I always thought you couldn't borrow your way out of debt. I'm confused by the experts borrowing money to improve the economy. Isn't that artificial relief and temporary? I don't really understand finances that well.
The problem is, they are right that gov't need to spend their way out of this recession.
Unfortunatley borrowing hugely to do so won't help anyone in the long run!!!
It's the same as household expenses, just scaled up. when times are good, you should save a bit so it is put aside for when times are bad. that is why small businesses are generally doing a lot better in this climate than big businesses. small businesses know the importance of cash reserves!
sadl, it is too late to do the saving bit now, so the gov't are trying to pretend they did it by borrowing. Now if you or I did that, where would it land us?
Cartoon Time.
5 comments:
Yes, quite to the contrary we're actually told that debt is good for us.
Well, if the whole worlds economy is based on credit - as it seems to be - I guess that debt *is* good.... [rotflmao]
What a (bad) way to run a planet!
I always thought you couldn't borrow your way out of debt. I'm confused by the experts borrowing money to improve the economy. Isn't that artificial relief and temporary? I don't really understand finances that well.
V V said: I don't really understand finances that well.
Neither do the so-called economists... and the less said about the banking 'profession' the better...
The problem is, they are right that gov't need to spend their way out of this recession.
Unfortunatley borrowing hugely to do so won't help anyone in the long run!!!
It's the same as household expenses, just scaled up. when times are good, you should save a bit so it is put aside for when times are bad. that is why small businesses are generally doing a lot better in this climate than big businesses. small businesses know the importance of cash reserves!
sadl, it is too late to do the saving bit now, so the gov't are trying to pretend they did it by borrowing. Now if you or I did that, where would it land us?
exactly!
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