how has the economy play a role when it comes to people and credit cards. or better yet, how has credit cards effect the ecomony.
2006-09-25 05:03:26 · 3 answers · asked by Anonymous in Science & Mathematics ➔ Geography
Phoenix has given a very good answer, credit cards help stimulate the economy for exactly the reason she laid out, it enables people to continue to buy things even during hard times, the net result is that it is harder to distinguish actual economic health unless you crosscheck the level of personal debt. It also helps enable peole to conduct worldwide financial transactions much more easily, this is not such an important factor at this time, but as international internet purchases continue to expand, the effects will be more prominent. (Future) Net efects: increased world consumer trade.
2006-09-25 05:21:29 · answer #1 · answered by Tristansdad 3 · 0⤊ 0⤋
When the economy is not doing well, people use more credit (because they can't actually pay for what they buy). Because credit card sales are still recorded as sales and as profits made by a company, their use gives the illusion people are able to buy things when really, they are just charging it because they do not have the money. They give the illusion we are prospering when really we are just racking up debt and spending money we don't have.
Does that make any sense?
2006-09-25 12:09:49 · answer #2 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
money for the goverment!!!!
2006-09-25 14:46:14 · answer #3 · answered by sharon b 3 · 0⤊ 0⤋