Financial literacy is all the rage these days in politically correct circles. Its popularity can be found in that "fin lit" is a "Mom and apple pie" topic with no known (nor ever likely!) political opponents; and more importantly, no known (nor ever likely!) potential solutions!
['Why don't we do a fly-in at the Broadmoor to get organized?"]
Pay for non-performance! Can't beat that!
As such, financial literacy is a "social problem" which provides an endless source of think-tank research papers, non-profit and governmental grants, travel conferences, and opportunities for relentless social hand-wringing, perpetual political pontification, summits, collaboratives, and "new" initiatives! ["Can we get together in Phoenix to brain storm on this?"]
 |
| "Looking for some silver bullets?" |
Financial literacy "action committees" - don't you just love that phrase! - of the self-important and self-anointed are more numerous than carnival barkers at a State Fair. ["If we can just meet in Vancouver for a pre-planning session...."] They do meet and meet and meet, but the actual measurable results and progress are inevitably "vegetarian" - no meat from the meet! For the most part, all talk and "no action committees". ["But, perhaps if we would meet just one more time in Maui...."]
Here are four simple suggestions for a solution...
Create a financial institution:
- Governed and managed by local consumers.
- Operated on a not-for-profit basis.
- Interest rate on lending capped at 18%.
- Services focused toward consumer, not commercial, finance.
..... why that sounds like a credit union?
"Interesting concept!
[Tell you what; we'll talk about it at our next meeting in Park City...."]
[Tell you what; we'll talk about it at our next meeting in Park City...."]
4 comments:
I'm sure it will all work out when that "local consumer governance" becomes a rubber stamp for management; that 18% interest is suddenly computed using continuous compounding; and small businesses start getting squeezed because their financial institution refuses to lend them money because "it's too hard to learn commercial lending"...
And talk and talk and talk an...........................talk.
Financial literacy studies will never solve the Ethos vs. Pathos problem. Living ethically solves many financial issues. Living by your emotions or Pathos causes many financial issues. The Progressive ideologies adopted as vogue over the last 100 years caterers to the emotional view of living and causes many of the problems that people face. It is a Progressive that calls for a study to determine why their lack of ethics concerning life choices does not work. People who live by a rational Ethos understand you do dumb you get dumb.
Benjamin Franklin in his pamphlet: "Ways To Wealth" displayed the conflict between Ethos vs. Pathos. The conclusion is that while most people understand what they should do, the choose to do what they want to do. When your emotions rule the outcome is usually pretty ugly.
When they go back to creating a financial institutions like a credit union, I am all in!
Excellent, Post. I love that blog's info.
Literacy Programme in India
Post a Comment