kallend 2,147 #1 December 30, 2009 We sure see a lot of this around here: WHY AMERICAN CONSUMERS CAN'T ADD Tuesday, December 29 2009 at 06:00 am CT by Bob Sullivan When I published Gotcha Capitalism two years ago, I was in for a big surprise. As I talked about systemic hidden fee fraud all around the country, many, many friends (and even co-workers) found me and asked in hushed tones, “What’s a mutual fund?” “What’s comprehensive and collision?” “What’s a mortgage point?” It was obvious from these conversations that millions of Americans are severely lacking in financial basics, and this shortcoming played a major role in the housing bubble and the resulting economic collapse. I wanted to know why. I'm the hidden fee guy, the “Gotcha” guy. People like me usually rant about dreadful banks are and how unfair big companies are, about how corporate greed caused our economic collapse and about how rampant unfairness built the house of cards that just collapsed all around us and sent the world into a global recession. But it's impossible to ignore the fact that individual consumers made a lot of really bad choices in the past decade. They bought homes with $2,000 mortgages when they only earned $3,000 a month. They borrowed money at 30 percent interest to buy granite countertops. Aren’t they to blame for their own demise? To be an honest journalist, I had to ask: Why are American consumers so gullible, so seemingly out of control? Is there something wrong with us? Yes, several things. But most important is this: Americans are terrible at math. I know you know that. But my research shows we are far worse at math than you think. Exhibit A: Think about the last time you had lunch with four or more friends. What happened when the bill came? Everyone pulled out calculators, there was a lot of murmuring and head scratching and still some of your friends just ended up throwing down a $20 bill and hoping for the best. Now, imagine that crowd in a car dealership or with a mortgage broker. They wouldn’t stand a chance. Turns out, there's an entire field of study -- albeit a small one -- devoted to this subject. It's called “innumeracy” -- or mathematical illiteracy. It’s a hidden epidemic in our society. And the consequences are dire. Just as there is a hidden epidemic of people who are functionally illiterate in our country, there is big problem (bigger, by my reckoning) with people who can’t do basic math. There’s no way to function in our society without understanding money, percentages, interest calculation and so on. Yet in a recent government study, less than one in seven American adults ranked “proficient” at math. Here are a few examples of innumeracy in action: According to the Department of Education’s National Assessment of Adult Literacy, U.S. adults are terrible at solving real-world math problems, like calculating tips or comparing prices in grocery stores. Some dismal results: *Only 42 percent were able to pick out two items on a menu, add them, and calculate a tip. *Only 1 in 5 could reliably calculate mortgage interest. *1 in 5 could not calculate weekly salary when told an hourly pay rate. *Only 13 percent were deemed “proficient.” Worse yet, only 1 in 10 women, 1 in 25 Hispanics and 1 in 50 African Americans made the grade. *Americans are terrified of numbers when it counts most: 20 million Americans pay someone to file their 1040EZ, a one-page tax form with around 10 blanks to fill out. Also, these numbers show up in U.S. student math scores, which are abysmal: *The U.S. ranks 25th among 30 industrialized nations in math scores, down near Serbia and Uruguay. U.S. students thought they had the highest grades of any nation in the study, however. *Half of 17 year olds couldn't do enough math to work in an auto plant, according to President's National Mathematics Advisory Panel. *Study after study shows U.S. achievement falls off the cliff during middle school, when subjects like fractions and percentages are introduced -- exactly the skills you need as a consumer or, for that matter, to move on to algebra, calculus and advanced sciences. But here’s another essential point. How can Johnny learn to add if Johnny’s teachers can’t? *In 18 U.S. states, not even one elementary math class is required for certification. *Some teaching colleges allow admittance as long as students have math skills equal to their future students -- that is, as long as they could pass a 5th grade math test. *It's possible in some states to pass the teacher certification exam (Praxis) without answering a single math question correctly. *In Massachusetts, there's a special program to reacquaint teachers with math. The man who runs the program says half of teachers can't answer basic questions involving fractions and has concluded that many elementary teachers are "phobic" about math. *Teachers seem to be math-averse from the start. College bound seniors headed for elementary education have math SAT scores significantly lower than the national average (483 vs. 515). There are many, many other reasons why U.S. consumers tripped and fell down a mine shaft during the past two years. In my new book, "Stop Getting Ripped Off," I lay out a series of other explanations: Greed, laziness, lack of government regulation and magical thinking. And I offer up my own handy guide to solving today’s consumer puzzles, from buying a home to saving for retirement. But innumeracy is the biggest culprit. Two years ago, I would have had to lay out a doomsday scenario to draw attention to this ticking time bomb. Well, the bomb’s gone off. People who were bad at math could hardly have been expected to see through the consequences of an adjustable-rate mortgage, or to make a sound bet on their future earnings potential. These consumers didn’t stand a chance against mortgage brokers, real estate agent and an overheated market. They can’t fight with financial planners over fees that are swallowing one-third of their retirement savings. Heck, they can’t even stop taking out 250 percent APR payday loans, 1,000 percent overdraft protection loans or paying tax preparation firms $100 for three minutes work to fill out simple tax forms. Now, millions of individuals are losing their homes and are on pace to become destitute in old age. If I only shine a light on only one topic with this book, I hope it will be the hidden epidemic of innumeracy in America. Because if we can’t add, if we continue suffer from an extreme lack of mathematical self-confidence, any recovery we begin is surely doomed.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
mnealtx 0 #2 December 30, 2009 "Heckuva job, NEA...heckuva job"Mike I love you, Shannon and Jim. POPS 9708 , SCR 14706 Quote Share this post Link to post Share on other sites
Amazon 7 #3 December 30, 2009 Quote"Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? Quote Share this post Link to post Share on other sites
airdvr 210 #4 December 30, 2009 Interesting. I agree to a point. It's been going on alot longer than the last 2 years. Case in point: Many times when I worked in the car business people couldn't understand why the payoff on their trade-in was being added back in to the total amount of the deal.Please don't dent the planet. Destinations by Roxanne Quote Share this post Link to post Share on other sites
mnealtx 0 #5 December 30, 2009 QuoteQuote"Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? They quit teaching about THAT years ago, too. Personal esteem is MUCH more important - didn't you know?Mike I love you, Shannon and Jim. POPS 9708 , SCR 14706 Quote Share this post Link to post Share on other sites
Amazon 7 #6 December 30, 2009 Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? They quit teaching about THAT years ago, too. Personal esteem is MUCH more important - didn't you know? I just always enjoy those who attack the NEA for their own shortcomings and for being dumbasses.... I guess that is the height of Red State Responsibility. Quote Share this post Link to post Share on other sites
kallend 2,147 #7 December 30, 2009 QuoteQuoteQuote"Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? They quit teaching about THAT years ago, too. Personal esteem is MUCH more important - didn't you know? A person who can't evaluate -(-1) has no business criticizing others.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
mnealtx 0 #8 December 30, 2009 QuoteQuoteQuoteQuote"Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? They quit teaching about THAT years ago, too. Personal esteem is MUCH more important - didn't you know? A person who can't evaluate -(-1) has no business criticizing others. Neither does a person that can't differentiate 'credit' and 'tax' - did you have a point, or was that just a free sample of the usual condescension?Mike I love you, Shannon and Jim. POPS 9708 , SCR 14706 Quote Share this post Link to post Share on other sites
champu 1 #9 December 31, 2009 Loans, fees, taxes, titles, tips, "sale" prices, driving = gas = money, lines of credit and credit scores, retirement investing, unit price vs item price at the supermarket, commute times and distances, credit card reward programs vs. debit cards. The list goes on... ...you think you know people and that they're smart... Quote Share this post Link to post Share on other sites
wolfriverjoe 1,523 #10 December 31, 2009 QuoteInteresting. I agree to a point. It's been going on alot longer than the last 2 years. Case in point: Many times when I worked in the car business people couldn't understand why the payoff on their trade-in was being added back in to the total amount of the deal. Because the ads say "We pay off your trade". They don't hear the part where it says the difference is added to the loan amount. Selective hearing."There are NO situations which do not call for a French Maid outfit." Lucky McSwervy "~ya don't GET old by being weak & stupid!" - Airtwardo Quote Share this post Link to post Share on other sites
kelpdiver 2 #11 December 31, 2009 Quote *The U.S. ranks 25th among 30 industrialized nations in math scores, down near Serbia and Uruguay. U.S. students thought they had the highest grades of any nation in the study, however. If you were going to pick 30 industrial nations, WTF is Serbia and esp U-R-GAY doing on the list? Most of his examples are examples of financial incompetence rather than math. Though tightly related, schools at least attempt to teach math, but far less effort is made on finance. If people are willing to learn, there are considerable resources out there. Before the web came, there was (still is) a great book called "Getting a Financial Life" oriented for those in their 20s and 30s. Quote Share this post Link to post Share on other sites
jcd11235 0 #12 December 31, 2009 Quote Quote A person who can't evaluate -(-1) has no business criticizing others. Neither does a person that can't differentiate 'credit' and 'tax' Feel free to link to a post where someone claimed a tax credit was the same as a tax.Math tutoring available. Only $6! per hour! First lesson: Factorials! Quote Share this post Link to post Share on other sites
rushmc 23 #13 December 31, 2009 QuoteQuote"Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
Amazon 7 #14 December 31, 2009 Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama Hey that is your basic red state mantra.... how many times have we heard those words coming from rePUBIClowns here on this forum???? Then again we also constantly hear the excuse from some people claiming the NEA made them stupid. Quote Share this post Link to post Share on other sites
rushmc 23 #15 December 31, 2009 Quote Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama Hey that is your basic red state mantra.... how many times have we heard those words coming from rePUBIClowns here on this forum???? Then again we also constantly hear the excuse from some people claiming the NEA made them stupid. See, you voted Obama"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
Amazon 7 #16 December 31, 2009 Quote Quote Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama Hey that is your basic red state mantra.... how many times have we heard those words coming from rePUBIClowns here on this forum???? Then again we also constantly hear the excuse from some people claiming the NEA made them stupid. See, you voted Obama I certainly did....especially when McCain started doing what he has done all of his life and went back to thinking with his little head down there in his tightie whities... when he picked the Caribou Barbie from Alaska as a running mate.Yeah real peach of a FAMILY VALUES guy there.. leaving his wife who did stand by him thru all the affairs.. and his captivity in North Vietnam. Many of the POW's wives did not stay faithful and loyal to the POW husbands while they were in captivity. Quote Share this post Link to post Share on other sites
rushmc 23 #17 December 31, 2009 Quote Quote Quote Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama Hey that is your basic red state mantra.... how many times have we heard those words coming from rePUBIClowns here on this forum???? Then again we also constantly hear the excuse from some people claiming the NEA made them stupid. See, you voted Obama I certainly did....especially when McCain started doing what he has done all of his life and went back to thinking with his little head down there in his tightie whities... when he picked the Caribou Barbie from Alaska as a running mate.Yeah real peach of a FAMILY VALUES guy there.. leaving his wife who did stand by him thru all the affairs.. and his captivity in North Vietnam. Many of the POW's wives did not stay faithful and loyal to the POW husbands while they were in captivity. Only time and admitting that you made a mistake voting Obama will help heal your shame and pain"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
Amazon 7 #18 December 31, 2009 Quote Quote Quote Quote Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama Hey that is your basic red state mantra.... how many times have we heard those words coming from rePUBIClowns here on this forum???? Then again we also constantly hear the excuse from some people claiming the NEA made them stupid. See, you voted Obama I certainly did....especially when McCain started doing what he has done all of his life and went back to thinking with his little head down there in his tightie whities... when he picked the Caribou Barbie from Alaska as a running mate.Yeah real peach of a FAMILY VALUES guy there.. leaving his wife who did stand by him thru all the affairs.. and his captivity in North Vietnam. Many of the POW's wives did not stay faithful and loyal to the POW husbands while they were in captivity. Only time and admitting that you made a mistake voting Obama will help heal your shame and pain Only in your mind... only in your mind.... BWAHAHAHAHAHAHAHAHAHA But keep on posting all the whiny waaaaaahhhhhhh threads you can find from Lush RimJob and Friends. Quote Share this post Link to post Share on other sites
rushmc 23 #19 December 31, 2009 Quote Quote Quote Quote Quote Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama Hey that is your basic red state mantra.... how many times have we heard those words coming from rePUBIClowns here on this forum???? Then again we also constantly hear the excuse from some people claiming the NEA made them stupid. See, you voted Obama I certainly did....especially when McCain started doing what he has done all of his life and went back to thinking with his little head down there in his tightie whities... when he picked the Caribou Barbie from Alaska as a running mate.Yeah real peach of a FAMILY VALUES guy there.. leaving his wife who did stand by him thru all the affairs.. and his captivity in North Vietnam. Many of the POW's wives did not stay faithful and loyal to the POW husbands while they were in captivity. Only time and admitting that you made a mistake voting Obama will help heal your shame and pain Only in your mind... only in your mind.... BWAHAHAHAHAHAHAHAHAHA But keep on posting all the whiny waaaaaahhhhhhh threads you can find from Lush RimJob and Friends. Yes, yes. Keep letting the stupidity out. It is step one in the healing process."America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
Amazon 7 #20 December 31, 2009 Quote Quote Quote Quote Quote Quote Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama Hey that is your basic red state mantra.... how many times have we heard those words coming from rePUBIClowns here on this forum???? Then again we also constantly hear the excuse from some people claiming the NEA made them stupid. See, you voted Obama I certainly did....especially when McCain started doing what he has done all of his life and went back to thinking with his little head down there in his tightie whities... when he picked the Caribou Barbie from Alaska as a running mate.Yeah real peach of a FAMILY VALUES guy there.. leaving his wife who did stand by him thru all the affairs.. and his captivity in North Vietnam. Many of the POW's wives did not stay faithful and loyal to the POW husbands while they were in captivity. Only time and admitting that you made a mistake voting Obama will help heal your shame and pain Only in your mind... only in your mind.... BWAHAHAHAHAHAHAHAHAHA But keep on posting all the whiny waaaaaahhhhhhh threads you can find from Lush RimJob and Friends. Yes, yes. Keep letting the stupidity out. It is step one in the healing process. Well then we must have some REALLLY healthy right wingers here...right??? The are definitely letting it all hang out daily for the last year... so much butt hurt... so much time to go. Quote Share this post Link to post Share on other sites
rushmc 23 #21 December 31, 2009 Quote Quote Quote Quote Quote Quote Quote Quote Quote Quote "Heckuva job, NEA...heckuva job" Personal responsibility.... does that ring a bell???? No shit And most of those people voted Obama Hey that is your basic red state mantra.... how many times have we heard those words coming from rePUBIClowns here on this forum???? Then again we also constantly hear the excuse from some people claiming the NEA made them stupid. See, you voted Obama I certainly did....especially when McCain started doing what he has done all of his life and went back to thinking with his little head down there in his tightie whities... when he picked the Caribou Barbie from Alaska as a running mate.Yeah real peach of a FAMILY VALUES guy there.. leaving his wife who did stand by him thru all the affairs.. and his captivity in North Vietnam. Many of the POW's wives did not stay faithful and loyal to the POW husbands while they were in captivity. Only time and admitting that you made a mistake voting Obama will help heal your shame and pain Only in your mind... only in your mind.... BWAHAHAHAHAHAHAHAHAHA But keep on posting all the whiny waaaaaahhhhhhh threads you can find from Lush RimJob and Friends. Yes, yes. Keep letting the stupidity out. It is step one in the healing process. Well then we must have some REALLLY healthy right wingers here...right??? The are definitely letting it all hang out daily for the last year... so much butt hurt... so much time to go. When the emotions finally calm and you admit to yourself and others the error of your vote, then you will have completed step two of the healing process. Gods speed on your journey toward political mental health my friend"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
Amazon 7 #22 December 31, 2009 Quote When the emotions finally calm and you admit to yourself and others the error of your vote, then you will have completed step two of the healing process. Gods speed on your journey toward political mental health my friend You certainly have an "interesting" fantasy lifeBWAHAHAHAHAHAHAHAHAHAHA Quote Share this post Link to post Share on other sites
rushmc 23 #23 December 31, 2009 Quote Quote When the emotions finally calm and you admit to yourself and others the error of your vote, then you will have completed step two of the healing process. Gods speed on your journey toward political mental health my friend You certainly have an "interesting" fantasy lifeBWAHAHAHAHAHAHAHAHAHAHA It is fun"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
Andrewwhyte 1 #24 December 31, 2009 Anyone who cannot cope with mathematics is not fully human. At best he is a tolerable subhuman who has learned to wear shoes, bathe, and not make messes in the house. ~Robert Heinlein, Time Enough for Love Quote Share this post Link to post Share on other sites
Belgian_Draft 0 #25 December 31, 2009 QuoteAnyone who cannot cope with mathematics is not fully human. At best he is a tolerable subhuman who has learned to wear shoes, bathe, and not make messes in the house. ~Robert Heinlein, Time Enough for Love "The capacity for getting along with our neighbor depends to a large extent on the capacity for getting along with ourselves. The self-respecting individual will try to be as tolerant of his neighbor's shortcomings as he is of his own." -Eric HofferHAMMER: Originally employed as a weapon of war, the hammer nowadays is used as a kind of divining rod to locate the most expensive parts adjacent the object we are trying to hit. Quote Share this post Link to post Share on other sites
