Consumer Credit Rises For First Time In A Year Economic Report - MarketWatch
The story
Ok...honestly why is this good?
It seems to me that a big part of why the economy crashed was the fact that ordinary people over-extended their credit. It was not just the big banks doing risky things, it was also everyday people spending more than they can afford.
IMHO, there is something seriously flawed about our economy if it depends on credit to survive. Whatever happened to living within your means? When economists are saying that increasing consumer credit is NECESSARY for the recovery that tells me something is wrong.
I'm not an economist but I feel that giving people a real wage that they can live on would be far better overall for the economy than going back into a debt spiral. Granted credit is necessary for large purchases and emergencies but just using it to buy that big TV, or whatever, to "spur" the economy is a bad idea. It will just go out of control again.....
My 2cp....
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Ok...honestly why is this good?
It seems to me that a big part of why the economy crashed was the fact that ordinary people over-extended their credit. It was not just the big banks doing risky things, it was also everyday people spending more than they can afford.
IMHO, there is something seriously flawed about our economy if it depends on credit to survive. Whatever happened to living within your means? When economists are saying that increasing consumer credit is NECESSARY for the recovery that tells me something is wrong.
I'm not an economist but I feel that giving people a real wage that they can live on would be far better overall for the economy than going back into a debt spiral. Granted credit is necessary for large purchases and emergencies but just using it to buy that big TV, or whatever, to "spur" the economy is a bad idea. It will just go out of control again.....
My 2cp....
2 Comments | Leave a comment
Actually Obama did pass one of the biggest tax cuts for the middle class in history. I know it only amounted to like 20 bucks per paycheck but in the overall scheme of things, it was huge. And he is trying to raise taxes on the rich tho that's gonna be a tough battle since the rich HAVE the money to lobby, whereas us po' folk do not :)
I totally agree... I have a friend that is so excited to be given a new credit card that she promptly went out and charged $500 bucks on it. Not stuff she really needed either, just music, clothes etc. She isn't employed... so how does she intend to pay for it? I have no idea.
On the other hand I do like the fact that I was given credit at the hardware store when I had an emergency septic and water problem. Without the credit I would be totally roughing it.
This country has some really odd ideas about economics in my opinion. Give all our money away to foreign countries, raise taxes on the middle class and poor, give tax breaks to the rich... sheesh.