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No...that would create what is known in economics as "the paradox of thrift". If consumers and the government attempts to live within it's mean, anytime soon, the economy would collapse and the attempt at frugality would actually backfire and likely end up making it harder for you to survive. At this point our economy is totally dependent upon debt and profligate spending.
That having been said, I agree with the OP in regards to what is going to happen soon, although I do not know what it is going to look like. In honesty, the economy is more resilient than I thought. I predicted, incorrectly (and I am glad that I am wrong), that we would tank again in 2014. However, I think the world has an interest in propping up our economy....lest the whole world goes down the drain from the vortex of our descent.
Yes, sadly, our economy is now dependant on debt. But it is still prudent for as many as possible to stay out of debt. It makes surviving a downturn in the economy much more easy to navigate.
Yes, sadly, our economy is now dependant on debt. But it is still prudent for as many as possible to stay out of debt. It makes surviving a downturn in the economy much more easy to navigate.
Until they begin taxing you on worth as well as income.
Liberals want to fund "free" college using the 529 money I have saved.
Until they begin taxing you on worth as well as income.
Liberals want to fund "free" college using the 529 money I have saved.
I know. I saw your post the other day regarding this and I meant to tell you at that time how much I admire your determination and planning in regard to this. I wish I had been that diligent!
Yes, sadly, our economy is now dependant on debt. But it is still prudent for as many as possible to stay out of debt. It makes surviving a downturn in the economy much more easy to navigate.
I do not agree. Say you get out of debt and save money....and the dollar collapses....along with your saving. Say you get out of debt and put money in the market and stocks collapse....again....poof....no safety net. Say things crash.....what will be the value of "good credit" in an economic collapse....where lending has dried up? Now....I understand that you do not want people to be able to come and TAKE your home or transportation.....but if you go broke eventually, even if you own your home free and clear....if you cannot pay the taxes on the property they can and will confiscate your home.
Unless they bring back debtors prisons......It might be prudent to rack up as much debt as you can on things that you can barter.
Jobs for native-born Americans are becoming scarcer. Wages are being forced down. 70% of Americans are living paycheck-to-paycheck; the fact that so many have nice cars, premium cable, live in a house, etc., is a facade, an illusion, as so many of them are drowning in debt. The young adults are "hiding out" in the educational system, praying that the economy will improve by the time they get their 2nd Master. Do you really think we can keep this up for another 20 years? The party will come to an end at some point.
I do not agree. Say you get out of debt and save money....and the dollar collapses....along with your saving. Say you get out of debt and put money in the market and stocks collapse....again....poof....no safety net. Say things crash.....what will be the value of "good credit" in an economic collapse....where lending has dried up? Now....I understand that you do not want people to be able to come and TAKE your home or transportation.....but if you go broke eventually, even if you own your home free and clear....if you cannot pay the taxes on the property they can and will confiscate your home.
True. But for the here and now, owning my home means no mortgage payment. No credit card debt means no spending above my means. I can't control what will happen after the collapse that I do indeed believe will occur. But I can to a greater degree control what happens in my financial life NOW if I have more liquidity.
the fact that so many have nice cars, premium cable, live in a house, etc., is a facade, an illusion, as so many of them are drowning in debt.
its not the fact that they living in an illusion but the fact they are living above their means, they cannot live on a budget, its gimme gimme I want it now. It not that pickups cost 50k but the fact somebody will pay 50k for a pickup.
if people would not finance everything and pay the high prices, then the mfg would have to lower the cost to stay in business. basiclly supply and demand
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