Mortgage Slave and the Hegemony of Capitalism
Introduction
The sociological Imagination concept was developed by sociologist C. Wright Mills. It is used to illustrate how someone is capable of putting aside daily routine by looking at things in different perspective. This allows for new skills. One is able to question one’s behavior to get a clear understanding of particular actions and a certain way of life. Mills pushed on the importance of making connections with the society that we live in so that we can understand how our personal lives are connected to the history of the society we live in (Mills, 1959). By understanding these connections, people are less likely to blame others for their troubles but rather the society they live in. Sociological imagination requires that people view things socially by coming into terms with how people influence one another. Everyone is obliged to facts on how society functions and therefore, issues associated with it would be solved knowledgeably. People feel limited by their troubles since society dictates it and the fear of being judged by others. Outcome of our actions are based on current situations, values instilled as well as the surroundings. Sociological imagination allows people to free themselves from norms and explore different options. One is also required to dig deeper in understanding the history and the role that one has to play in the community. Personal choices are made without considering what the society’s norms are but at the same time, society contributes in nurturing individual responsibilities and actions. C. Wright Mills had the aim of reconciling society and individuals in the society. Sociological imagination helps people see what is real and what could be in the future if only the desire is there. The need to critique the usual routine and allow us to develop a new routine is what sociological imagination advocates for.
Mortgage slave is a term used to describe homeowners who spend most of their income in paying off mortgage loans. The house bought acts as collateral until the loan is repaid off. People with low income but with the desire to own homes go for loans which enable them to buy homes and most of them spend almost the rest of their lives trying to pay off the debts. The high cost of living in urban areas has left people with no option but to go for mortgages which drain them financially. Urbanization has resulted to reduced affordable housing and this has contributed largely to mortgage slavery. Most of the income is used to pay loans as a way to owning a permanent residence or a roof under their head. Mortgage slaves live on a tight budget and this leaves them with little or no investments at all. Alternative income from their investments is not enough to fasten the process of paying the loans and so they become slaves for a very long time. Mortgages ties people to jobs for a constant flow of income so that the loans can be paid easily. This is followed by an annual tax that is paid for owning a property which drains the owners financially. This affects the general lifestyle of these people from their basic needs to personal well-being. Failure to pay off Mortgage loans results to repossession of the house by the bank or reselling it to potential buyers to recover the cash. This renders people who have been trying to pay for the house almost all their life homeless.
Sociological imagination defines personal troubles as problems faced individually (Mills, 1959). Many people perceive mortgage slavery as personal troubles because it only affects them. No one helps in paying of the loans and this affects individuals in one way or another. Owning a house in the modern world is not as easy as it used to be. Many developments have resulted to increase in prices of land which has made many people resort to mortgages. The idea of buying a home is definitely a personal decision and how to pay for it becomes a personal trouble. Home owners are deprived the luxury of living an extravagant life because 70% of their income goes into paying loans. Stressing over mortgage loans have resulted to sacrifices that go a long way in pursuit of clearing the loans. Social values are part of a society; they direct how people should conduct themselves (Rokeach, 1973). Sacrifice is a social value that is illustrated in mortgage slavery, one has to forego certain luxuries in order to pay off loans. This affects the life of an individual gradually especially on the investments that one makes. One has to manage the little that is left after paying debts while striving to provide the necessities that a family requires. Respect for human dignity is another social value that is fulfilled when a person decides to provide a descent home for his/ her family. Good living conditions push one into taking up mortgage so that his family can be comfortable. Honesty is needed between both parties; the bank and the homeowner since they both facilitate the process of paying off loans.
Companies involved in mortgage businesses use the media as a suitable platform to advertise themselves. They paint the idea of owning a home in people’s mind, and the next thing is a bunch of people investing their money in mortgages (Castronovo, 2012). However, the media has come to people’s rescue by illustrating the cons behind taking up mortgages. Media advises people on the need to save their money and invest in a venture that could bring them extra income instead of sinking into mortgage slavery. As many might see renting a house as a loss compared to owning a home, they should consider the advantages that come with it. Renting a house allows one to balance finances as well as live the life that they desire. This is because it does not take up a lot of their income.
On the other hand, Mortgage loans take up most of their income, and this deprives them the freedom to live; however, they want. Financial freedom could be acquired only if people ditched mortgages. Debts are liabilities and so are mortgages, but many people view them as assets, only to be drained financially in return. Social issues brought out include poverty, which is how people with mortgage loans end up eventually. People languish in unending loans which take up most of their resources. It is also noted that it becomes so hard to save since the money left after paying for a mortgage is used to for necessities, if people don’t save then they won’t be able to invest and the cycle continues.
Among other dominant cooperation’s in the mortgage businesses is the Hong Kong home mortgage developers who spend their disposable income on repaying mortgage loans, to a figure as high as 70%. The elevating home prices and high allowances for one to secure own home has encouraged limited loans to populations who want to be homeowners, however, lacking the requires capital capability. These loans have therefore led to a retrogressive impact upon the indebted, who are unable to venture in any investment as they have been damaged financially. These developers based in Hong Kong are such as the Real estate In Hong Kong, Chinese real estate business people and the Chinese Builders. In a nutshell, the Hong Kong home mortgages cooperation’s are evolving to an age of housing for slaves. These imply to the yearning homeowners that they could probably spend a lifetime paying off the mortgages. These is simply because the home prices and incentives are always increasing and have almost tripled since ownership in 1998. Hong Kong’s mortgage slaves, however, have been very prominent in keeping the estate and housing market afloat. This is despite the existence of a few negative equity instances, which is understandable. This however awakens individuals and makes them aware that seeking property market information is paramount before making any purchase.
The need to own a house but one is not in a position to afford it outright is the main cause of mortgage slavery. The ratio of house price is increasing gradually over the years compared to the income ratio. This has resulted to loans which are being paid taking up a lot of income. The public becomes involved by protesting against high rates of housing in order to allow for people to easily own homes without straining their incomes. Personal troubles eventually become public concern by creating awareness among people on the factors to consider before taking up mortgages is also important in ensuring that the right decisions are made. Slavery is a form of commodification and mortgages are used to provide economic value to growing economies by making people pay large sums of cash for a long period of time. It deprives them financial freedom in pursuit of housing. Affordable housing should be a priority for a country to ensure that people are not exploited by paying high rates in mortgages as a way of owning a home. People with medium income as well as low income earners are at the verge of slavery if the government and companies won’t collaborate to provide affordable housing. A country is said to be developed when the issue of housing has been covered accordingly. Therefore, it is the initiative of the government to ensure that there is alternative accommodation for all classes of income earners. This will help people to afford descent accommodation without the need for expensive mortgage which strains their financial status.
Conclusion
Sociological imagination is a concept that identifies an individual with the society and therefore it should be considered at all times (Giddens, 1996). Mortgage loans has become an option that many people have taken blindly and the effects that come with it are irreversible. It is therefore important to put into consideration the pros and cons that come with mortgages. Many have become bound to paying debts for most of their lives and this has affected their social and economic lifestyle all together leading them to become mortgage slaves. The government should oversee the issue of housing in various countries so that social issues associated with loans can be curbed. Mortgages are good only if people take up houses they can afford and not huge loans that become a burden. Society should not be the reason for haste decisions so as to fit in but instead people should learn to take different paths so that they can acquire freedom. Personal troubles become public concern eventually and so people should stop blaming everything on themselves.
References
Castronovo, C (2012). “Social Media in Alternative Marketing Communication Model”. Journal of Marketing Development& Competitiveness.6;117-136.
Giddens, A (1996). “Sociological Imagination.” Introduction to Psychology. Karl Bakeman. New York: Norton & Company.
Mills, C (1959).” The Sociological Imagination”. Oxford University Press 5, 7.
Rokeach, M (1973). “The Nature of Human Values”. New York: The Free Press.