4 ms·

We probably shouldn't be basing our economy on debts then, as we tend to do.

by ysavir 2y ago

cyberax 2y ago
Why? Debts are like levers, they multiply both growth potential, and failure potential.
- TimeBearingDown 2y ago
  Very true. My impression of the US over the past two decades at least though, is that financial services are bleeding many Americans dry even while they believe it’s all to their preferences - that they’re using the levers correctly, while any outside observer would say they’re being taken advantage of, even if it is their choice. Total credit card interest and fees paid by Americans are up 47% from the high of 2019 • Overall economic output continues to increase, but it drains so quickly, and increasingly to depreciating assets. Of the young adults I know, I ask if they do even have a rough budget. Only two couples said yes, none of the singles or other couples. I know many are paying large sums to interest on consumer debt, with student loans looming for later. I don’t have any other statistics, and now will seek them. It raises the question at least, how might we assess the benefit achieved thanks in part to loans to the majority of households over the past 50-100 years? • https://wallethub.com/edu/how-much-americans-pay-in-credit-card-interest-and-fees/129964 https://wallethub.com/edu/how-much-americans-pay-in-credit-c...
randomdata 2y ago
No, we probably should. Barter may work okay for when you have chickens to trade for boots, but you'll soon run into limitations. The vast majority of trades people make depend on some kind of future delivery. I don't want supper to show up when I get to work in the morning. It is much more practical to, instead, accept a token of debt (money) from my employer and then see that the debt gets repaid by my employer later when I go to the grocery store. A debtless economy would be an absolute nightmare.

4 ms·

We probably shouldn't be basing our economy on debts then, as we tend to do.

by ysavir 2y ago

We probably shouldn't be basing our economy on debts then, as we tend to do.

cyberax 2y ago
Why? Debts are like levers, they multiply both growth potential, and failure potential.
- TimeBearingDown 2y ago
  Very true. My impression of the US over the past two decades at least though, is that financial services are bleeding many Americans dry even while they believe it’s all to their preferences - that they’re using the levers correctly, while any outside observer would say they’re being taken advantage of, even if it is their choice. Total credit card interest and fees paid by Americans are up 47% from the high of 2019 • Overall economic output continues to increase, but it drains so quickly, and increasingly to depreciating assets. Of the young adults I know, I ask if they do even have a rough budget. Only two couples said yes, none of the singles or other couples. I know many are paying large sums to interest on consumer debt, with student loans looming for later. I don’t have any other statistics, and now will seek them. It raises the question at least, how might we assess the benefit achieved thanks in part to loans to the majority of households over the past 50-100 years? • https://wallethub.com/edu/how-much-americans-pay-in-credit-card-interest-and-fees/129964 https://wallethub.com/edu/how-much-americans-pay-in-credit-c...
randomdata 2y ago
No, we probably should. Barter may work okay for when you have chickens to trade for boots, but you'll soon run into limitations. The vast majority of trades people make depend on some kind of future delivery. I don't want supper to show up when I get to work in the morning. It is much more practical to, instead, accept a token of debt (money) from my employer and then see that the debt gets repaid by my employer later when I go to the grocery store. A debtless economy would be an absolute nightmare.