help please asap.?

Question

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.

Answer 1

The growth in the use of credit cards, or to express it more technically the growth in the overall level of debt held on credit cards as a % of personal income, has been instrumental in generating a fster growth of the economy (in countries where it has happened) than would have been the case without it, other things being equal. It is analagous to Keynesian pump priming, when government borrowing is boosted to sustain a rise in government expenditure, only via consumers' expenditure instead.

In theory this effect should be temporary (lasting a decade or two maybe, but not indefinitely), but in reality, because rising house prices create an increase in consumer asset value, it may not be.

Answer 2

Credit cards have provided access to goods and services that average persons may not be able to afford at that particular time. Credit cards are easy forms of short-term, high-interest bearing loans. The firms/industries benefit from the increase in spending and the banks benefit from the increase in interest!!

Answer 3

You've asked this question 3 times now...

Answer 4

created a lot more debt because people are spending without realizing it