The economic slump we’re in got me thinking about credit. Something really bugs me. At some point the amount of used credit out there will exceed (if it hasn’t already) the amount of money there will ever be.
When there are record sales years, is that really good for the economy on the whole if the sales were mostly on credit? It’s kind of just shifting a burden. Kind of like a pyramid scheme.
Don’t get me wrong. I’m not against loans and credit. As long as they are wise investments, like a home, education, or other things that have potential to return more than the value of the loan and interest.
I’d like to learn more about this. Where is there a politically unbiased economist when you need them?