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The economy needs us to get into debt

0 replies

EuclidianGeometryFan · 01/11/2024 21:41

Not a TAAT but I've just been reading about people getting into so much unsecured debt and how bad it is.
However, this is an absolute economic necessity. It is how things work.

Money in an economy is like blood in a body - it needs to circulate, and the bigger the body the more blood is needed. An adult has more blood than a small child.
Ever more money is needed as the economy keeps growing. Money is created by borrowing. That is how money comes into existence.
Either the government borrows to grow the economy, or companies and businesses do, or the people do.
Both the government and businesses are very happy for the people to be doing the borrowing.
That is why we had the 2008 crash, and why sooner or later there will be another crash. It is baked into the system.

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