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by NishanStepak 17 days ago
Our economy is based on debt. New money comes from issuing debt. If there are not enough people taking on debt, the economy will not function as well. This is part of the reason so many people take on debt. The cultural value is worth more than the monetary value.
1 comments
IAmBroom 17 days ago
Only partially true. New money definitely comes from Nations issuing debt in the form of bonds, but I've never heard it claimed that my VISA interest adds to the GDP.

> This is part of the reason so many people take on debt. The cultural value is worth more than the monetary value.

That's hilarious. "Why did you spend four years getting a ___ degree?"

"For the cultural value, and to add money to the economy!"

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NishanStepak 16 days ago
Visa Debt boosts consumer spending by adding to the Gross Domestic Product. People spend money they would not have had access to without credit cards or bank loans. The debt from loans flows to the business which the loan comes from. Also student loans suppress wages because of the need to pay off interest quickly. It is a double edged sword. Debt is a form of control.
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