Comment by matheusmoreira
3 years ago
Who said anything about stopping the economy? It will keep going just fine.
I am a third worlder, by the way. My father taught me not to be indebted to anyone, a principle he himself holds to this day and a major reason for whatever prosperity my family managed to achieve.
Do you think we can remove all debt without stopping the economy? That’s simply not how business works.
IOU’s are the oil that grease the economic machine.
Personal debt, when used wisely, can supercharge a life. Buying that first car, a house, going to uni. It can change the trajectory of the person for the better. Debt-fueled investments like startups and property improvements are another example.
Shakespeare was no economist.
How could it not grease the economy? It's literally money conjured up from thin air. Would be weird if it didn't.
It's an illusion. Until loans get repaid they're just inflating the money supply. Can't get a job after college in order to pay $200k in student loans? Lost the job? People literally end up homeless or worse.
That's like saying gambling on futures with 100x leverage can supercharge a life. Yeah, I'll get rich alright if the market moves favorably to my position. Alternatively I'll get liquidated and lose everything.
> Buying that first car, a house, going to uni.
Debt is not necessary for any of that.
Debt is necessary to invest if you don’t have sufficient savings. To say that we can do away with debt is the opinion of someone who both:
- already has a good stash of resources, and
- is incapable of seeing the point of view of a poor person.
Also, all debt is very much not magic money. Most debt represents very real, hard value. Businesses routinely provide goods and services to each other with 90 or even 180 days to pay.
You’re confusing all debt with speculation and irresponsible borrowing.
If some Americans want to borrow $200k to study an arts degree, does that mean all debt is evil?
If somebody somewhere overeats, does this mean humanity should swear off calories?
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