Black People : Rising Gasoline Prices hit Poor Hardest

NNQueen said:
Has anyone seen the commercial asking people whether they could live without their cars and a sister responds, no way that she could ever not have her car. What about you, could you live without a car or at least drive it less frequently during the week?

Now with the national average price of gas at around $2.85 per gallon, and getting higher, has this caused you to make a change in your lifestyle when it comes to transportation or do you simply complain about it, shrug it off and pull up to the next gas pump and fill it up?



I'm not an economist, but do you ever wonder whether we, as conscious Black people, may be contributing to the polarization of poor Black people based because we choose to continue to accept the ever increasing cost of goods and services because some of us may be able to afford to pay regardless?

Maybe the more we accept it and not protest against it, causes the gap between the poor and the rich to widen. As this gap gets wider and wider, who knows, those of us who are fortunate to still have jobs may become the "new" working poor.

What do you think?

Source: http://www.msnbc.msn.com/id/12424523/


When I lived in los angeles folks thought I was crazy because for long periods I would take public transportation to work and drive on the weekends or when I had to run errands after work.

Where i live now i could walk or ride my bike to the store and since I'm not working I have reduced my time and expense travellling around the metroplex. But there is no public transportation in my area so I am forced to drive in most instance.
 
NNQueen said:
This is not about gas prices but something you (IFUC) wrote reminded me of what I saw on the news this morning. The average cost of housing increased 14% last year while the average income increase was approximately 4%. This was mentioned in reference to the fact that some mortgage lenders are trying to make it possible (not necessarily affordable) for people to purchase homes. They are now offering the 50-year mortgage which makes the monthly payment lower, but in the long run, you wind up with a lot more house than you can afford. You do build equity but you're mostly paying interest as equity builds a lot slower.The example given was based on a $100,000 mortgage at 6.75% (I believe it was that rate) interest for 50 years, the buyer will pay close to $292,000 in interest alone. In other words....BAD BUY!

Well, so far I'm able to afford to buy gas, even at $2.85 per gallon, but I certainly don't drive around as much either.

I don't know by what standard is being used to define "poor" these days but some days I feel like it. What's the poverty level in this country anyway? Anyone know?



This depends on the appreciation value of the home over the same period of time. Keep in mind the interest payments are high but tax deductable and if you recieve a refund at the end of the year this can be used to make additional payment of the premium for the next year. If the 50 rate structure is fixed this is better at the moment thanshorter term adjustable rate mortgages. Check the rising figures for home foreclosures. I am willing to bet many of these are on adjustable rate plans.
 
Give or take a few hundred $$ for the two year time gap......

NNQueen said:
This is not about gas prices but something you (IFUC) wrote reminded me of what I saw on the news this morning. The average cost of housing increased 14% last year while the average income increase was approximately 4%. This was mentioned in reference to the fact that some mortgage lenders are trying to make it possible (not necessarily affordable) for people to purchase homes. They are now offering the 50-year mortgage which makes the monthly payment lower, but in the long run, you wind up with a lot more house than you can afford. You do build equity but you're mostly paying interest as equity builds a lot slower.The example given was based on a $100,000 mortgage at 6.75% (I believe it was that rate) interest for 50 years, the buyer will pay close to $292,000 in interest alone. In other words....BAD BUY!

Well, so far I'm able to afford to buy gas, even at $2.85 per gallon, but I certainly don't drive around as much either.

I don't know by what standard is being used to define "poor" these days but some days I feel like it. What's the poverty level in this country anyway? Anyone know?

@ Poverty level question:

http://skeptically.org/economics/id20.html

Based on data provided, one can add approximately $4,000 for each additional household member.
 
I don’t see it getting any better with immigration keeping wages lower and when wages do increase a lot of companies send jobs overseas.
But if a 50 year mortgage lets you buy a house, go for it. Consider: Tax deductions, what would you have paid in rent in 50 years, appreciation, rents will go up but house payments should stay about the same. All of these will more than cover the interest paid. But only if you are responsible enough not to make the 2 mistakes I see a lot, otherwise could be better renting.

Can’t afford to set money a side for repairs. A small water leak or not maintaining the property turns into thousands for structural repairs. So the house could go up in value 20K in a few years but it is no gain if it now cost 25K to repair it because did not take care of a small problem at first. Especially hard with single mothers trying to raise children.

I see this way to often.
We sometimes seem like we will take any loan some bank will give us even if we don’t need it. So after a few years of paying down the mortgage and good appreciation you take an offer to refinance or get a home equity loan. We suddenly have all this cash and it gets wasted on things we don’t really need like better cars, vacations or things that depreciate. After awhile the cash runs out. We get laid off work or have medical problems and also have a much higher loan payment. Then foreclosure/Bankruptcy and nothing to show for having a home and now have a bad credit score.

Easy to get caught up in things and forget these 2 rules so remember, remember, remember.
 

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