"People Just Don't Understand": 43 Things People Think Are Scams But They Are Not

Service industry in general. I recently hired a plumber that took care of a problem in like half an hour. Yes the price was high for "only" half an hour work, but I paid for someone with the experience to diagnose the problem quickly, knowledge on how to abate the problem, and tools that I don't have.
Same goes for good mechanics, electricians, landscapers, etc.

Tax brackets. People think that if they make more, they'll be taxed more on everything they make, so they'll actively try to make (or report making) less money to avoid "paying more".

But those taxes only apply to new money that you make above each threshold. I'll give an example because it can be a bit hard to explain.

Let's say the tax bracket is 20% for above $60,000 and 30% for above $100,000, and that you make $105,000. You will only pay 30% taxes on that last $5,000. You will pay 20% taxes on the $40,000 between the 60k and 100k. You will not pay any taxes on the first 60k.

People often think that all 105k will be taxed at 30%. That's simply not the case.

Any socially beneficial aid. Social security, SNAP, universal healthcare, even Universal Basic Income has been proven to put more money into the economy than the funds dispersed, but that's all badged as a handout for the lazy. Meanwhile there's this dozen or so people who own just about everything and have hoarded more wealth than could be spent in a few lifetimes, that's just sitting there providing no benefit to the public at large....

Yes, your dog groomer does have to shave your matted dog. No it does not mean we are lazy.

If i tried to brush out 2 months worth of matting in one session, it would take hours and possibly days(depending on severity) of straight brushing. It would be excruciatingly painful and your dog's skin would be so raw they'd start to bleed from brush burn.

We aren't lazy, we just wont hurt your dog. Even if "Fluffy's birthday is tomorrow and he has to look good for pictures!"

Hospice merely unlocks additional supplies (adult diapers, catheters, wipes, wound care supplies, etc) and services for your loved one. It's not giving up, it's acknowledging reality.

Universal healthcare.

Social safety nets, i.e. social security. It’s not an entitlement if I’ve paid into it my entire working life.

Chip bags being full of "air". It's actually nitrogen that's intentionally added to the bags to keep them from getting smashed to dust among other benefits.

People conflate “scam” and “bad deal” constantly.

Just because it’s a poor investment or bad deal doesn’t mean it’s a scam.

That when you sell something to pawn shops or used item resellers they only give you a fraction of their resale value. If you want full value for your baseball cards or gold watch, you need to sell it to someone that will keep it and not resell it.

Credit cards. They're only a scam if you're bad with money.

MSG in food. People are terrified of it, but it's perfectly legit.

Vet care. They’re not trying to scam you out of money, the exams/rechecks, tests, preventatives are necessary.

Some (not all) of the online sites for glasses. I've spent a fraction of what I used for a single pair of glasses and got three new pair. The quality was fine, and the fit was good. As long as you use the tools offered and know your measurements you can save a ton of $$.

Most government services actually work really well.

A bunch of random stuff that you want or need to do, just look up if there's a government service that helps with it. A bunch of times there are, they are free (or very cheap), and the service you get is quite good.

Most types of insurance. Yes, whole / universal life insurance in all its permutations are scams. But many types of insurance are not.

A lot of people have trouble understanding that insurance is mostly to protect you from catastrophic loss. It is not intended that you should be making frequent claims on your car or homeowner's insurance, though many try and conclude it's a "scam" when their premiums go up or their coverage is cancelled.

Things like term life and long term disability insurance are coverages which you *hope* you will never need, and it might seem like a waste of money if you don't. The proper perspective is that your premiums (after the insurer's profit margin) go to help people who have lost a loved one, or suffered a life-changing disability. Both types of coverage can give you some serious peace of mind, which has value in and of itself.

I paid long term disability income insurance premiums for 31 years and never needed it, thank heavens. It bought a lot of peace of mind. I also paid various term life insurance premiums over my working years, several thousand dollars I estimate. Several years ago received a modest six-figure life insurance payout when my wife died of cancer, which replaced about six years' worth of her income. It was just enough of a cushion to let me make adjustments to my expenses, and to ease into retirement. Definitely not a scam.

While we're at it, though, all used car warranties are 110% scam.

Unclaimed property letters. Don't go through a specific company but instead file through your states department of revenue for review and claims!

Vaccines?

9/10 times your mechanic isn’t scamming you, sometimes you have to take apart near half the car just to get to 1 bolt so you can change the oil and prices reflect the additional time and labor otherwise you’re taking apart and rebuilding cars for free.

Renters insurance.

Had to involve my renter's insurance a few years ago when my upstairs neighbors flooded their apartment. Called my insurance company and they handled everything. The only things I had to do were send in some pictures of the damage and a list of what was lost and they just handed me a check for a few grand to replace it all.

Totally worth the roughly $110/year that it costs.