Maxed Out

This isn't the first time I've seen this documentary... nor do I think it will be my last. There really is so much to say about how ridiculous the laws are that allow credit card companies to become predators not only to college age students, but adults as well. It's incredibly sad that people take their own lives over something like debt, it should never happen. I think this movie should be a part of everyone's curriculum, because there is no way to stress enough the importance of having this information. To know that this could just as easily happen to you, it's an important lesson.

Maxed Out with little thought

After watching the film Maxed Out, I tried to think of who was most to blame for the massive debt in our nation. Was it the banks preying on unknowing college students, the people who wished to live more lavish lifestyles than they could afford, those forced into bankruptcy only to re-enter the cycle? Many of the messages conveyed in the movie stuck out to me and it struck me how twisted it is for our country to make money off of others debts: "debt buying is one of the fastest growing industries on Wall Street. Banks purposefully hire employees who have worked in the retail business so that they can lure potential clients in with glamorous offers and money upfront (without looking into the small print).
However our society does need to be smarter than falling for every credit card pushed in front of us. Many gather debt by losing track of their purchases or spending to lavishly. I recently read an article from the Wall Street Journal having to do with the average price of prom these days and I could not believe proms can cost anywhere from a couple hundred to a couple thousand dollars. Here is an article from the Denver Post about the average cost of a prom. This is one great example of how young teens and parents recklessly spend for one night. Before spending so much on a dress or new pair of shoes, we need to think about the repercussions of spending.

I am really glad we got to watch this movie in Econ because although I already knew the the troubles that are associated with credit cards and college students it was very beneficial to hear real life stories from the students in the video. Our whole economics class is going off to school next year so I think it was very important for us to see how easy it is to fall into debt when credit card companies are targeting young students. Colleges often benefit when college students purchase credit cards so the schools do not often teach the students about the risk of falling into debt. High Schools are not paid to promote credit cards which is why it is easier to teach the horrors of debt to high school students rather than college students.
Even though I was really glad to hear the risks before going off to college, the video did not really address any stories of people who do not end up in debt. There are a ton of college students who do end up in debt but there are just as many students who do not.

Maxed Out

I thought this documentary applied greatly to our class. Many of the sob-stories were about college students who were bamboozled into buying credit cards without realizing how credit cards actually function. Thankfully, I know the risks involved with owning credit cards, and while many people run into trouble, as exhibited by the film, I think that there are many benefits to credit cards that the documentary does not bring up. For example, as Chapter 25 in Economics by Example explains, credit cards allow consumers to buy things with money that they may not have at that specific moment. These purchases fuel the economy and allow people to buy more because it is rare, when people buy a car, that they have all of the money needed to buy the car at that specific moment in time. However, it is possible that buy the end of the month, when they need to pay their credit card bills, they will have the money.

Maxed Out

As a person leaving home for college in the coming months, a lot of the elements in Maxed Out can be really terrifying for people. The thought of falling behind on bills thanks to financial decisions, the brutal consequences of these actions, and (arguably the most scary for my age group) the constant pressure from credit card companies that new college students face. Given the stories provided by the movie, while it may be unfathomable for me to imagine my spending getting out of control, it still sticks in the back of my mind that the victims of these credit card companies probably thought the same thing, and then wound up $12,000 in debt by their Sophomore years. I worry for all the kids I go to school with now, all the kids I will go to school with in the future, and even myself because of this. Maxed Out showed me in detailed fashion how bad the debt problem in America is, and I fear it may only get worse as time goes on. And now that I am on the verge of going to college, I have to say I'm sort of afraid of becoming part of the problem, not because I am afraid of winding up in bankruptcy-bound debt before I graduate college, but just because I want to be a smart spender and I worry that I can't be given the state of the US Economy and pressure from companies. So many people are already in debt, I just hope I won't be part of the problem. If nothing else, Maxed Out scared me straight.

Maxed out and we're next

While watching the movie and with the discussion we had in class concerning chapter 25 of "Economics By Examples" I couldn't help but to think to myself that we're next. We will soon be going off to college and it seems that the excitement to finally get away over shadows the cost of what getting away cost. Like the first man in the movie of Maxed out was slowly consumed by the debt of his ex wife's medical bills and her credit card payments, we will soon be liable of our college tuition. Like many people applying for college I have been working my butt off to apply for scholarships. I 'm refusing to take out any student loans in fear of landing myself in debt. Sure I don't  have to pay them until I graduate, but there isn't any guarantee that I will find a job straight out of college. So i am stunned at the amount of people that are in  debt and we will soon be joining them. Young and in debt.

Maxed Out

I don't really know what to think about this movie. On the one hand I have to appreciate it's goal, and the intention behind the making of the movie: to prevent people amassing huge amounts of debt due to a plastic card in their wallet. However, I also have to question it's effectiveness. It seems to be aimed mostly at a younger crowd, but ineffectively. Its heavy-handed editing and style make it feel like an outdated drivers-ed video, and who's going to say that it's the videos that made them a good driver? I feel more people would place more emphasis on the teacher and the behind the wheel lessons than the clunky, cheesy video lessons. I feel bad saying these things, though, because buried within the sub-par 'movie' is important, extremely helpful information. However the fact that one good source for information exists about this topic doesn't mean more sources shouldn't be created and implemented. It's such an important topic, debt and credit cards, and it should always be important that the viewer connect with the information so that he or she remembers it and utilizes it. Having said this I now worry that a movie will soon come out about credit cards utilizing facebook, twitter, excessive explosions, or all of the above. This shouldn't happen. Don't let James Cameron direct.

Maxed Out

This was my first time watching "Maxed Out", but this is not a new topic to me. Just like my brother, I received my first credit card when I began driving. It made things a lot easier, not having to be weighed down by a lot of dollar bills, but I also knew that it was more than simply a magic card. When I first began to use, I would just use it as a way to purchase gas. But once I got used to it, I would use it more often, but not in excess. The first credit card you receive is one of the most important because its the first time you are taking responsibility over your own money (to a certain extent) rather than asking your parents for cash. I could buy anything with a swipe of a card, but all those bills would add up at the end of the month.

The second thing that stood out to me was when the man who was broadcasting on the radio, who was talking to the woman on the phone. When she said that she was thinking about declaring bankruptcy. But when he asked why, she didn't give a concrete reason behind the declaration. She simply said that she didn't know what else to do. I feel like this is a common occurrence among those who declare. People do it simply because they are so far in debt and don't know how to end it. The must realize that there are other options besides bankruptcy. He was right in telling her to stop school if she cannot afford it and get a job. With a job at least she'll begin to pay off all the debt she has accumulated.

Maxed Out

This is my second time watching maxed out.  At the beginning of the Economics course I was on Netflix and they suggested that I would like the movie.  I then proceeded to watch the movie.  I found the movie fascinating because for as long as I can remember my parents have told my sister and I never have more then one or two credit cards.  We would be in the GAP and they would offer my mom the opportunity to sign up for a GAP card and save x amount of money on that days purchase.  My mom always politely responded no thank you.  I never understood why she never wanted to save money.  When we would leave the store my mom would always tell my sister and I never to open credit cards.  It's dangerous to have more then two or three credit cards because it is more likely for you to spend money that you don't have.  You are charged for each credit card and it isn't necessary to have a credit care for each store.  The movie Maxed Out emphasizes the fact that credit cards are dangerous and that all credit card companies want to do is make money off of you not help make your life easier.  As a senior in high school, planning to go to college next year, I am prepared to be approached by various banks and stores asking if I want to sign up for a credit card, and I will do just as my mother has always done, politely decline.   While I have been very lucky to have had my parents stress the importance of staying away from credit cards, there are millions of people out there who lack a sense of knowledge regarding credit cards and the danger of paying on credit.  I love the movie Maxed Out because it shows the dangers of buying on credit and taking on more debt.  Maxed Out successfully spreads the message by personal stories and facts regarding the dangers of open credit cards, especially when you cannot afford to have one.  If you have a credit card and you cannot keep up with the costs, you are more likely to continue spending money on things you cannot afford.  Credit card companies love when people go over their limit and spend more then they actually have because they make money off of their mistakes.  I think everyone should have to watch Maxed Out, especially people going to college or leaving home for the first time.

Stop Coddling the Super-Rich

OUR leaders have asked for “shared sacrifice.” But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.
These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.
Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.
If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot.
To understand why, you need to examine the sources of government revenue. Last year about 80 percent of these revenues came from personal income taxes and payroll taxes. The mega-rich pay income taxes at a rate of 15 percent on most of their earnings but pay practically nothing in payroll taxes. It’s a different story for the middle class: typically, they fall into the 15 percent and 25 percent income tax brackets, and then are hit with heavy payroll taxes to boot.
Back in the 1980s and 1990s, tax rates for the rich were far higher, and my percentage rate was in the middle of the pack. According to a theory I sometimes hear, I should have thrown a fit and refused to invest because of the elevated tax rates on capital gains and dividends.
I didn’t refuse, nor did others. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.
Since 1992, the I.R.S. has compiled data from the returns of the 400 Americans reporting the largest income. In 1992, the top 400 had aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum. In 2008, the aggregate income of the highest 400 had soared to $90.9 billion — a staggering $227.4 million on average — but the rate paid had fallen to 21.5 percent.
The taxes I refer to here include only federal income tax, but you can be sure that any payroll tax for the 400 was inconsequential compared to income. In fact, 88 of the 400 in 2008 reported no wages at all, though every one of them reported capital gains. Some of my brethren may shun work but they all like to invest. (I can relate to that.)
I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.
Twelve members of Congress will soon take on the crucial job of rearranging our country’s finances. They’ve been instructed to devise a plan that reduces the 10-year deficit by at least $1.5 trillion. It’s vital, however, that they achieve far more than that. Americans are rapidly losing faith in the ability of Congress to deal with our country’s fiscal problems. Only action that is immediate, real and very substantial will prevent that doubt from morphing into hopelessness. That feeling can create its own reality.
Job one for the 12 is to pare down some future promises that even a rich America can’t fulfill. Big money must be saved here. The 12 should then turn to the issue of revenues. I would leave rates for 99.7 percent of taxpayers unchanged and continue the current 2-percentage-point reduction in the employee contribution to the payroll tax. This cut helps the poor and the middle class, who need every break they can get.
But for those making more than $1 million — there were 236,883 such households in 2009 — I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more — there were 8,274 in 2009 — I would suggest an additional increase in rate.
My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.

Warren E. Buffett is the chairman and chief executive of Berkshire Hathaway.

Wal-Mart

It is excruciatingly difficult, in my opinion, for the North Shore community to grasp just how gruesome Wal-Mart has been to many communities in the United States, given that there isn't a Wal-Mart to be found in any immediate area nearby. The feeling must be much different for people that must resort to shopping there given that it is the cheapest (and sometimes only) option available for acquiring everyday necessities. Despite this, I still find it unbelievable that even communities that claim to have "banned" Wal-Mart still have trouble dealing with it. Even though Chicago was listed in the film as one of the cities to boycott Wal-Mart, I still know of a small Wal-Mart that operates just outside of the Metra Station in downtown Chicago. Though it doesn't function as one of the normal and much larger stores usually operates, the influence is still clear. Scenarios and stories such as those presented in the film only further confirm the idea that Wal-Mart has gotten out of control despite all of the seemingly successful boycotts. I am uncertain as to whether or not Wal-Mart can be controlled or limited at this point given its massive vicegrip on the United States, but at this point I can only hope consumers elect to shop elsewhere. The issue is I don't believe consumers will elect to do this, and that frightens me, despite the fact that I live in a community relatively untouched by Wal-Mart's poisonous grasp.

"Sick Around The World"

Perhaps my favorite part of the special Sick Around the World was how each segment of the film tended to focus on the positives and negatives of many more successful healthcare systems around the world than in the United States. Then, near the conclusion of the film (in both a sort of review and collage of previous ideas) the directors presented the Swiss healthcare system that appears to draw from a variety of the systems detailed in the film in an effort to create the most successful model possible. What I enjoyed about this approach was that it helped make a healthcare system completely foreign to Americans seem much more understandable and inviting, given the success that the smaller elements have provided to the other countries and Switzerland as a whole. It makes the idea of fixing the healthcare situation in the United States much less scary and (apparently) much more simple. It may not be a completely new revolutionary cure-all that most Americans are hopeful for, but its a system that is proven to yield great results in a variety of areas, something the United States desperately needs in its health care sector right now.

Supersize Me

Supersize Me essentially confirms the points made about the negative externalities associated with fast food that Barbara Ehrenreich made in her book Nickel and Dimed, but on a much more visible and (literally) larger scale. As Morgan Spurlock's experiment demonstrated, consistently eating the food offered at chain restaurants such as McDonald's causes very serious long-term health problems such as obesity, high cholesterol, high blood-pressure, and diabetes. But even though these health problems surrounding fast food are well known by many people (despite, as the film shows, McDonald's' seemingly consistent lack of nutritional information), it usually remains the only option for Americans that are struggling from a financial standpoint, given that it is the cheapest option available and therefore one of if not the most popular. It presents an awkward and unfortunate situation for the lower working class of the United States struggling in hard times. If only Supersize Me provided answers to this problem instead of just statistics and very visual evidence. Regardless, it is an enjoyable and very educational film.

The Persuaders

If nothing else,The Persuaders reveals many of the secrets and details that advertisers execute in an attempt to make their products appealing to audiences everywhere, something I was very eager to discover and learn about. I understood that advertising has never been a simple part of a business' approach, but I never really considered all of the effort that has to be made to try and appeal to different target audiences in a variety of ways. An example is appealing to children with cereal advertisements that are bright, loud, and colorful and create a lot of excitement. Then, when children are shopping with parents, they have a memory of the cereals seen on television, and the boxes often have the same qualities that their advertisements did and are low on the shelves to be within sight and reach of children, thus creating even more excitement. The Persuaders, for me at least, confirmed the idea that advertising is an extremely complex and deep affair within companies.