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Most Americans Don’t Understand Basic Economics


New survey shows the majority of consumers can’t correctly answer questions about borrowing, interest rates and even basic math.

The Center for Economic and Entrepreneurial Literacy (CEEL) recently released a new survey underscoring the need for increased education on personal finance and economic issues. The national survey shows an overwhelming number of Americans are unable to answer some of the most basic questions about borrowing, interest rates, terminology and even basic math. More troubling is that many Americans admit to making poor decisions with their own personal finances.

Startling highlights from the survey include:

* 54 percent of respondents could not identify what a subprime mortgage was.
* 56 percent of respondents could not identify FICO score as the most important factor in getting a loan.
* 65 percent of respondents could not identify what would remain if you subtracted 25 percent from 8. One in three respondents could not identify what 1 percent of 50,000 was.
* 75 percent did not know that when in need of short-term emergency cash, bouncing a check costs more than wire transfers, credit card advances and short-term payday loans.
* Half of respondents have overdrafted their checking account at one time, while a third of respondents have paid a bill late in the past year.
* 35 percent of respondents admitted to not having a family or personal budget that would allow them to conceivably eliminate their credit card debt by the end of 2009.


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meekandmild's picture

My Education in Basic economics.

If I got money in my pocket, i can but it, if I don't have money in my pocket I can't buy it. Thank you Ron Paul Revolution for helping me realize.

My second grader is in private school...

yet in learning about government over the last few weeks he now knows that Abraham Lincoln was our "best" president, the Constitution was a "plan" for our country which is, of course a "Democracy"...oh...and ofcourse...we are "free"!

Now I'm sure you know that I was sure to give him, as Paul Harvey says, "the rest of the story".

He won't be returning next year. We have already ordered our "home school" materials. I thank the Creator we are entrepreneurs that work out of the home.

**“The man who does not read good books has no advantage over the man who cannot read them.” ~ Mark Twain **

"...there is no doubt that it (socialism) could not possibly have affected us so widely and so deeply as it has, had it not been heavily financed". - B. Carroll Reece

Most American's couldn't

Most American's couldn't point to Chicago on a map, state in very general terms the meaning of at least three of the ten amendments in the Bill of Rights, or write a coherent summary of the three branches of government either. The long dumbing down project has been very effective. The truly educated people of today are those, like people here, who chose to seek knowlege. It sure wasn't handed to them in school.





Republicae's picture

That includes most of

That includes most of Congress and the politicians of this country.


"So long as the people do not care to exercise their freedom, those who wish to tyrannize will do so; for tyrants are active and ardent...to put shackles upon sleeping men.
— Voltairine de Cleyre (1886-1912)


"We are not a nation, but a union, a confederacy of equal and sovereign States" John C. Calhoun