She makes a very good point!

They better listen to Suzy when comes to money. She definitely knows what she's talking about. I have been watching her from the very beginning. I know. Chailai

Suze Orman is the most sane, rationale voice when it comes to money management. She somehow mananges to keep human needs, dignity, and respect in the equation. When Suze talks, I listen.

Oh, what a concept! Personal responsibility....spend only what you can afford....where is my dictionary?

the old school term"the rat race"

It's interesting that Suze mentions this. I would love to see more dialogue from candidates about how they will build more prosperity in our country for everyone. But Ms. Orman has just come out with a branded prepaid debit card, laden with fees. The card isn't aimed for the wealthy. It's aimed for those without bank accounts or those who don't want o use credit cards.

How can the lower and middle classes get ahead when they are encouraged to use a card that costs them at every turn?

Again, the problem of poverty and our shrinking middle class is real. It would be great to see some dialogue from the candidates about it.

POVERTY FOREVER PROGRAM: a highway into poverty and not even a sidewalk to getting out. Brilliant, Ms. Orman. And thanks for the thumbs up for the consumer protection agency appointment: yes, we the people need a voice at the table.

miss Orman is in it any more just for the money! She use to be real good, but now her books ,and etc and now her FEE card?????/// give me a break......

First Item – The Middle Class has Disappeared:

Suze Orman makes the claim that “the middle class has disappeared”; if this claim is true then why has the middle class disappeared? One answer could be that the United States is a Plutomony. In fact, a thesis by Kapur, Macleod, and Singh of Citigroup (2005) makes the proposition that the United States and other counties such as the UK, and Canada are in fact Plutonomies.

A plutonomy is defined as “where economic growth is powered by and largely consumed by the wealthy few and the rest” (Kapur, Macleod, Singh, 2005, p.1). According to Kapur, Macleod, and Singh “at the heart of plutonomy, is income inequality” (Kapur, Macleod, Singh, 2005, p.22) and in order to support income inequality, societies must be “willing to tolerate/endorse income inequality” (Kapur, Macleod, Singh, 2005, p.22) thus supporting a plutonomy.

Kapur, Macleod, and Singh state that the drivers for current plutonomy are “1) an ongoing technology/biotechnology revolution, 2) capitalist-friendly governments and tax regimes, 3) globalization that re-arranges global supply chains with mobile well-capitalized elites and immigrants, 4) greater financial complexity and innovation, 5) rule of law, and 6) patent protection are all well ensconced in the U.S., the UK, and Canada” (Kapur, Macleod, Singh, 2005, pp.9-10). In a plutonomy, these drivers support four main goals: 1) control of labor, 2) control of taxation, 3) control of products, production, and processes, and 4) control lawmakers.

Control of labor: In controlling labor, the basic strategies are to increase the flow of labor through favorable immigration policies, such as amnesty and temporary guest status initiatives, which increase the labor pool ensuring that the labor supply outweighs demand thus driving down labor costs. Encourage off-shoring through favorable treaties such as NAFTA, US-Korea Free Trade Agreement, and/or other free trade type treaties, thereby, ensuring that low cost imports are not subject to import tariffs. Controlling of unionization by implementing right-to-work laws, restrictive unionization regulations, negative unionization campaigns, and reducing or eliminating over-sight organizations that help monitor existing unionization regulation or the formation thereof. Finally, implement restrictive or specific minimum wages laws.

Control of Taxes: In controlling of taxes, the strategy is to implement tax policies at all levels of government, Federal, State, and local, that reduce taxes owed thus increasing wealth. This is accomplished through elimination or reduction of estate taxes; the reduction or elimination of capital gains taxes, and the reduction of personal and corporate income taxes, especially for the upper income level individuals and then markets these individuals as job creators. For exampled, the Bush Tax Cuts in which those with incomes over a million dollars saved on average since 2004, $858,405.00 according to the New York Times. It should be noted that demand creates jobs and over 70% of the U.S. economy is based on consumer demand (Chandra, 2011).

Control of Products and Production: Controlling production or more specifically controlling the cost of production through technology and regulation which includes patent protection. The strategies are to use technology to increase productivity and control the implementation of specific regulations that limit or could place limits on products or production processes. Finally, to eliminate or reduce over-sight organizations that could enforce regulations.

Control of Lawmakers: In controlling lawmakers the goal is to ensure that only lawmakers that support policies ensuring a plutonomy are elected. This would entail restricting voters through barriers to registration, cuts to early voting, use of photo identification, and disenfranchising ex-felons (Berman, 2011), and through the use of redistricting to ensure that favorable incumbent lawmakers remain in office.

So is the United States a plutonomy? According to Kapur, Macleod, and Singh the answer is yes. This is demonstrated by their basket of stocks of companies that produced products and services for the rich; and since 1985 has “generated an annualized return of 17.8%, handsomely outperforming indices such as the S&P500” (Kapur, Macleod, Singh, 2005, p.28), and according to Professor G. William Domhoff of the University of California at Santa Cruz as of 2007 the top “20% of the people owned a remarkable 85%, [of the wealth] leaving only 15% of the wealth for the bottom 80% (wage and salary workers)” (Domhoff, 2011, p.2).

So why has the middle class disappeared according to Kapur, Macleod, and Singh it's because the United States is a plutonomy and a plutonomy is “where economic growth is powered by and largely consumed by the wealthy few and the rest” (Kapur, Macleod, Singh, 2005, p.1). and “at the heart of plutonomy, is income inequality” (Kapur, Macleod, Singh, 2005, p.22).

Second Item – The Individual Needs to Become an Entrepreneur:

Suze Orman, states that “the individual needs to become an entrepreneur”; I agree, but first let’s define entrepreneur. According to Webster’s New Collegiate Dictionary an entrepreneur is “one who organizes, manages, and assumes the risk of a business or enterprise”; a business is a “commercial or mercantile activity engaged in as a means of a livelihood” and commercial is defined as “engaged in work designed for the market”. Therefore, given these definitions anyone currently employed could be considered an entrepreneur because he or she is selling his or hers’ services to another individual, business, or enterprise.

If each of us is an entrepreneur given the definitions above, whether he or she is selling goods or services in the market place or selling their knowledge or skills to another business or enterprise, then each of us should know the very basics of accounting and the first thing to start with is the Income Statement and the Balance Sheet.

The Income Statement is defined as: Income (Wage or Salary for a given period of time) – Expenses (Items paid for within the same given period of time) = Net Income (Amount of cash left over) and should be placed into savings.

The Balance Statement is defined as: Assets (Items you have, e.g. cash, car, house, furniture, etc.) – Liabilities (What you owe, long and short term) = Owner Equity (ownership in any asset after all debts associated with that asset are paid off. For example, a car or house with no outstanding debt is considered the owner's equity because he or she can readily sell the item for cash; Investopedia)

By knowing just this little bit each individual or household can determine their income, expenses, and what they are worth for at a given period of time. Then they can plan for the future. I know I did it.

Furthermore, I agree with your Approved Card. I have given up my credit cards and never been happier.

Dr. David W. Gilbert, D.Sc. MBA, PMP, CBAP

Source:

Berman, A. (2011). The GOP War on Voting. Retrieved December 26, 2011 from

Domhoff, G. W. (2011). Wealth, Income, and Power. Retrieved October 9, 2011 from

Kapur, A., Macleod N., Singh, Narendra (2006). Plutonomy: Buying Luxurey, Explaining Global Imbalances. Retrieved December 26, 2011 from

Marsh, B. (2010). Your Coming Tax Cut (or Not). New York Times. Retrieved December 26, 2011 from

Thank you , Meet the Press, for this PRESS PASS. Suze Orman has provided financial advice to many people who cannot afford to have a financial advisor for years. I appreciate the fact that Suze has not always been a wealthy woman, and she empathizes with people who take care of elderly parents as well as children and sometimes struggle financially as a result.

I recently realized through reading that I am identified as WORKING POOR , since the middle class no longer exists. When my parents' health failed, I was able to take a teaching pension by buying years into the retirement system; then I could care for my mom and dad in their eighties. I plan on working into retirement now by continuing with part-time or full-time employment. My parents were able to retire at 62; however, I agree with Suze that any retirement prior to 70, especially by those of us in the WORKING POOR class is not wise, considering the constant assault on entitlements, rising health costs, and inflation.

It's a very good discussion. Yet, I find that not everyone can be an entrepreneur -despite past jobs not coming back- and this country needs to prioritize work, saving and education again.