Jason Chaffetz, a representative of the ruling Republican Party in the United States of America, has recently stated that as per the healthcare plan proposed by the Grand Old Party (GOP ) the poor people in the country can in a way buy health insurance if they were willing to let go of their new iPhones. As it may be imagined, the said comment has provoked unmitigated outrage across the country. Chaffetz has said that people in America have choices and it is for them to make the said choice. He has advised them not to splurge on iPhones and instead opt for healthcare plans.
The Latte Factor
Experts are likening his comment to what David Bach, a self-made millionaire, had said a few years back. In this statement, known popularly as The Latte Factor, Bach had opined that people were losing money and going broke by spending money in trivial pursuits such as coffee. The experts though paint an entirely-different picture. It is the stagnancy in wages and increasing healthcare costs and that of other necessities of life such as student loans and rent that are making them insecure.
Consumerism is not to be blamed
It is not that people in the United States of America are becoming poor because they are being wooed by brands such as Apple and Starbucks to spend all their money on these supposed luxuries. Users on Twitter have also stated that people who are deemed eligible to receive help under programmes such as Medicaid are not ones looking to buy an iPhone 7. It is true that smartphones are pretty expensive but at the same time the costs of healthcare are at a much different level. It is also known that young people in the United States of America are always looking to buy the latest smartphones even if they cannot always afford them.
Situation of savings in the United States of America
On an average, most people in the United States of America do not even have around 1000 dollars in their savings account. In case of 33 per cent of the people in the age group of 25 to 34 years there is no savings at all. Taking into account hardware expenses and monthly plans smartphone users spend around 1000 dollars a year. 85 per cent of people have around one smartphone each. According to Nielson, young people make up the biggest class of smartphone users in the United States of America. On the other hand, healthcare costs around 10,000 dollars per year for each person.