assuming that the subsidy covers the full cost of insurance. If this isn't the case then you're stuck paying an extra tax because your didn't buy the insurance that your can't afford.

That was repealed last year....

Older people cost insurance companies more. 80% of healthcare costs are usually spent in a person's last year of life. Insurance companies can't factor age into cost beyond a government set limit. So the other insurance buyers subsidize the ageing insured population.

Older people wouldn’t be part of the private insurance pool. They would be part of Medicare.

Fundamentally you're trying to say that the insurance companies can provide more services, charge high-risk people the same as everyone else, and greatly expand the covered population while reducing cost. That just doesn't happen. If a company provides more services and more expensive services then it's costs are going to rise. And because putting those costs onto the people that incur those costs mean than the majority of the insured population is subsidizing their healthcare and thus their premiums rise.

And none of that is true. The insurance companies have a separate pool for what they offer for group insurance and what they offer on the exchange.

And older workers would be getting insurance through Medicare.

You’re conflating multiple risk pools. The insurance companies don’t do that.

Re: The difference between ‘broke’ and ‘poor’

#216

Earlier quoted context omitted.

> Most people come under group insurance for an employer. Insurance companies have never been able to exclude for preexisting conditions if you were part of the eligible group 2 million workers lost their employer provided health insurance following the ACA. Now they're paying for their insurance out of pocket. Granted their employers were paying their premiums, but from the person's perspective they went down from p…

2 million workers lost their employer provided health insurance following the ACA. Now they're paying for their insurance out of pocket. Granted their employers were paying their premiums, but from the person's perspective they went down from paying little or nothing to paying for all their insurance on their own. https://www.factcheck.org/2014/04/millions-lost-insurance/ This is assuming that the subsidy covers the…

The Economist reported 2 million employer healthcare plans killed off: https://www.economist.com/united-states/2016/09/10/encumbere...

Furthermore, I would suggest reading your sources in greater detail before posting them. The factcheck.org article does not deny the claim that millions lost their insurance through their employers. From the article:

> It’s true that insurance companies discontinued health plans that had covered millions of people who had bought them directly rather than through an employer. That’s because those plans didn’t meet the coverage standards of the new law.

> In a March 3 posting on the website of the journal Health Affairs, two researchers from the Urban Institute analyzed findings from a nationwide poll and said, “Our findings imply that roughly 2.6 million people would have reported that their plan would no longer be offered due to noncompliance with the ACA.” And in this case, the methodology is made explicit.

> That range could be higher or lower depending on what number is used for the total who had non-group coverage in the first place. The Urban Institute authors cite a study published last year that found estimates of the total number of people covered by non-group policies ranged from 9.55 million to 25.3 million. So if 18.6 percent of non-group policyholders got notices that their policies were being dropped because of the new law, as the poll indicates, then the actual number whose plans were dropped could be as low as about 1.8 million or as high as 4.7 million (coincidentally, the same as the AP’s figure), depending on how many had such policies in the first place.

Many "fact checker" sites try to "debunk" factually correct claims through whataboutism. This is prime example. It does not deny the claim that millions of Americans lost their insurance plans. It turns around and talks about how millions bought insurance on exchanges instead, as though this somehow refutes the previous fact. Using this to try and refute the claim that millions of people no longer have insurance through employment is intellectually dishonest.

> That [the tax mandate] was repealed last year....

Much to the disappointment of the ACA's proponents

> And none of that is true. The insurance companies have a separate pool for what they offer for group insurance and what they offer on the exchange.

> And older workers would be getting insurance through Medicare.

Not every retiree is over 65. And besides, Medicare is getting very expensive, too: https://en.wikipedia.org/wiki/File:Medicare_Parts_A_B_C_D.pn....

> You’re conflating multiple risk pools. The insurance companies don’t do that.

Exactly. Now that the affordable care act regulated insurance companies ability to determine patients, higher risk people are joining and having their healthcare subsidized by the other plan members. In the past, people either got their healthcare through insurance or subscribed to their plan when they were young and continued with it until old age. Now that companies are forced to charge the same rates, there's nothing stopping people from not buying any health insurance (or very cheap health insurance) until they start having high medical costs and then joining an insurance plan to have their costs born by the other customers. People are smart. If they can have their cake and eat it too by passing their costs off to other people, they're going to do it.

It's laughable to claim that providing more services, and increasing the quality of services can be done without increasing costs (short of some significant technological advancement). To claim that the same can be done while decreasing costs is beyond absurd.

Re: The difference between ‘broke’ and ‘poor’

#217

Earlier quoted context omitted.

It's that we help only the poor. Look, I pay taxes. Poor people don’t. Poor people pay just as much as everyone else in sales tax, excise tax, tolls, meal tax, etc. And because they are poor, they pay disproportionately more of their income in taxes than the wealthy. I live in the Boston area—even though there are 70 colleges and universities here, none of them are free for poor people.

I'm pretty sure some, if not most, of those colleges have scholarships that are "need based". And even if they don't, there is the Pell Grant.

Except that students of poor families aren’t in good school systems and often don’t get adequate preparation for college, especially for majoring in STEM.

Re: The difference between ‘broke’ and ‘poor’

#218

Earlier quoted context omitted.

It's that we help only the poor. Look, I pay taxes. Poor people don’t. Poor people pay just as much as everyone else in sales tax, excise tax, tolls, meal tax, etc. And because they are poor, they pay disproportionately more of their income in taxes than the wealthy. I live in the Boston area—even though there are 70 colleges and universities here, none of them are free for poor people.

> And because they are poor, they pay disproportionately more of their income in taxes than the wealthy. That's incorrect. The tax rate is lower for lower income thus they pay less proportionally. > I live in the Boston area—even though there are 70 colleges and universities here, none of them are free for poor people. Every ivy league school has income adjustment and will offer free ride based on need: https://colle…

That's incorrect. The tax rate is lower for lower income thus they pay less proportionally.

If you look at what I listed—sales tax, excise tax, meal taxes—those are the same whether you’re rich or poor, except they have a disproportionate impact on the poor.

Poor people do get most of what they pay in income tax back once they file but that’s not the case for these other taxes.

Re: The difference between ‘broke’ and ‘poor’

#219

Earlier quoted context omitted.

I'm pretty sure some, if not most, of those colleges have scholarships that are "need based". And even if they don't, there is the Pell Grant.

Except that students of poor families aren’t in good school systems and often don’t get adequate preparation for college, especially for majoring in STEM.

Having a STEM degree is not the only alternative to poverty.

A guy repairing my dryer has charged $350 for one hour. I'm sure some of it went towards spare parts and such, but even $50 bucks an hour is a pretty decent income.

Re: The difference between ‘broke’ and ‘poor’

#220
post #126

Earlier quoted context omitted.

I think the recent decades turned us away from ~natural gathering/solidarity mindset. Consumerism drugs you thinking the best thing is to satisfy envy with things, and without a context of cultural sharing habits, many people end up alone struggling thinking people are selfish because today's mainstream is selfish and so it's hard to connect.

From anthropological research people in subsistence farming societies do not tend to accumulate. If there is surplus (which is mainly crops) it is put towards accumulating social capital (fiesta, wedding, social gathering, gifts to neighbors and family). The safety network is not accumulated capital but social relations (social capital). In urban societies relations become more money based and suddenly people tend to…

Pretty amazing (since it confirms my own ideas ;) do you have name or books to read about it ?
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