CNN considers personal financial prudence a threat. No, I am not kidding.

[Vort]

Americans create new economic threat with their own savings

[Just_A_Guy]

Keynesians have never really considered consumer saving to be a good thing . . .

[Vort]

Exposing my ignorance yet again. I'm appalled at such an attitude.

[Just_A_Guy]

https://youtu.be/Sh_fhTszjiU

[Guest LiterateParakeet]

When I saw that article this morning, I was rolling my eyes too.  Good grief. 

Edited May 13, 2020 by LiterateParakeet

[Carborendum]

4 hours ago, Vort said:

Americans create new economic threat with their own savings

3 hours ago, Just_A_Guy said:

Keynesians have never really considered consumer saving to be a good thing . . .

It may sound like a ridiciulous philosophy, but there is some wisdom in pointing out the threat.

The entire economy is so interlinked with debt that to eliminate all debt in the US within a very short period of time would be very detrimental to the underlying structure.

If, instead, the entire economy shifted away from debt over the course of say 20 years, it would provide the country with a boom like it hasn't seen since the laissez-faire era of the 1800s.

 

[Just_A_Guy]

20 minutes ago, Carborendum said:

It may sound like a ridiciulous philosophy, but there is some wisdom in pointing out the threat.

The entire economy is so interlinked with debt that to eliminate all debt in the US within a very short period of time would be very detrimental to the underlying structure.

If, instead, the entire economy shifted away from debt over the course of say 20 years, it would provide the country with a boom like it hasn't seen since the laissez-faire era of the 1800s.

 

“We don’t want people to save, or to pay down debt?”

”We do, but when the next guy’s president.”

[Carborendum]

5 minutes ago, Just_A_Guy said:

“We don’t want people to save, or to pay down debt?”

”We do, but when the next guy’s president.”

Well, anything sound bad if you say it with that attitude.

BSF, if the economy were to get a boon where all debt were paid tomorrow and everyone simply moved forward without ever borrowing again, there would be some problems with our financial system that is essentially founded on the idea that all money = debt = cash.

It is because it is such a messed up system that doing the wise thing is actually detrimental in the short term.  To use Benson's analogy, it would be like making an airplane land immediately because the hijackers took us off course.  Instead, we need to replace the hijackers with the actual pilots and then have that pilot restore the intended course.

So, yes, that could easily be turned into "do it while our guy is in charge."  Actually, that is exactly what it is.  But that's not necessarily a bad thing.

[NeuroTypical]

So, a sidebar.

Quote

US credit card debt suddenly reversed course in March and fell by the largest percentage in more than 30 years. At the same time, savings rates climbed to levels unseen since Ronald Reagan was in the White House.

Dave Ramsey is in heaven on his radio show.  In the middle of a friggin depression, with unemployment at 14.7%, Americans are putting less on credit cards, and saving historic amounts of money.  He spends all his time trying to convince people the only thing keeping them from being rich is their spending and budgeting habits.  This is proof positive that people can change them. 

 

[Just_A_Guy]

4 minutes ago, Carborendum said:

Well, anything sound bad if you say it with that attitude.

BSF, if the economy were to get a boon where all debt were paid tomorrow and everyone simply moved forward without ever borrowing again, there would be some problems with our financial system that is essentially founded on the idea that all money = debt = cash.

It is because it is such a messed up system that doing the wise thing is actually detrimental in the short term.  To use Benson's analogy, it would be like making an airplane land immediately because the hijackers took us off course.  Instead, we need to replace the hijackers with the actual pilots and then have that pilot restore the intended course.

So, yes, that could easily be turned into "do it while our guy is in charge."  Actually, that is exactly what it is.  But that's not necessarily a bad thing.

I was being a little tongue in cheek—if you watch the West Wing clip I link to above, they say those exact words.  

[Carborendum]

11 minutes ago, NeuroTypical said:

So, a sidebar.

Dave Ramsey is in heaven on his radio show.  In the middle of a friggin depression, with unemployment at 14.7%, Americans are putting less on credit cards, and saving historic amounts of money.  He spends all his time trying to convince people the only thing keeping them from being rich is their spending and budgeting habits.  This is proof positive that people can change them. 

You're not kidding.  We found out that when we really decided what was "necessary" we were spending less than half of what we normally would spend.

But now that I'm working again, I'm finding that there were some expenses we simply didn't have when I didn't have a job. 

• Gasoline was much lower. (and toll roads, and oil changes, and tire rotations, and...)
• Tithing.  (No income, no tithing.)
• Groceries vs food storage.
• No restaurants.  I'm going to dine out again.  Just not as often.
• Home depot has become much less important.  We're always asking if we "really need to fix that drawer" or not.
• Many of our children are running low on clothing that fits because we simply didn't buy any -- AT ALL.  And four of them are in that fast growing stage.

[Carborendum]

30 minutes ago, Just_A_Guy said:

I was being a little tongue in cheek—if you watch the West Wing clip I link to above, they say those exact words.  

So was I.  Hence the  at the end of that line as well as yours ^^

Edited May 13, 2020 by Carborendum