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It's both. My sister in law lives on government assistance and is taking out a 35% APR loan to get a piano. That's the most egregious and recent example, but her whole life is like that. She looks at what other people have and says it's not fair that other people have things that she doesn't. All the townies stuck in that neighborhood are like that. They're all poor, but not a single one lives in austerity. Increasing their wages isn't going to fix the underlying issue, which is a lack of self-control and an inability to resist instant gratification.
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You can buy a house in Appalachia for $10K. That's a month's rent in NY or the California bay area.