Wednesday, June 22, 2011

Debt is GOOD for You!

“…we found that both kinds of debt had positive effects for young people. It didn’t matter the type of debt, it increased their self-esteem and sense of mastery.”

God help us.

3 comments:

Anonymous said...

And printing money that is only used to pay off debt is not inflationary.

"And yet it is happening. The Fed keeps creating money, and yet no inflation appears. The lessons we need to learn are those our grandparents knew. Money does not create inflation if every new dollar is used to extinguish debt rather than buy goods and services."

According to David Frum, here:

http://www.frumforum.com/learning-inflationary-lesson-our-granparents-knew

So quit worrying.

CBMTTek said...

Hmmm....

Let me see.

Having/owning things makes people feel good.
Young folks, those most likely not to have great paying jobs, want to own things.
They go into debt to own things.
Things make them feel good.

Therefore, debt makes young people feel good.

Yeah, I see the logic.

Ryan Fuller said...

The part I thought was most interesting was the bit about how rich kids didn't get high off of debt like poor kids did. Maybe the reason they're poor is because they feel empowered by living beyond their means?