Is Credit The Key?

The country runs on credit, or so we’re told. Without functioning banks willing to lend, some companies won’t meet payroll. But wait – does anyone else see a problem here? Doesn’t this imply an overreliance on credit? Maybe that’s the real problem – too many people and businesses living beyond their means. If so, that’s a structural problem whose impact can only be postponed, not eliminated.

I like this analysis. The money quote:

I’ve been amazed at the sheer numbers of otherwise sensible people who seem to be under the impression that paper credit–not savings and capital–is the key to capitalist success.



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