It sounds like exactly what is happening with the US government. Trump keeps saying that we are a rich nation when in reality we are $35 trillion in debt. The USA is the ultimate living on borrowed money economy.
Nicely said.
That’s what happened with the student loan business. They handed them out to anybody who applied, and they could use them for anything they wanted, possibly even tuition but a lot of times trips to Europe.
Absolutely excellent. And we all pay for it in the long run. There are two generations now who think that living on credit and then claiming bankruptcy over and over is a normal social practice and economics. Consumerism beyond means. Keynesian economics does NOT work if it is all on credit and never gets paid off...
For the last 40 years, we have tried to convince ourselves that increasing the national debt is the same as real economic growth. Now there is a small attempt to reduce the size of government spending, the real state of the economy is being exposed. Not a pretty picture.
Another good one. If you haven’t already read it, I recommend Thomas Sowell’s “Basic Economics”.
Well put.
And the govt dept is backed by the”full faith and credit” of the US citizens, over which we have no control.
Yeah, I’m about to go bankrupt.
deep in debt and cashflow too small.
I owe my Soul... To the Company Store...
The insane amount of money people are spending on McDonald’s, according to new study
Car max charges 17-29% interest to finance a car. There ought to be a law, but then where would legislators get their kickbacks?
Just like multigenerational reserve-currency status has created a disconnect between actions and consequences that makes our positivistic society seem sustainable.