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In the long run credit is only beneficial if you use it for a productive purpose. Giving credit to people who are just going to use it for lifestyle inflation,
by breischl 10y ago
In the long run credit is only beneficial if you use it for a productive purpose. Giving credit to people who are just going to use it for lifestyle inflation, which is most Americans, is not doing them any favors.
- dragonwriter 10y ago> In the long run credit is only beneficial if you use it for a productive purpose. Having a lower cost of borrowing is, ceteris paribus, a benefit. For one thing, it increases the range of uses which are net productive.
- ZoeZoeBee 10y agoIf people were logical and not prone to treat their equity as an ATM creating more debt you'd be on to something. Ceteris Paribus only exists in econ 101