Many people were outraged when Barrack Obama  the former president said ¨We saved Detroit¨. The reason this outraged so many people was because it was right after GM motors and Chrysler were going bankrupt and the United States government bailed them out. At the time Detroit was the motor company of the world and mass producing millions of cars when they were in their prime. When GM motors and Chrysler were going bankrupt they went to the government to bail them out with a good reason to bail them out. At the time those two companies had over a million employees and going bankrupt would mean that the whole economy around Detroit would collapse.

So if the government did not bail out Chrysler and GM many people in the city Detroit would lose their jobs.  After the government bailed out GM and Chrysler it still messed up Detroit. The companies left Detroit and transferred over seas for cheaper labor and the city of Detroit lost all their jobs. Detroit is now empty and is known as a place were drug users use drugs and leave.

Teenagers are at an age where they feel like they should fit in with society. Their is a lot of psychology and scientific facts that make you do these choices of choosing brand and certain companies that might make you feel cool. When looking at advertisements it stimulates a part of our brain called the cortex it controls the thought and action part of your brain.

The idea of coolness has changed a lot over time around the 1950s being cool was to be a rebel. The idea of being cool now a days is to have the most popular brands or the newest technology.In the 1980s apple would advertise the competitors as weapons. In a video we saw in class their was two people and the question was if they bought apple phones because it made them look cooler in a sense but the couple disagreed that they have friends who do not have apple products. The film suggests to blame genetics that as a teen you are desperately trying to fit into society.

In the video we saw it was a professor from Duke University he explained the main idea of the pain of spending. He gave an example of how spending money causes pain suppose you were going on a cruise, and you had two payment options one is to pay three months ahead and the other is to pay when you get off the boat. Obviously if you have to pay when you get off the boat you would not enjoy the cruise but you would enjoy it if you payed three months ahead and had no worries to pay when you get off.

Intro

Recently in my second period class my teacher showed my class a film on inequality and the vast pay gaps in the United States. It was crazy information that the film was giving me. It was like having my eyes opened for the first time on how the wealthy doing certain things can hurt the middle and low class. Such as if every rich person decided to save all of their earnings it would affect the middle and low class.

Question

Something that was going though my mind was that how the government, and banks created the credit card. In the 1950s a man on a single income working from 9-5 could afford to maintain his family. Around the 1970s the whole working women era was booming about women working because the men were at war. The reason the women had to start working was because in the 1970s the man of the house could not afford to maintain his family. In  a result of that men and women started working longer hours and still could barley make it by. This meant that the pay was terrible and in a result of working longer hours you still could not make it by. It was crazy to see how the banks introduced the credit card. They saw that people could not afford to buy anything and that people had no money to spend on entertainment, automobiles, houses and much more so they created an option that gave people money to spend in a way that you borrowed it from the rich and still payed money for using it.

Another thing that kept bothering me was that all the wealthy people on the news kept claiming that cutting taxes would lead to job creation. They kept calling themselves job creators. However Nick Hanauer a man who has seen both sides of the financial side, he grew up in middle class and is now wealthy and owns his own pillow factory says that when you cut the taxes they do not  hire more that the rich people just take their money offshore to where they can get the most interest. Another interesting claim he made was that when wealthy people spend more money the economy runs smoother

When we were given the opportunity to speak on the phone with a banker, with Eric Campbell to ask him questions about banking me and my group came up with questions you might wonder about. The first question we had for Eric was that if the bank uses our money while it sits in our accounts and why the amount on our account does not change if they do what types of accounts do they choose?  He said that the banks do use our money while it sits in our accounts tangibly. He said that the banks use our money in other investments and use that money to keep themselves alive.

Overall this activity and listening to the radio podcast was a huge learning experience. My questions about the FDIC and how much money they protect was really interesting. Talking to a trust worthy banker and knowing he was not going to hide things away from me was a huge piece of mind.  My follow up questions are if a check is written and payed out at a check cash house and paid out instantly with out verification what was to happen. I did further research and found out more answers to my question http://www.popsugar.com/career/Banking-Tips-20-Somethings-19936527 this website talks about how the check cashing houses run a huge risk on these checks getting cashed without enough funds.