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.
What Happened to JD Underground (JDU)?
5 years ago
Yes, the government has it all backward. My railing against law school has brought about discussion of some of my other political views. I hope to write more later.
ReplyDeleteI liked your very last statement "Healthy economies grow from production, saving and investing, not borrowing and spending." However some may view it as un-American. I remember an episode of Dr. Phil he said "I know it's un-American to tell you not to spend, have a credit card, etc." He is a white male American, he won't be media-attacked. He oft-times referred to how he told his then new wife he was not going to live under financial pressure. I noticed that this country DOES NOT truly invest in truly educating and equipping its youth with tools to make them long-term producers. More so mindless drone assembly line cog in the wheels, even in the practice of law. Other countries encourage their children to embrace hard sciences and foreign languages (even though younger generations hate it). Here it's marketing advertising, body image, shopping and food. With marketing and advertising for tangible products or education it's smoke and screens. Buy, don't you want to feel better, buy an education, won't it MAKE you better? I never seen so many socially retarded people in my life.
ReplyDeleteHi Brutus,
ReplyDeleteWe have alot in common. I share your pain and I am trying to do something about it. I would like to cross-link to your site. My site is www.mydebtorsprison.com. If you like what you see please list me on your blog roll