Today we're taking a look at some of the shocking differences in lifestyle between the rich
and the poor.
Some things are obvious, like buying fancy cars and houses or going on lavish vacations,
but some of the things that the poor do and the rich don't might just surprise you.
Things like buying prescription medications for animals instead of humans.
Healthcare has been a hot-button topic here in America for decades, but no matter which
side of the political aisle you stand on, there's one thing both sides can't deny: costs
are rising.
Thanks to an aging population, a sharp increase in chronic illnesses such as diabetes and
heart disease, and rising drug and treatment prices, Americans pay more for healthcare
than ever before: in 2016 the US paid $3.3 trillion in healthcare costs, versus $27.2
billion in 1960.
Meanwhile since 2011 alone, American wages have increased just 11%, while healthcare
costs have ballooned by 65%.
This skyrocketing in cost has seen many turn to alternatives to traditional healthcare-
in this case, animal care.
Poor people around the country are now getting prescriptions for their pets which they then
use to receive drugs that they take themselves.
In the case of unregulated drugs such as antibiotics, many are simply buying them directly from
manufacturers or over the internet.
One popular alternative to costly 'human' antibiotics is fish antibiotics, easily purchasable
with the click of a mouse from Amazon or Ebay.
And the price difference can be worth the risk of mis, over, or under-medicating, with
a prescription for human antibiotics running up to $150 a month vs fish antibiotics purchased
in bulk for only $15 a month.
But doctors warn that the risk of using animal products over human ones is very real, with
the potential for adverse and significant side effects including the development of
treatment-resistant 'superbugs'.
Still, the practice is in wide use across the United States and only growing in popularity.
Diet very often is the best preventative measure to avoid a costly hospital bill, and in the
food department the difference between rich and poor in America is also staggering.
While in the last decade American diets have improved significantly, with great increases
of fresh fruit and vegetables, nuts and whole grains, with mirrored decreases in sodium
and sugar intake, the diets between rich and poor families couldn't be more different.
A high income family in America eats an average of 13 servings of vegetables a week vs 10
for a low income family, six servings of fruit vs four, eight servings of whole grains vs
five, and six servings of nuts and seeds vs three for a low income family.
When it comes to nutritionally poor sugary drinks such as soda and artificial fruit juice,
poor families consume twice as many servings a week vs a high income family.
Experts point at several reasons for this disparity in nutrition vs high and low income
families, such as knowledge barrier on which foods are actually healthy and nutritious
vs which aren't.
Meal prep time is also a factor, with lower income families opting for processed foods
that can be quickly prepared.
Lastly, many blame fast food marketing which is almost exclusively aimed at lower income
families, pointing out the sophistication of modern marketing campaigns of fast food
giants such as McDonalds and Taco Bell.
Being poor can be tough, and another way life differs between the rich and the poor is their
ability to respond to emergency situations.
Whether an unexpected illness, car repairs, or another unforeseen disaster, low income
families are often unable to meet these financial challenges and forced into an industry built
exclusively to prey on the poor: microloans.
Defined as short-term, low-sum, but high interest loans, the most commonly known include auto
title loans or payday loans.
Designed to ensnare the most economically vulnerable, microloans offer instant access
to cash with very short-term repayment terms and brutal interest rates.
As the lenders know full well that most of their customers won't be able to repay the
loan in time, let alone the interest rates, they often offer additional loans to “give
some breathing room”, all the while dragging individuals even further into debt.
In 2017, the Consumer Financial Protection Bureau discovered that 90% of fees collected
by lenders per year were from individuals who had borrowed seven or more times, and
75% from individuals with a whopping 10 or more loans.
Banned in several states, microloaning is still a booming industry earning $6.5 billion
dollars annually.
Attempts at regulation of this industry has met with stiff resistance, often from those
it preys on themselves for whom it can be the only lifeline in an emergency.
Still, progress has been made and along with bans across the country, various state governments
have looked into working with banks to establish conventional installment loans with low interest
rates.
Some lawmakers though are looking to expand the fight to big banks too, targeting banks
that charge minimum balance fees that exclusively target low-income families who are unable
to maintain a minimum bank balance.
Though relatively mild, these fees can add up month to month and end up costing a low
income family a significant amount of money.
In a sense, people are paying to stay poor.
In the fight to afford expensive health care, rising food costs, and pay down predatory
loans, the poor also do one other thing that the rich don't: work harder for less money.
While the rich have historically worked more hours per month than the poor, the gap has
been closing with the rich working an average of 235 hours and the poor working 210-220
hours.
Many financial experts are quick to point out however that the quality of the hours
worked are not the same between the two classes- hours worked by the poor are much less personally
satisfying and much more stressful and labor-intensive, which can have a great amount of ancillary
effects on the individuals working those jobs to include low self-esteem, lack of motivation
for improvement, and depression.
High-income individuals also often have benefits that low-income individuals don't such as
healthcare, retirement plans, and job security.
And if that wasn't enough, high-income individuals have also seen a meteoric rise in wages since
the 1970s, with the top 1% seeing a wage increase of a whopping 156%, vs a 65% increase for
working-class America.
The bottom 10% make on average $8.16 an hour while the top 5% make $49.74.
Due to job insecurity and lack of full-time employment, low-income families are also often
forced to find two or three jobs to fill out a basic 40-hour work week.
This directly translates into increased transportation costs, higher rates of stress, and lower wages
versus a high-income individual with a single, long-term job and the benefit of time-in-position
wage increases and promotions.
Lack of paid leave and odd hours also compound the problems of a low-income family versus
a higher income one.
All that stress often results in another unfortunate thing poor people do that rich people don't:
avoid getting beat up by a family member.
Domestic violence rates amongst low-income families can be a staggering 5 times greater
than high-income families.
High rates of stress, personal and job dissatisfaction, and financial hardships all act as a trigger,
with 9.5% of low-income households having an abusive family member vs 2.7% of high-income
households.
Financial status also directly affects a victim's likelihood of being abused domestically, with
low-income individuals lacking access to professional help or the ability to leave their living
situation.
The difference between rich and poor is still staggering even in a modern First World nation
like America.
Though comparatively much better off than low-income households in less developed nations,
the truth about poverty in the industrialized world is significant, with entire families
trapped in dead-end predatory loans, losing access to high-cost healthcare, and unable
to improve their situation due to job insecurity and lack of education opportunities.
Actions from lawmakers however have helped alleviate some of this strain for the poorest
amongst us, with minimum wage hikes across the nation and the establishment of federal
protection agencies such as the Consumer Financial Protection Bureau.
What do you think about the difference in lifestyle between the rich and poor?
With today's rising food, housing and health care costs versus stagnant wages, is the American
Dream of a middle-class lifestyle still a financial reality for most?
Let us know in the comments!
Also, be sure to check out our other video called 10 Surprisingly High Paying Jobs!
Thanks for watching, and, as always, don’t forget to like, share, and subscribe.
See you next time!