The above home was built for a family on ABC's "Extreme Makeover". Now they have let it go into foreclosure because they used their "equity" on a botched business deal. I've heard that roughly 80% of people who win the lottery eventually have to claim bankruptcy. I've also heard that the winners of HGTV's Dream Home giveaway eventually have to sell the home or end up getting foreclosed on. The moral of the story is that people don't appreciate, or have the wherewithall, to use free handouts (bailouts) appropriately and better their lives. People in general are stupid and I've always maintained this stance. And this story is no exception. Our society keep bailing people out, like in the current mortgage crisis, and people will continue to squander the money away and end up in worse situations than where they began.
Bottom line is this, if you don't have blood, sweat or flesh in the game, then you won't appreciate what you're given. Learning lessons the hard way is the only way to prevent future stupid decisions.
I agree with you 100%. BTW - glad your back. Kim
ReplyDeleteThanks Kimberla. Glad to be back!
ReplyDeleteThe problem with being given a big gift: it usually knocks someone up a tax bracket or two, which happens to be a place they've never been before, don't understand, and cannot afford.
ReplyDeleteGame Shows, the lottery, extreme makeover home edition (and the like) give people a lot of stuff that they actually have to pay for--they get to pay all the tax on their "winnings" which usually means parting with a portion of them...which they aren't prepared to do. They don't know they have to pay, so they don't plan on it, and they don't want to pay either...would you want to give away half a "gift" you got?
When Oprah gave away cars to members of her studio audience, a lot of them were not so enthusiastic (despite their hysterics only hours earlier, while cameras rolled) when they learned they would have to pay the taxes on the vehicle to collect it, and that it actually bumped them up a tax bracket because it was such a large "gift," which meant cutting a larger check to Uncle Sam that year...all because that nice billionairess had the nerve to give them A BRAND NEW CAAAAAAAR!!!!!!!!!
I'd like to think that people would learn "the hard way" and then keep clear of pitfalls, but I don't know if I give the masses that much credit...as you said, they are pretty stupid. How would the credit card companies, insurance companies, big tobacco, and the state lottery keep making money if the majority of people were to somehow wise up?