When I saw this article intro: "In an encouraging sign for the economy, U.S. consumers increased their debt in January for the first time in a year, just the latest hint that household demand may be on an upswing."
More. Consumer. Debt. Is. An. Encouraging. Sign.
Stop laughing. It's not funny.
If this type of economic philosophy - the kind that implies that we can basically sit on our asses and borrow our way to prosperity - is going to continue to rule the day, then we're done. That type of reasoning has lead to the current crisis. Too much debt with not enough income caused the collapse. What is needed is less spending and more saving. Sure, it's painful. It sucks. But it has to be done.
The media tend to believe that no pain from withdrawal is necessary to solve the problem. Problems with debt? Borrow more!
Give Tiger another porno star.
Give Barak another cigarette.
Give Americans more loans.
That is the US Government's policy logic in a nutshell.
This is your "Change," Debt Children. Don't spend it all in one place, because your credit card is over the limit.
That type of economic reasoning is the spawn of John Maynard Keynes. May it be forever discredited.
Healthy economies grow from production, saving and investing, not borrowing and spending.
The Baghdad Bob of the Law School Scam
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