i will agree that using CC without a repayment plan is a bad idea.
Allan
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And . . . to the government’s credit, it does not actually force people to spend more.
but there is an ARMY of Economists in govnerment and in the ivory towers who study and study “Hmm. What can we do to make consumers spend more? Let’s see. everytime we do “A” spending rises and savings fall so let’s help the economy by doing a whole lotta ‘A.’”
(They’ve come up with some pretty sophisticated models to “help” the economy this way.)
You could be right. I’m just not sure. People are stupid with their money just in general. I’m not sure the government has much to do with it. They are the reason I still have a job while all others in my field are going by the way of the dinosaur.
Hypothesis:
When rates are high people will spend less (save more).
The inverse is also true
Test:
some very smart nerds test tis hypothesis again and again, bylooking at history, By comparing two states, two countries etc…
Result:
People are always gonna waste money on stupid crap, but some policies make them spend more some make them spend less. Since many people (incorrectly) claim “spending”= “the economy” adopting policies that grow spending also grows the economy.
Ok, I understand the test results. But who do those policies have an effect on most? You’re average person? Or primarily people with a lot of money?
They D-E-F-I-N-I-T-E-L-Y imapct big purchases.
Low car rates, & low mortgage rates = more spending among all demographics.
As or credit card rates . . . mmm I think people don’t care what the number (% rate) is.
X percent of people will use credit cards and carry a monthly balance.
They will keep buying stuff until they feel squeezed by their monthly bill
Then they will stop spending so much for a while.
Also . . .
If you give people a one-time check (like a $1,200 stimmie check) they will spend $1,200.
(like on a big screen tv made in China and not helping the economy much.)
If you give them 12 monthly payments of $100 they will spend some and save some.
Why do you think they gave out stimmie checks as lump sums?
The bold makes perfect sense. You can bank on it. I’m just not sure what drives the rest of credit card spending besides what you’ve mentioned. I have an allergy towards monthly payment of any kind, so it’s hard for me to relate.
It isn’t my failing. But you have lots of poor people already doing everything they can with the time they have to earn a living. Yet progressive policies just keep adding more and more artificial cost. You subsidize housing to supposedly help the poor, but the subsidies drive up the minimum price for low income housing in each geographic area it exists. You do the same with food assistance and it has the same impact on food prices. The same in medical expenses. Every time a big government social program is implemented, what ever price government centrally sets as the benefit becomes the new floor price. And it always raises that price.
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