Our problems today stem from too much debt, both personal and governmental. When enough of the populace is overindebted, they become conservative in spending. When corporations see that, they become conservative as well, and cut back on production. The same is true with governments. As governments get more indebted, people begin to think they won’t spend as much in the future, which is a reasonable assumption.
But what do the pundits suggest? Borrow more. If you only would borrow more, and allocate the money to our favored projects, things would improve. But that is more of the “hair of the dog that bit you” reasoning. More debt does not solve the problem of too much debt.
Read Full Article »