Hispanic Fanatic

A friend of mine once cut up her credit cards and closed her accounts because, she said, “those pieces of plastic are evil.”

I thought this was a bit overly dramatic (she was that type of person). I also thought it was convenient to blame her chronic debt on inanimate objects rather than, say, her nonexistent self-control and materialistic tendencies.

In any case, we all know people who live beyond their means, and it’s true that many individuals teeter on the edge of bankruptcy because of their shopping addictions or love of new shoes or willingness to fly first-class to Italy for the hell of it.

But a recent study has found that when it comes to Hispanics, living large is often not the reason for going into the red. The study found that almost half (43%) of Latinos who have credit card debt depend on the plastic to pay for basic living expenses. And a significant chunk of the rest are using credit cards for tiny splurges at best.

So if Latinos are not slapping down credit cards on impulse buys and charging luxury items, why are they in so much debt?

Well, Hispanics report that the main reason for their debt is the loss of a job, and they’re more likely than other groups to say that medical costs also contributed to their financial issues.

The researchers theorize that because Latinos lost so much of their wealth in the Great Recession, they’re having trouble restocking checking or savings accounts. So putting basic items or medical expenses on credit cards often seems to be the only option.

This, of course, sucks. But as is often the case, the survey also found that Latinos are more optimistic than the overall population. So they’re more confident about paying down their credit card debt quickly.

This optimism, which borders on delusion, leads to some interesting contradictions.

For example, another poll found that almost half of Latinos (49%) said they were worried that someone in their household might become unemployed soon. Yet the same survey found that almost three-quarters of Latinos (73%) are optimistic about their finances and future opportunities.

Frankly, that’s a bizarre balancing act of fear and hope.

But maybe these results just show that Latinos are still jumpy about their financial status, years after the economic meltdown. The Great Recession so ravaged Hispanic households that many Latinos are leery about declaring that the worst is over.

At the same time, Latinos tend to be more optimistic than other groups about their future. The main reason for this positivism seems to be the immigrant mindset. Many Hispanics remember struggling in their home countries, or they hear the harrowing tales of their parents. As such, these Latinos usually have more faith in the American system and a stronger belief that their financial situation will improve.

We should all really, really hope they’re right.

Recently, everybody’s favorite crazy uncle of old media, the New York Times, asked the loaded question, “What Drives Success?” The article pointed out that some ethnic groups are more economically successful than others, and it pinpointed three reasons for this. The first is “a superiority complex — a deep-seated belief in their exceptionality. The second appears to be the opposite — insecurity, a feeling that you or what you’ve done is not good enough. The third is impulse control.”

It’s an interesting thesis. But lost in the analysis and point-by-point explanation was this side note: “Most fundamentally, groups rise and fall over time. The fortunes of WASP elites have been declining for decades.”

In other words, nobody stays at the top or the bottom forever. And as the article points out, “The fact that groups rise and fall this way punctures the whole idea of ‘model minorities’ or that groups succeed because of innate, biological differences.”

So for all the people who think Latinos are innately inferior, keep in mind that there are some “Hispanic groups in America that far outperform some white and Asian groups,” and that this trend is likely to accelerate.

The fortunes of groups twist and turn in a perpetual cycle. And one can choose to find that either comforting or terrifying.

I’ve written before about the asphyxiating grasp that rich people have on the American Dream. As we know, the concept of social mobility is, at best, a faded myth that may never be relevant again. At worst, it is delusional pabulum served up to the masses to prevent them from revolting.

But just in case you thought you could get ahead by sheer hard work and a can-do attitude, consider the following fact: According to one study, your degree of social mobility depends to a large degree upon where you live.

So for those of you who are poor in, say, Georgia, the odds are pretty good that your children are not going to swing the middle-class lifestyle. But don’t worry, “the chances that affluent children grow up to be affluent are broadly similar across metropolitan areas.” So again, the rich are going to be ok.

But wait — isn’t education the great equalizer? Well, nabbing a college degree is indeed one of the best ways to increase your income. Unfortunately, many kids are being priced out by tuitions that can only be called obscene. Again, however, you don’t have to fret over the wealthy. Because “college students have a better chance of getting financial aid if they come from affluent backgrounds than if they are lower on the income scale.” Yes, once again, the wealthy get a break denied to others, even if — as in this case — they don’t need it nearly as much as people on the lower end of the socioeconomic scale.

Of course, Hispanic kids are less likely to be rich in the first place. And thanks to backward cultural priorities, the odds are good that their children and grandchildren won’t be financially secure either.

Well, at least it won’t be awkward at Thanksgiving dinner, because we won’t have to endure about those rich relatives flaunting their wealth. Because everybody will be broke.

Due to unusual circumstances that I won’t even get into, I found myself at a ritzy event, surrounded by wealthy individuals. I happened to be standing near the door, and I saw members of the one percent walk in.

For the most part, they were polite and just like you and me. However, the exceptions were numerous enough to notice.

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Twenty years ago, I had my only direct experience with racial set-asides. I won a hundred dollars in an essay contest for Hispanic teens. Of course, kids of any race could enter, but it was clearly aimed at Latinos. I can’t recall ever being part of another program that was, whether stated or implied, just for Hispanics.

As such, I’m still waiting for those affirmative action quotas that will rocket me to the top of any employer’s wish list. Supposedly, all I have to do is show up in an HR office, mention my last name, and sit back while all the qualified white candidates are shoved out windows to make way for me.

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Perhaps you didn’t notice when a national political leader said that America was entering the “Decade of the Hispanic.”

You can be forgiven, because the speaker was Henry Cisneros, and he wasn’t talking about our current decade. He was talking about the 1980s.

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